YETI's Earnings Suggest a Long-Lasting Boost From COVID-19
Among companies seeing enhanced sales from the coronavirus pandemic, investors have been keen to discern which organizations are developing lasting advantages versus short-term benefits. Lifestyle-brand cooler and drinkware specialist YETI (NYSE: YETI), which released its second-quarter 2020 earnings report on Aug. 6, appears to fall in the former category, because of swiftly changing customer purchasing habits.
Revenue increased by 7% to nearly $247 million over the second quarter of 2019, a noteworthy result itself given that sales plunged 20% in April, the first quarter of the month. But as business ramped up in May and June, the composition of the top line was remarkable. Sales through YETI's wholesale channel, which typically provides the lion's share of its revenue, cratered by 24% to roughly $114 million against the prior-year quarter. Direct-to-consumer (DTC) sales, conversely, soared 61% to $133 million.
Let's briefly examine this disparity and the implications for YETI's future growth.
Source Fool.com
