Why Drinkware Maker YETI Holdings Shares Are Falling Today
Portfolio Pulse from Nabaparna Bhattacharya
YETI Holdings, Inc. (NYSE:YETI) shares dropped after reporting Q4 earnings and sales below expectations. Despite a 16% increase in Q4 net sales and significant growth in Drinkware and International sales, the company missed the street view with earnings per share of 90 cents against an expected 96 cents, and net sales of $519.79 million against an expected $535.95 million. The company also announced a $300 million stock repurchase program and provided a fiscal 2024 outlook with adjusted sales expected to increase by 7% to 9% and adjusted EPS between $2.45 and $2.50, below the estimated $2.68.
February 15, 2024 | 3:41 pm
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YETI Holdings reported lower-than-expected Q4 earnings and sales, leading to an 11% drop in share price. The company also announced a $300 million stock repurchase program and provided a cautious fiscal 2024 outlook.
The significant drop in YETI's share price is directly attributed to its Q4 earnings and sales not meeting expectations, which signals potential concerns about future growth and profitability. The announcement of a stock repurchase program typically indicates confidence from management in the company's future, but the cautious outlook for fiscal 2024 may temper investor enthusiasm in the short term.
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IMPORTANCE 90
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