YETI Brand Awareness Climbs As Sales Grow 20%

YETI’s explosive growth in the third quarter (Q3), with sales up 19.6%, can be attributed to its many channels, including wholesale, direct-to-consumer, its own branded stores, and third-party marketplaces. “The deep engagement YETI has with its existing consumers, along with its acquisition of new customers, is based on its essence of breadth and depth of products,” said Matt Reintjes, CEO at YETI. The company stated that it has the best assortment of product inventory since before the pandemic and is positioned well going into the holiday selling period.

Margins are challenged but on the mend next year

Although sales were robust, the company’s profits were down 14% from last year. The cost of goods, which is made up primarily of product and transportation costs, was 49% of sales compared to the previous year’s 43%. Higher supply chain costs significantly contributed to the increased cost of goods. However, the company believes that transportation expenses will decrease next year. “Ocean freight costs are declining, which will be a source of margin recovery for 2023,” stated Mike McMullen, interim CFO at YETI. Other contributors to lower margins include foreign exchange fluctuations and the mix of products sold during the quarter.

YETI plans to expand its stores in 2023

The company will have 13 branded stores by the end of 2022 and plans to open more stores in 2023. “Omnichannel for YETI has been very powerful for the brand; we are where and when consumers want to shop, including our fully branded retail stores.” While the wholesale partnerships have been very successful, visiting a YETI store location is the only way to see the full range of products. “Walking into one of our stores and seeing the portfolio of products all in one place with a highly knowledgeable sales staff is a special experience,” said Reintjes. Being able to touch and feel products and ask questions about their use has been an excellent way for shoppers to experience the brand. The company relies on customer and ambassador opinions to inform its future product development cycle.

Newly released Yonder™ Plastic Water Bottles

The company has focused on innovative products developed based on its robust ambassador program and customer feedback. The newly released product line of Yonder™ Plastic Water Bottles was specifically produced based on feedback from users of the YETI’s insulated stainless steel bottle. Outdoor enthusiasts and consumers living an active lifestyle wanted a lighter water bottle. The Yonder products were strategically engineered to be lightweight and virtually shatter-resistant with a leak-proof cap.

The brand launched the Yonder™ bottle in two sizes and four colors in the true YETI fashion of being thoughtful with its product launches. In an interview with Reintjes, he discussed how the marketing and product teams did a great job creating the story around the water bottle and showing how the new product fits into consumers’ lives. “We want to be part of the consumer’s life throughout their daily routine.”

Product innovation comes from ambassadors and consumers

“We worked with a few of our brand ambassadors to design a true lightweight water bottle that fits the needs of our consumers, whether deep in the wild or highly active at home,” said Reintjes. The new Yonder™ products were designed using input from more than 150 outdoorsmen and outdoorswomen across various pursuits, including world-famous mountaineer and filmmaker Jimmy Chin, and fellow legendary climber and mountaineer Conrad Anker.

“YETI already makes the best-insulated drinkware, and when they asked me to collaborate on a lighter-weight water bottle, I was eager to offer my feedback,” said renowned athlete, storyteller, and YETI ambassador, Jimmy Chin. “Yonder is the perfect drinkware option for anyone looking for a lightweight but incredibly strong water bottle for outdoor adventures.” YETI put its newest product to the test, sending one of the first Yonder Bottles with ambassador and Olympian surfer John John Florence as he sailed from Hawaii to Fiji, covering over 3,000 miles in two weeks.