YETI : Earnings Transcript 2024 Q1

Corrected Transcript

09-May-2024

YETI Holdings, Inc. (YETI)

Q1 2024 Earnings Call

	Total Pages: 19
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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

CORPORATE PARTICIPANTS

Tom Shaw	Michael McMullen
Vice President-Investor Relations, YETI Holdings, Inc.	Senior Vice President, Chief Financial Officer & Treasurer, YETI
Matthew J. Reintjes	Holdings, Inc.
President, Chief Executive Officer & Director, YETI Holdings, Inc.

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OTHER PARTICIPANTS

Martin Mitela	John Kernan
Analyst, Raymond James & Associates, Inc.	Analyst, TD Cowen
Randal J. Konik	Peter Jacob Keith
Analyst, Jefferies	Analyst, Piper Sandler & Co.
Anna Glaessgen	Brooke Roach
Analyst, B. Riley Securities, Inc.	Analyst, Goldman Sachs & Co. LLC

Peter Sloan Benedict

Analyst, Robert W. Baird & Co., Inc.

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MANAGEMENT DISCUSSION SECTION

Operator: Good day and welcome to the YETI Holdings First Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

And now, I would like to turn the conference over to Tom Shaw, the Vice President of Investor Relations. Please go ahead.

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Tom Shaw

Vice President-Investor Relations, YETI Holdings, Inc.

Good morning and thanks for joining us to discuss YETI Holdings' first quarter fiscal 2024 results. Leading the call today will be Matt Reintjes, President and CEO; and Mike McMullen, CFO. Following the 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-K. 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.

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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

Unless otherwise stated, our financial measures discussed 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 the press release or in the presentation posted this morning to our Investor Relations section of our website at yeti.com.

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

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Matthew J. Reintjes

President, Chief Executive Officer & Director, YETI Holdings, Inc.

Thanks, Tom, and good morning. YETI delivered a great start to 2024 as evidenced by our strong first quarter results. We saw positive global demand for our brand and our broadening range of products. And we had great execution across multiple fronts driving double-digit growth in both our wholesale and DTC channels as well as our Coolers & Equipment and Drinkware categories.

Our wholesale performance was supported by sell-in and sell-through relative to the year-ago period, while our DTC business showed continued growth across e-commerce, corporate sales, Amazon and YETI retail. In Coolers, with our new innovation and expanded awareness campaign, we believe we are well-positioned for the upcoming seasonal demand. In Drinkware, our range of bottles and tumblers continued to deliver strength within the category. By geography, international growth exceeded 30% year-over-year to reach a YETI high of 19% of total sales even as our domestic growth was nearly 10%.

Behind the strength of the brand, the growing product portfolio and global expansion, we are on track to deliver on our full year top line outlook. Given the combination of inbound freight recovery, product cost improvements driven by outstanding work by our supply chain and operations team and strong price discipline, we're pleased to report profitability to build upon our historical strength, delivering a 450-basis-point improvement in gross margins. Following our top line performance and gross margin strength, our adjusted operating margin also expanded by 440 basis points for the period.

In the quarter, we also delivered on our capital allocation priorities, starting with the completion of our Mystery Ranch and Butter Pat acquisitions. Our integration of these businesses is on track as we accelerate our mid and long-term opportunities in bags and cookware. Finally, we announced about $100 million accelerated share repurchase plan in late February, which was fully executed last month.

From a top line perspective, we remain optimistic on our demand drivers for the full year. We expect sales performance consistent with our original guidance as we balance performance against anticipated ongoing conservative purchasing at higher price points, balanced channel sell-in and demand and our compare against headwinds as a result of last year's recall-related gift card redemptions.

Looking at our bottom line, we are raising our outlook to reflect our margin strength and the execution of our ASR. As previously indicated, we will continue to evaluate thoughtful and strategic capital allocation opportunities in the quarters ahead.

Turning to our growth strategy in 2024 and beyond, our priority remains to extend brand reach and engagement, drive product diversification across our portfolio, leverage our powerful omni-channel to reach customers and build our global business. Shifting to our brand reach, Q1 highlighted the ongoing evolution of YETI's breadth and depth brand strategy.

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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

In the early months of 2024, we have activated alongside some of our larger global partnerships. In the second year of our partnership with the World Surf League, we became the presenting partner for the first event in the season, the YETI Pro Pipeline in Oahu. On the mountain, our activation included continued events such as Natural Selection. Finally, in Formula One racing, our partnership with Red Bull Racing is proving to find creative ways for YETI to integrate and support the team.

We also established a new partnership in the world of professional soccer with a club looking to disrupt the status quo. In March, the Kansas City Current debuted the world's first stadium built specifically for a women's pro sports team. We're incredibly proud to support Current, their visionary ownership and the team's efforts to elevate the profile of both the sport and these incredible professional athletes. We look forward to the many innovative ways we will connect our brands.

Our community marketing efforts combined with the amazing work our team does on the brand side showed how we grow, develop and connect our global audiences. Fitness was a natural place to start the year, highlighting the work our ambassadors put in before heading out to the wild and the YETI gear that gets them through it all. We expanded our health and fitness efforts this year with brand placement in nearly 1,300 gyms across the country.

Next, we focused on highlighting our expanded Drinkware offerings in coffee, driving awareness, reach and relevance for new and existing global customers. As you may have seen, this week, we added to the portfolio a new YETI French Press that can double as a beverage pitcher as we look to release the standalone pitcher later this summer.

YETI also received two incredible brand accolades during the quarter that speak to the passion, talent and creativity of our team. Ad Age's 2024 In-House Agency of the Year and Fast Company's most innovative companies in PR and brand strategies. These affirmations, while not the goal, are a testament to the energy, realness and humanity that the team puts into our brand. This is what creates the emotional connection and sustainable passion for what we do. This isn't about a moment. It's about a movement towards reconnection of people and community to the wild.

I want to thank the entire YETI team for their belief and pouring themselves into this against a market backdrop that at times is more focused on buzz. This brand has been built on consistently and sustainably engaging customers and communities, showing up in real ways and staying true to the spirit of what YETI is, all while growing and evolving globally.

To that end, in the current quarter and throughout 2024, we will find moments to engage new and existing customers from spring travel to gift giving occasions to the start of summer, with incredible stories to tell of people and places that support our expanding product assortment.

As we shift to product, there are three key themes this year, a focus on growth in our Cooler family, the evolution of YETI into broader food and beverage and the product expansion potential under the YETI brand umbrella and brand building playbook. Across our product range, we're in a great position to capitalize on warmer weather and the beginning of summer travel and outdoor activities. We're leveraging a few key demand drivers as we head into the season, innovation, awareness and conversion.

We're excited about the next wave of hard cooler innovation in 2024, building upon our legacy dating back to our first hard cooler in 2006. Recently, we debuted our Roadie 32 cooler, our smallest and most portable wheeled cooler to-date. The Roadie was designed to pull up to a campsite, move through a tailgate or handle weekend tournaments. Later this summer, we plan to introduce a personal side to our cooler, which will anchor at the entry

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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

price point for YETI hard coolers at $200. Think of this as a good day out type cooler that will work well on a side by side, on a golf cart or on the job.

On the Drinkware side, we're seeing a great response to our deep portfolio of 50-plus offerings across our premium range of bottles and tumblers. This is part of our growth and expansion strategy as we support more moments in their day. We are evolving this category and building out solutions to address what we see as consumer needs and opportunities.

For instance, the previously announced French press and pitcher complement last year's beverage bucket and wine chiller and are a sign of the evolution and the opportunity. Additionally, after years of requests from our customers, we will launch a couple of highly giftable barware items in limited supply in time for Father's Day.

To round out the 2024 offerings, we also plan to introduce our first YETI cast iron cookware later this summer. Outside of Coolers and Drinkware, we're excited by the prospects of what we see as possible in bags, cargo and the expanding group of offerings under our Coolers & Equipment family. We expect to deliver innovation across its entire range, starting with our flagship dry bag expansion earlier this year, following last year's addition of new waterproof dustproof cargo boxes. There's more to come around this.

We continue to be focused on driving awareness and top of mind for YETI. We're deploying a range of brand efforts across TV, digital, print and out-of-home to keep the brand and product in front of the consumer. This includes an incredible partnership with our wholesalers to drive awareness during those important moments as we launch new products. Additionally, we're using a broad range of direct performance marketing programs focused on driving consumers towards conversion.

Through these expanded efforts in innovation and marketing, we will continue to deliver integrated storytelling that connects people and products highlighted at times with color inspiration from the wild. As we see opportunities to reach more customers, engage them in impactful ways and tell powerful brand and product stories; we're also focused on strengthening our global go-to-market. Our strong and diverse channels to market are a key contributor to the balanced growth achieved in the first quarter and speak to the consistency and power of YETI.

Turning to our DTC performance. We saw the benefits of customer value and UPT against a more challenging traffic and customer count as we lapped the start of last year's recall and our selective end-of-life transitions. Our Amazon Marketplace remained consistently strong as we see that customer loyalty to the channel further supporting our strategy of diverse channels to market. Corporate sales delivered strong order volume and inbound demand. The addition of more efficient and cost-effective printing technology for hard coolers underscores our continuous improvement efforts delivering value for the customer and YETI.

We opened the newest locations of our YETI retail stores in The Woodlands outside of Houston and in New York City's Flatiron District. Our stores continue to provide a singularly unique opportunity to see the depth and breadth of YETI's product offering, engage with product experts, learn and shop. We are targeting to open six total locations this year, including the upcoming openings in Kansas City and Calgary, which would bring our fleet total to 24.

In our wholesale channel, we saw positive demand across categories further supported by better sell-in compared to last year's period. Channel inventory is in good shape as our partners continue to lean into seasonal colors and remain bullish on product releases we have planned throughout 2024 and into 2025. As previously outlined, we are thoughtfully expanding our global wholesale reach, including the already announced partner in Tractor Supply

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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

in the US combined with new partners in Canada, Australia and Europe. In addition, we also continue to cultivate new wholesale partnerships that align with our increasingly diverse product assortment.

As we shift to our non-US business, I'd like to provide some color on how we're building out our global leadership to support our focus and growth in these areas. Naoji Takeda joined YETI recently as our new Managing Director, Asia. Naoji most recently comes from KEEN, the outdoor footwear brand, where he held a variety of global and regional roles including leading the brand's growth in Japan and throughout Asia Pacific. With his experience and passion based in innovative brands, I'm excited to see him take on the immense opportunity we have in the region.

Looking at the overall international business, we continue to see strong momentum for the brand and incredible opportunity in undeveloped markets. In addition to solidifying our regional structure, our near-term focus is on growing brand awareness and building our successful omni-channel approach.

In Europe, overall brand traction is outstanding as we see strong results in the UK and Germany as well as other markets throughout Europe. It has been increasingly fun to see YETI show up from the countryside to the city streets as we activate the brand. Supporting this momentum, we're making key investments in our team, the brand and processes to scale the business. This includes the transition of our UK 3PL this month, which will support future growth while also driving improved speed to market and operational efficiency.

In Australia, we had another incredible quarter. Our team in Australia continues to show that the YETI growth playbook travels even as they contribute to making it stronger and nuanced to the market. We really like the balance we have in Australia with powerful independent retailers all the way up to our partnership with outdoor leader BCF. We also began testing a new partnership with a sporting goods retailer as we focus on reaching customers deeper into urban markets. From a product offering perspective, we see great traction across the portfolio with customization capabilities in demand much like we have seen in North America.

In Canada, growth was supported by strong wholesale sell-through despite some of the same channel caution that we have seen domestically. Within wholesale, we're beginning to test several new targeted relationships that will complement our channels to market and allow us to reach new consumers in different buying moments. On the DTC side, we've seen strength in our emerging corporate sales business and are excited about the opportunity to scale customization to support both the customer and corporate demand.

In closing, I want to take a quick moment and highlight a particularly important event for the company, our recent YETI roundup in April. Once a year, we bring together our global team at our Austin headquarters for a week of immersion, learning and connection. It is a powerful way to stoke the brand and keep connected to our growing global team. I always come away from this week energized and with an incredible appreciation for our team and what they are creating here at YETI. Importantly, it solidifies my unwavering conviction in the long-term untapped growth opportunities ahead for this brand.

Before handing the call over to Mike to review our financials and outlook, I want to thank our outstanding customers, partners and friends who show up for YETI every day at every launch and in every new market we enter. This is what drives us forward.

Now, I will turn the call over to Mike.

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Michael McMullen

Senior Vice President, Chief Financial Officer & Treasurer, YETI Holdings, Inc.

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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

Thanks, Matt, and good morning, everyone. I'll start with a few comments on the impact of certain strategic actions on our GAAP results, which are excluded from our non-GAAP results. I'll then provide an overview of our performance in Q1 across our non-GAAP measures. Finally, I will give some details on our updated fiscal 2024 outlook before opening it up for your questions.

Our GAAP results for the first quarter of 2024 include the impact of two items that I would call out for you all this quarter. One, transition costs associated with our recent acquisitions including the impact of purchase accounting on our gross margins. And two, costs associated with the closure of our Vancouver design center.

While we were pleased with the work that our team in Vancouver was delivering, the acquisition of Mystery Ranch provided an opportunity to consolidate this work into one location in Bozeman, Montana. The impact of these and other items is excluded from our non-GAAP results. Per our normal practice, our results discussed on this call will be on an adjusted non-GAAP basis in order to better focus on the operational performance of the company during the period.

Now moving on to the details of the quarter. First quarter sales increased 13% to $341 million. As Matt detailed, our strong performance was balanced across categories, channels and geographies. These results include the initial contributions from Mystery Ranch and $2 million of gift card redemptions related to remedies offered to customers impacted by the product recall. We are pleased with the progress we have made to integrate our recent acquisitions and they are on track to generate approximately 200 basis points of top line growth for YETI in 2024.

By category, Drinkware sales increased 13% to $215 million. Our performance was driven by a number of factors including a portfolio of over 50 products that we continue to expand, exceptional growth outside the United States and continued strong customer demand for color and customization on a global basis.

Here are a few specific examples of products that drove our growth in Q1. We launched a new lineup of three stackable tumblers that offer our customers the same great performance with added functionality such as improved space saving, handfit and cupholder compatibility. The products that we launched last Q4 continued to gain traction, including our smaller coffee specialty sizes, our 42-ounce straw mug and our cocktail shaker. We had a great quarter in bottles driven by the wide range of sizes, materials and lid options that we offer our customers. And we remain excited by the growth of our tabletop and barware offerings such as the beverage bucket and wine chiller.

Coolers & Equipment sales increased 15% to $120 million. Both hard coolers and soft coolers posted growth for the period. We are excited to now have our full assortment of products available in the market, including in seasonal colors. And we continue to add to this product lineup with the recent innovation in hard coolers that Matt mentioned. While we do continue to expect to see some pressure on higher price point items as we go through this year, we believe we are in strong position to win in Coolers as we head into the peak summer months.

Beyond Coolers, we saw strong organic performance from our legacy YETI bags lineup led by our Panga waterproof line and the expansion of our SideKick Dry gear case line. The category also benefited from the inclusion of Mystery Ranch, which was on plan for the quarter. From a channel perspective, direct-to-consumer sales grew 12% to $188 million representing 55% of total sales driven by growth in both Drinkware and C&E. Additionally, we drove solid growth across each of our D2C channels during the period including e-commerce, corporate sales and Amazon.

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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

While still a relatively small contributor, we were also pleased with the growth of YETI retail. As Matt mentioned, we are modestly accelerating our new store plans this year as we look to expand our reach and provide more opportunities for consumers to experience the full breadth of our product assortment. Wholesale sales increased 13% to $154 million driven by growth in both C&E and Drinkware. Importantly, sell-through for both product categories was positive and our channel inventory levels remain in good position.

Outside the US, sales grew 32% to $66 million representing 19% of total sales driven by outsized growth in Europe and Australia. The opportunity outside the United States remains significant as we look to drive brand awareness, expand our wholesale footprint and leverage our full set of D2C capabilities.

Gross profit increased 22% to $196 million or 57.5% of sales compared to 53% in the same period last year. Positive drivers of this 450 basis point increase include 370 basis points from lower inbound freight and 190 basis points from lower product costs. These gains were partially offset by 60 basis points from higher customization costs given the continued growth of our custom business, 20 basis points from strategic price decreases on certain hard coolers that we implemented during the quarter and 30 basis points from all other impacts.

SG&A expenses for the quarter increased 13% to $157 million and remained flat at 45.9% of sales. Non-variable expenses increased 10 basis points as a percent of sales, offset by variable expenses decreasing 10 basis points as a percent of sales. Within non-variable, higher employee costs and marketing expenses were offset lower warehousing costs.

Operating income increased 82% to $40 million or 11.6% of sales, an increase of 440 basis points over the 7.2% that we reported in the prior-year period. Net income increased 89% to $29 million or $0.34 per diluted share compared to $0.18 in the prior-year period.

Turning to our balance sheet, we ended the quarter with $174 million in cash compared to $168 million in the year-ago period. The decline in cash on a sequential basis was driven by our accelerated share repurchase agreement, the acquisitions of Mystery Ranch and Butter Pat and the normal seasonality of our cash and working capital.

Inventory increased 5% year-over-year to $364 million. We expect yearend inventory to generally grow in the range of sales, but there may be quarters this year where it grows at a faster rate than sales as we build inventory ahead of new product launches. Total debt, excluding unamortized deferred financing fees and finance leases, was $81 million compared to $84 million at the end of last year's first quarter. During the quarter, we made a principal payment of $1 million on our term loan.

Now, turning to our fiscal 2024 outlook. We continue to expect full year sales to increase between 7% and 9% compared to fiscal 2023's adjusted net sales, inclusive of approximately 200 basis points of contribution from our two acquisitions. As we previously indicated, we expected the stronger growth rate in the first quarter. Looking ahead, we continue to expect relatively balanced growth across the upcoming quarters with Q2 planned slightly below our growth rate in the second half of this year.

There are a number of compare dynamics to consider this year, including gift card redemptions, which we will start to compare against in Q2. The largest impact from prior-year gift card redemptions will be in the second quarter when we saw $12.5 million worth of redemptions in the prior-year quarter.

We are reiterating our expectations for growth across channels, categories and geographies. By channel, we expect balanced growth between wholesale and D2C. By category, Coolers & Equipment is expected to outpace

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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

Drinkware, given both the return of our full soft cooler lineup and the incremental sales of Mystery Ranch products. And we expect international growth of between 20% and 25% compared to domestic growth in the mid- single-digit range.

As a final comment on sales, consistent with last quarter, we continue to take a prudently conservative approach to how we plan the remainder of the year.

Moving down the P&L. Supported by our strong performance in the first quarter, we are increasing our 2024 gross margin target to approximately 58% compared to our original target of approximately 57.5% and up from 56.9% last year. This increase is due to slight benefits across a number of drivers within our gross margin line versus one single factor. The ongoing recovery of inbound freight costs remains the largest driver of our year-over-year gross margin expansion this year. But we do continue to see some offsetting rate pressure due to the Red Sea conflict.

From a phasing perspective, we expect margin expansion to start to ease in Q2 versus the significant increases we have seen over the past four quarters. As we move into the second half of the year, we expect to have largely comped the benefit of lower inbound freight costs. Thus, our gross margins in the second half will be much more in line with the prior year. But over the long term, we still see opportunities to continue to expand our gross margins through drivers such as sales mix, product cost savings and other supply chain efficiencies.

With the increase in our gross margin outlook, we are also raising the high end of our operating income outlook. We now expect adjusted operating margin of between 16% and 16.5%, up from our prior outlook of approximately 16% and compared to 15.6% in fiscal 2023. On a quarterly basis, we expect operating income growth to be roughly in line with sales growth.

As we have discussed previously, we will continue to use a portion of our gross margin upside to incrementally invest in our business. These investment areas include our global expansion efforts, our D2C business and support for inorganic opportunities. Therefore, while full-year SG&A is expected to grow at the high end of our sales range, the timing of investments may drive some variability in our SG&A growth rate on a quarter-to-quarter basis. More importantly, our focus is on delivering our top and bottom line outlook for the year and on driving top line growth over the long term.

Below the operating line, we continue to expect an effective tax rate of approximately 25.3% for the year, slightly above the 24.8% rate in 2023. As we disclosed in an 8-K filing, we entered into $100 million accelerated share repurchase agreement during Q1. That contract fully executed as of April 22. And thus, we expect full-year diluted shares outstanding of approximately 86.1 million. Due to this lower share count and raising the high end of our operating income range, we now expect adjusted earnings per diluted share to increase 11% to 16% to between $2.49 and $2.62 compared to $2.25 in fiscal 2023.

As for cash, we continue to expect capital expenditures of approximately $60 million and free cash flow of between $100 million and $150 million this year. We will remain opportunistic going forward as we look to deploy cash between M&A and further share buybacks. As a reminder, we have $200 million remaining on our most recent share buyback authorization.

In summary, we were pleased with our first quarter execution. We delivered balanced top line growth across the business, continued to improve our profitability, made progress on the integration of our recent acquisitions and delivered on key pieces of our capital allocation strategy. At the same time, we are mindful of the relative size of the first quarter and some ongoing uncertainties in the overall market. Thus, some caution continues to be

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YETI Holdings, Inc. (YETI)	Corrected Transcript
Q1 2024 Earnings Call	09-May-2024

reflected in our updated full year outlook. But we will also remain opportunistic as we go forward, making investments and taking actions that support our long-term growth ambitions and drive value to our shareholders.

Now I would like to turn the call back over to the operator to take your questions.

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QUESTION AND ANSWER SECTION

Operator: Thank you. We will begin the question-and-answer session. [Operator Instructions] At this time, we will take a question from Joe Altobello from Raymond James. Joe, please go ahead.

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Martin Mitela

Analyst, Raymond James & Associates, Inc.

Q

Good morning. This is actually Martin on for Joe. I was wondering if we can get an update on overall demand trends, particularly in hard coolers, and just any explanation that might be driving them, whether it's affordability, competition, saturation or some combination of all of the above.

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Michael McMullen

Senior Vice President, Chief Financial Officer & Treasurer, YETI Holdings, Inc.

A

Yeah. Good morning, Martin, and thank you for the question. So I think, first of all, we were pleased to return to growth in both soft and hard coolers. And soft coolers, obviously, was related to having the recalled product back in our lineup. But in hard coolers, there was an element of a sell and compare in wholesale. But at the same time, during Q1, we were also comping against the EOL transition promo that was an issue in Q4 that we called out.

But like we mentioned in our prepared remarks, we saw growth in C&E on both a sell-in and a sell-through basis. But I think the key point is that Q1 is our smallest quarter and there's a seasonality aspect in Coolers to consider. But as we look forward, as we enter the seasonally higher period, we think we're in a really good position to win in Coolers. We've got our entire assortment back in the market of soft coolers and we've got new innovation coming in hard coolers.

We do believe there's some sensitivity to higher price point items in the market that still exist. But for the demand that is in the market, we believe we're in a really great position to go win it. From a competitive standpoint, I think like we've said all along, we've had competitors in all categories for years. We believe we've got the best products in the market and we're in a good position to win.

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Martin Mitela

Analyst, Raymond James & Associates, Inc.

Q

Great. And just kind of on a last thought about softness on high end items, has the targeted price cuts on certain Roadie and Tundra products helped to spur demand? And should we anticipate any additional pricing actions as well as any future innovation? Will that be at a lower price point just to combat affordability?

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Michael McMullen

Senior Vice President, Chief Financial Officer & Treasurer, YETI Holdings, Inc.

A

Yeah. So just to touch on the second question, we introduced, as Matt called out - we talked about two new products, a lower price point or our lowest price point wheeled cooler and then a new entry point hard cooler for the category. I wouldn't say that's being done in response to anything happening in the market. This is us just

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