What Happened:
Shares of outdoor lifestyle products brand (NYSE:YETI) jumped 16.8% in the afternoon session after the company reported second quarter earnings results. YETI beat analysts' EPS expectations. Its revenue also outperformed Wall Street's estimates. Management called out strengths in the Coolers & Equipment category and the International markets. Overall, this quarter was mixed but with some key positives.
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What is the market telling us:
YETI's shares are very volatile and over the last year have had 10 moves greater than 5%. But moves this big are very rare even for YETI and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the stock gained 16.1% on the news that the company reported first quarter results that blew past analysts' EPS expectations. Its revenue also outperformed Wall Street's estimates. The company called out a balanced contribution from both wholesale and direct-to-consumer channels. International sales also grew to a record 19%, assisted by a re-acceleration in domestic growth. While full year revenue guidance was maintained, EPS guidance was raised. Overall, we think this was a really good quarter that should please shareholders.
YETI is down 15.7% since the beginning of the year, and at $42.49 per share it is trading 20.7% below its 52-week high of $53.60 from December 2023. Investors who bought $1,000 worth of YETI's shares 5 years ago would now be looking at an investment worth $1,370.
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