Does Yeti Holdings Have Staying Power?
Yeti Holdings (NYSE: YETI), maker of high-end drinkware and coolers, had a great 2020. Shares of the stock are up over 100% in the past 12 months as consumers continue to flock toward the premium outdoor brand. The company is one of the only non-essential retailers to see a boost during the pandemic, but with a trailing price-to-earnings (P/E) ratio of 61.3, shareholders are betting a lot of growth is still to come. Here are a few things Yeti is doing to continue growing its business and increasing its staying power.
Image source: Getty Images.
Over the past few years, Yeti has transitioned from selling its products wholesale through big-box retailers to going direct to consumer (DTC) through wholly owned retail channels. In 2015, 92% of the company's sales were wholesale, with only 8% DTC, but over the trailing 12 months ending in September 2020, 51% of total sales were from DTC. This is noteworthy because of the improved financial profile DTC offers. Yeti's gross margin has grown from 49% to 56% since 2018, which helped its operating margin expand to 24% last quarter.
Source Fool.com
