Yeti stock gains after profit beat and raised outlook, while sales miss due to recall reserve adjustment

Shares of Yeti Holdings Inc.
YETI,
-1.40%
hiked up 1.9% in premarket trading Thursday, after the the maker of drinkware, coolers and outdoor products missed second-quarter revenue expectations but beat on profit and raised its full-year outlook. Net income fell to $38.1 million, or 44 cents a share, from $46.3 million, or 53 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 57 cents beat the FactSet consensus of 47 cents. Sales slipped 4.2% to $402.6 million, below the FactSet consensus of $411.5 million, as a recall reserve adjustment negatively impacted sales by $24.5 million. Yeti initiated in March voluntary recalls of some Hopper coolers and SideKick Dry gear cases. Drinkware sales rose 8% to $233.4 million while coolers and equipment sales dropped 19% to $156.6 million. For 2023, the company raised its guidance ranges for adjusted EPS to between $2.23 and $2.32 from between $2.12 and $2.23. The stock has shed 8.2% over the past three months through Wednesday while the S&P 500
SPX,
-0.70%
has gained 8.0%.