Direct-to-consumer sales help Yeti increase its income in Q3

Direct-to-consumer (DTC) sales starred as global cooler company Yeti saw net income creep up by 3% to almost $53m in its third financial quarter.

Yeti, a popular brand with anglers, reported that growth was achieved on revenues of $362.6m, up 23% on the same period last year, with the $197.1m DTC channel accounting for 54% of sales, up from 51%.

The drinkware category increased 24% to $205m on continued product expansion and the demand for customisation, while the coolers and equipment category was up 20% to $149m on soft and hard coolers, bags and other outdoor products. International sales grew 69% to $34.1m, making up 9% of sales. Canada, Australia, Europe and the UK all showed growth as pandemic restrictions eased.

The company’s Vietnamese soft cooler supplier shut down for nine weeks, but is back in operation and is building capacity. The impact on fourth quarter sales is likely to be negligible, says Yeti.

Looking ahead, Yeti does not see shipping issues easing in the short term, but is more optimistic on raw material inflation and supplier costs. Some targeted price increases are planned for next year. The Austin, Texas-based company has raised its full year outlook and is now expecting top line growth between 28% and 29% compared to its previous guidance of 26% to 28%.