Yeti moves into luggage as it celebrates 75% surge in profits
Yeti has kept your coffee hot and your beer cold. Now the burgeoning US brand is providing the angler on the move with a new range of luggage and backpacks.
The 10-piece Crossroads Collection includes three new backpacks, two duffels, two wheeled suitcases and packing cubes in different sizes.
A material, inspired by motorcycle clothing, which Yeti calls ‘Tuffskin Nylon,’ is used in the construction of the new products. It is lightweight, abrasion-resistant and water-repellent, says the manufacturer. Like Yeti coolers, the range is premium priced, with the backpacks starting at $200, going up to $450 for the large soft-sided suitcase.
The Crossroads Collection is the follow-up to the company’s Panga line launched in 2017.
Yeti recently announced a 75% surge in profits for its fourth quarter (on an adjusted basis) on a 26% sales gain. The company is now forecasting sales growth of between 15% and 17% for 2021, with growth weighted to the first half of the year.
Net sales increased 26% to $375.8 million, compared to $297.6 million during the same period last year, a result that topped Wall Street’s estimate of $353 million.
In keeping with current trends across the outdoor industry, net sales from the direct-to-consumer (DTC) channel increased 46% to $217.8 million, compared to $149.0 million in the prior-year quarter, driven by strong performances in drinkware and coolers. The DTC channel grew to 58 % of net sales, compared to 50% in the prior-year period.
Matt Reintjes, President and CEO, said: “Our remarkable fourth quarter and full-year performance reflects the ongoing vitality and relevance of our brand with customers, as well as the incredible dedication of and strong execution by our global employees.
“Our fourth-quarter results were highlighted by 26% net sales growth, a record gross margin of nearly 60% and over $250 million in cash following an additional $100 million voluntary debt payment at the end of the quarter.
“This strong quarter ended a year that saw Yeti cross the $1 billion net sales milestone, driven by 19% top-line growth. Our revenue growth combined with expanding margins generated over 75% adjusted EPS growth – significantly ahead of our initial outlook during an unprecedented year of disruptions and challenges.”