YETI is a manufacturer of goods for outdoor activities: mobile refrigerators, thermos flasks, backpacks, folding chairs, etc. The company's products are in great demand among US football fans who arrange traditional picnics at gas stations before games. With the opening of the economy, sales began to grow again, which had a positive impact on the shares: they have risen in price by more than 40% since the beginning of the year.
The company is actively developing. If 15 years ago the main customers were fishermen and hunters, now the audience has become noticeably wider: athletes, musicians, party participants, snowboarders, rock climbers and many others. YETI relies on millennials and conducts an appropriate marketing campaign.
Among the "bullish" factors, it is worth noting the expansion of the direct sales channel. Thanks to active advertising in social networks, the company managed to increase direct sales by 50% y/y, as a result of which they now account for about half of the total revenue. At the same time, trade intermediaries are also increasing the volume of sales of products.
In February, YETI launched a new collection of bags, backpacks and duffel bags – high-margin goods whose sales can become an additional incentive for revenue growth. The company's products are extremely popular in the South and Midwest of the United States, while expansion into other regions is just beginning, which should also have a positive impact on income. The development of online sales and the focus on increasing the presence in social media will contribute to the effective development of new markets.