YETI Holdings, Inc (NYSE:YETI) Q1 2020 Earnings Conference Call - Final Transcript

May 07, 2020 • 08:00 am ET


YETI Holdings, Inc (NYSE:YETI) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings. Welcome to YETI First Quarter 2020 Earnings Conference Call. [Operator Instructions]

I will now turn the conference over to Tom Shaw, Vice President of Investor Relations. Thank you. You may begin.

Tom Shaw

Good morning, and thanks for joining us to discuss YETI Holdings first quarter 2020 results.

Before we begin, we would like to remind you that some of the statements that we make today on this call, including those statements related to the impact of the COVID-19 outbreak on our business, may be considered forward-looking, and such forward-looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. For more information regarding these forward-looking statements, please refer to the risks and uncertainties detailed in this morning's press release as well as the risk factors discussed in our Form 10-Q for the quarter ended March 28, 2020, filed with the SEC earlier this morning. We undertake no obligation to revise or update any forward-looking statements made today as a result of new information, future events or otherwise, except as required by law.

During our call today, we'll be discussing YETI's adjusted EBITDA and certain other non-GAAP measures pertaining to completed fiscal periods. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in the press release issued this morning as well as in the supplemental reconciliation, both of which are available in the Investor Relations section of the YETI website. We use non-GAAP measures as a lead in some of our financial discussions as we believe they are -- more accurately represent the true operational performance and underlying results of our business.

Today's call will be led by Matt Reintjes, President and CEO of YETI; and Paul Carbone, CFO. Following our prepared remarks, we'll open the call up for your questions.

With that, I'll turn the call over to Matt.

Matthew J. Reintjes

Thanks, Tom. Good morning, everyone. We appreciate you joining us. I'd like to start by speaking directly to our employees, their families, our customers, partners and vendors to say thank you for all you have and continue to do for YETI. We will be here for you as the world gets back outside and back to chasing new adventures. In this time of incredible uncertainty, our full focus remains steadfast on addressing the things we can control, acting with the same tenacity, adaptability and resilience that has been the hallmark of YETI since our inception. Regardless of the external threats, we believe what matters most are a powerful, innovative and lasting brand, financial strength and flexibility and making a positive impact on our customers in the YETI community. That's our focus.

But let me first step back and give you a little perspective on the first quarter. We entered 2020 with incredible momentum and a clear operating plan. Through mid-March, quarter-to-date sales were up 21% year-over-year with low double-digit gains in wholesale and 31% growth in direct-to-consumer. Even with the disruption that began in March, YETI ended