Yeti Outlines Long-Term Targets, Maintains Fiscal 2026 Outlook
Yeti (YETI) outlined its long-term growth strategy and financial framework Thursday while also reiterating its fiscal 2026 guidance.The outdoor products company set financial targets through fiscal 2030, including low-double-digit to high-teens growth in annual adjusted earnings per share. Yeti is aiming for mid- to high-single-digit annual sales growth, while cumulative free cash flow is projected to reach $1.2 billion to $1.4 billion over the five years."The next chapter for Yeti is about building a larger, more global and more durable company, supported by expanding product platforms, improving profitability and strong free cash flow generation," Chief Executive Matt Reintjes said in a statement.The company's shares were up 3.6% in Thursday afternoon trade. The stock has lost 5.6% in value so far this year.For the ongoing year, Yeti continues to anticipate adjusted EPS of $2.94 to $3 on sales growth of 7% to 8%. The current FactSet consensus is for non-GAAP EPS of $2.98 and top-line growth of 7.6%. The company pegs full-year free cash flow at $200 million to $225 million.Yeti plans to "selectively pursue" tuck-in acquisitions, it said, adding that it has identified about $100 million in potential productivity opportunities. The company is seeking to expand into more geographies, develop new products across its categories, improve commercialization in the US, and scale globally."These priorities are underpinned by a clear operating plan and disciplined capital allocation framework, which we believe will drive durable growth and attractive long-term shareholder returns," Reintjes said.Last month, Yeti reported a surprise year-over-year increase in its second-quarter earnings and flagged weakness in its drinkware category in the US amid market pressure and competition.In July, Hydro Flask maker Helen of Troy (HELE) raised its fiscal 2027 sales outlook after a stronger-than-expected fiscal first quarter.Price: $41.73, Change: $+1.18, Percent Change: +2.91%
