2 Encouraging Signs for Yeti Investors
Shares of outdoor goods retailer Yeti (NYSE: YETI) finally received some love from Wall Street earlier this month. The company's stronger-than-expected third-quarter update soothed investor concerns about whether the company's pandemic and stimulus check-driven surge in sales in 2020 and 2021 would be followed by a significant slowdown. Leading up to the report, shares had been crushed this year, falling more than 62%. But the company's encouraging quarterly sales have helped the stock climb about 27% this month, though the stock still has a way to go to fully rebound.
Why are investors more optimistic about Yeti stock today than they were last month? There are likely two primary reasons for the rosier view for the company. First, the company's year-over-year revenue growth rate in Q3 accelerated compared to the prior quarter. Second, management provided upbeat guidance during a time of significant macroeconomic uncertainty.
Yeti's third-quarter sales rose 20% year over year to $433.6 million. Not only was this well ahead of analysts' average forecast for revenue of $414.5 million but it marked an acceleration from the company's 17% top-line growth in Q2. The results, which also exceeded management's own expectations for the quarter, were driven by "balanced sell-in and sell-through at wholesale, solid customer retention and new customer acquisition growth in our direct channel, and a strong contribution from our international expansion," said Yeti CEO Matt Reintjes in the company's third-quarter earnings release.
Source Fool.com
