: Yeti stock gains after earnings beat, raised full-year outlook amid strength in drinkware sales

Shares of Yeti Holdings Inc. YETI gained 0.9% in premarket trading Thursday, after the drinkware, coolers and outdoor products maker beat third-quarter earnings expectations and nudged up its full-year outlook, helped by a bump up in gross margin. Net income slipped to $42.7 million, or 49 cents a share, from $45.5 million, or 52 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 60 cents beat the FactSet consensus of 55 cents. Sales were essentially flat at $433.6 million, above the FactSet consensus of $427.5 million, as drinkware sales rose 6% to $253.3 million and coolers and equipment sales fell 8% to $171.5 million. The drop in coolers and equipment sales was due primarily to halted sales of soft coolers affected by recalls. Gross margin improved to 58.0% from 51.3%, boosted by lower freight and product costs. For 2023, Yeti lifted its adj. EPS outlook to about $2.32 from $2.23 to $2.32. The stock has eased 0.5% over the past three months through Wednesday while the S&P 500 SPX has slipped 1.9%.

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