Yeti, like Nike, suffered a shutdown at a manufacturing plant in Vietnam due to COVID
Yeti Inc. says it has suffered a manufacturing plant shutdown in Vietnam, adding to the long list of supply chain issues consumer companies have faced due to COVID-19.
“More recently, we have seen the government shut down one of our mild cooler suppliers in Vietnam due to the continued impacts of COVID,” said Matt Reintjes, general manager of the outdoor coolers and accessories company, during his more recent call for results, according to FactSet.
“While our previous work to drive supplier redundancy in key product areas helps our ability to absorb this type of temporary disruption, the shutdown underscores the inherent volatility that persists in the world. “
In its fiscal fourth quarter results in June, Nike Inc. NKE,
discussed closures of Vietnamese facilities that make his shoes following the spread of COVID-19.
To see: Nike manufacturing in Vietnam halts due to COVID-19, creating another supply chain challenge
This is just one of the many supply chain hurdles consumer businesses face as back-to-school and holiday shopping season approaches. Finding containers and trucks to move items has been among the other problems faced by businesses.
Yet, Yeti YETI,
posted second quarter earnings that were better than expected.
Net income totaled $ 56.2 million, or 63 cents per share, compared with $ 33.5 million, or 38 cents per share, last year. Adjusted EPS of 68 cents beat the FactSet consensus by 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 year, Yeti predicts an increase in sales of between 26% and 28%, up from previous forecasts for an increase of 20% to 22%. EPS is expected to be between $ 2.25 and $ 2.29, compared to $ 2.12 and $ 2.16. And Adjusted EPS is now expected to be between $ 2.42 and $ 2.46 from the previous outlook of $ 2.28 and $ 2.32.
The FactSet consensus is for sales of $ 1.396 billion, which implies growth of 27.8% and EPS of $ 2.47.
Also: Santa could be stranded as supply chain issues put toy industry at risk for the holidays
“Yeti delivered another stellar quarter of performance, facing headwinds in the supply chain (including shutting down a mild cooler supplier in Vietnam) to build up stock in what we expect to be a solid 2H : 21, “Cowen analysts wrote in a note.
Cowen evaluates that the Yeti stock is outperforming with a price target of $ 118.
“Dynamics and execution in a challenging supply chain and logistics environment remain impressive and scarcity contributes to the brand warmth and visibility through 2022,” Stifel analysts wrote in a note. .
Stifel values Yeti shares with a price target of $ 100.
“Across our coverage universe, Yeti remains one of the most resilient top-line growth stories, and in our follow-up with management, we came away with a feeling
that management has a high degree of confidence that a solid double-digit turnover
growth is achievable even beyond this year, ”UBS wrote in a note.
UBS rates the Yeti stock as neutral with a price target of $ 112.
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Raymond James is optimistic about the direction of the company.
“The company has chosen to raise its 2021 forecast for the second time, reflecting second-half sales growth above its long-term target and despite difficult comparisons, as well as an improving outlook for EPS,” wrote analysts headed by Joseph Altobello.
“We continue to believe that the stock premium valuation is warranted given Yeti’s recent track record of healthy and steady growth and the potential for our estimates to rise further, to be accompanied by a strong balance sheet as the rock. “
Raymond James assesses Yeti shares outperforming with a target price of $ 111.
Yeti stock has climbed 49% year-to-date, far outpacing the 18.2% growth of the S&P 500 SPX,