YETI Holdings, Inc. (NYSE:YETI) Q2 2023 Earnings Conference Call August 10, 2023 8:00 AM ET

Company Participants

Tom Shaw - Vice President, Investor Relations

Matt Reintjes - President & Chief Executive Officer

Mike McMullen - Chief Financial Officer

Conference Call Participants

Randy Konik - Jefferies

Peter Benedict - Baird

Sharon Zackfia - William Blair

Joe Altobello - Raymond James

Robby Ohmes - Bank of America ML

Peter Grom - UBS

John Kernan - TD Cowen

Xian Siew Hew Sam - BNP Paribas

Tom Shaw

Good morning and thanks for joining us to discuss YETI Holdings' Second Quarter 2023 results. Leading the call today will be Matt Reintjes, President and CEO; and Mike McMullen, CFO. Following our prepared remarks, we'll open the call for your questions. Before we begin, we'd like to remind you that some of the statements that we make today on this call 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, please refer to the risk factors detailed in our most recently filed Form 10-Q and the Form 8-K filed with the SEC today.

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. Unless otherwise stated, our financial measures disclosed on this call will be on a non-GAAP basis. We use non-GAAP measures as we believe they more accurately represent the true operational performance and underlying results of our business. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in this morning's press release or in the presentation posted this morning through Investor Relations section of our website at yeti.com.

And now, I would like to turn the call over to Matt.

Matt Reintjes

Thanks, Tom, and good morning, everyone. YETI remains on pace in 2023 with sales moving to the higher end of our prior range, strong gross margin expansion and a raise to our adjusted operating margin and full year EPS. Before diving into the results and our strategic priorities, I would like to start with what we are seeing across our diverse channels in this increasingly dynamic environment.

Starting with Soft Coolers and Gear Bags, that have been out of the market for the majority of 2023. We remain on track to reintroduce the M20 backpack, the M30 tote and our sidekick dried gear bag in the fourth quarter. We will also launch smaller sizes for each style of soft cooler in the fourth quarter and extend the sizes of the dry bag line in early 2024. Again, I would like to thank our YETI employees, partners and customers for their tremendous focus and execution throughout this effort to get these products back to market.