Is Yeti an Overpriced Fad?
Yeti Holdings (NYSE: YETI) is known as a premium brand for coolers, bags, apparel, and drinkware such as tumblers, mugs, and bottles. These products are sturdy and reliable, helping food and drinks retain temperature for long periods. They are especially active in the sporting community. Approximately 60% of total sales are through wholesale channels, with the balance being direct to consumers via the company's e-commerce platform and a handful of physical retail locations.
The consumer discretionary stock began trading in October 2018 with an $18 initial public offering, and shares moved downward from there almost immediately. Shares ascended steeply in 2019, rising to nearly $36 in April, but it has been up and down since then.
Yeti has certainly produced strong fundamental results. Its annual revenue growth has been averaging more than 18%, which is impressive for a company with a diverse product line across established consumer categories. These coolers and tumblers improve upon the existing alternatives, and there is a strong brand behind them. But this growth is achieved without delivering a truly disruptive new technology or service.
Source Fool.com
