Yeti Inc. says it experienced a shutdown in a Vietnam manufacturing facility, adding to the long list of supply chain problems that consumer companies have experienced due to COVID-19.
“Most recently, we’ve seen the government mandated shutdowns of one of our soft cooler suppliers in Vietnam as a result of the ongoing impacts of COVID,” said Matt Reintjes, chief executive officer of the outdoor cooler and accessories company, during its most recent earnings call, according to FactSet.
“While our prior work to drive supplier redundancy in key product areas helps our ability to absorb this type of temporary disruption, the shutdown does underscore the inherent volatility that lingers globally.”
During its fiscal fourth-quarter earnings in June, Nike Inc. /zigman2/quotes/203439053/composite NKE -0.94% discussed the shutdowns in Vietnamese facilities that make its shoes as a result of the spread of COVID-19.
This is just one of many supply chain hurdles that consumer companies are facing heading into the back-to-school and holiday shopping season. Finding containers and trucks to move items have been among the other problems companies have faced.
Still, Yeti /zigman2/quotes/206430919/composite YETI -2.81% reported second-quarter earnings that beat expectations.
Net income totaled $56.2 million, or 63 cents per share, up from $33.5 million, or 38 cents per share, last year. Adjusted EPS of 68 cents beat the FactSet consensus for 56 cents. Sales of $357.7 million were up from $246.9 million last year and also ahead of the FactSet consensus of $328.5 million.
For the full fiscal year, Yeti is guiding for a sales increase between 26% and 28%, up from previous guidance for a 20% to 22% increase. EPS is expected to be between $2.25 and $2.29, up from $2.12 and $2.16. And adjusted EPS is now expected to be between $2.42 and $2.46 up from prior outlook for $2.28 and $2.32.
The FactSet consensus is for sales of $1.396 billion, implying 27.8% growth, and EPS of $2.47.
“Yeti delivered yet another standout quarter of performance, navigating supply chain headwinds (including the shutdown of a soft cooler supplier in Vietnam) to build inventory into what we expect to be a robust 2H:21,” wrote Cowen analysts in a note.
Cowen rates Yeti stock outperform with a $118 price target.
“Momentum and execution through a challenging supply chain and logistics backdrop remains impressive and scarcity helps brand heat and visibility into 2022,” wrote Stifel analysts in a note.
Stifel rates Yeti shares hold with a $100 price target.
“Across our coverage universe, Yeti remains one of the more resilient top-line growth stories, and in our follow-up with management we came away with a sensethat management has a high degree of confidence that strong double-digit top linegrowth is achievable even looking out beyond this year,” wrote UBS in a note.
UBS rates Yeti stock neutral with a $112 price target.
Raymond James is upbeat about the company’s guidance.
“The company opted to raise its 2021 guidance for the second time, reflecting sales growth in the second half of the year above its long-term target and despite tough compares, along with an improved EPS outlook,” wrote analysts led by Joseph Altobello.
“We continue to believe the stock’s premium valuation is warranted given Yeti’s recent track record of healthy and consistent growth and the potential for further upside to our estimates, to go along with a rock-solid balance sheet.”
Raymond James rates Yeti shares outperform with a $111 target price.
Yeti stock has soared 48.7% for the year to date, far outpacing 18% growth of the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.08% .