Yeti stock tumbles, sales offset by rising operating costs

Yeti shares are moving to the downside after citing a rise in operating costs for lower profits.

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DAVE BRIGGS: All right, time now for our Triple Play. All of us pick a stock in the news and on the move. Pras Subramanian filling in today. Good to have you here, brother. My play is Yeti, shares tumbling on the company's second quarter earnings. The company missed estimates and lowered guidance. And that was the key. Yeti expects full year revenue of $1.62 billion versus consensus estimates of 1.67.

Sales did increase 17% to $420 million, compared to $357 million a year ago. Their CEO, Matt Reintjes, is saying sales were slightly below our expectations primarily due to softer digital traffic and new customer acquisition trends after several years of strong growth. Their stock today, again, we said tumbling, tumbling all the way down--

BRIAN CHEUNG: Well done.

DAVE BRIGGS: --18%. Yeah, that was-- you saw what I did there.

BRIAN CHEUNG: Yeah, I get that.

DAVE BRIGGS: He saw what I did there.

BRIAN CHEUNG: Yeah, I got the reference.

DAVE BRIGGS: I appreciate that. Yeah, it's been a rough day for a quality product and a really well run company, quite frankly.

BRIAN CHEUNG: What was interesting was that they are still experiencing supply chain issues, right? And this is a challenging environment because on one hand, you know that you still might have some stuff stuck on a boat outside of the Port of Los Angeles.

But with the recession coming, these are-- I mean, this is an expensive product, right? I mean, let's not pretend that these Yeti coolers are cheap. You do wonder, well, should you continue to order more if the demand might not be there in a recession in a few months, right? That's a really challenging question for management.

DAVE BRIGGS: Of course, we're not seeing the Yeti consumer begin to cut back. You're talking about the very top of the income bracket. That we haven't seen any real recessionary fears baked in among typical Yeti clients.

PRAS SUBRAMANIAN: Well, Brian Sozzi, I found out, has a $100 tumbler from Yeti that he bought.

BRIAN CHEUNG: Those things are expensive.

DAVE BRIGGS: 100?

PRAS SUBRAMANIAN: He paid over $100 for it, and he says it's worth every penny. It keeps his water cool.

BRIAN CHEUNG: Is that the biggest one?

DAVE BRIGGS: I don't know the $100 version.

BRIAN CHEUNG: Are you familiar with the whole product line?

DAVE BRIGGS: I do have three different sizes. None of them are $100, though.

PRAS SUBRAMANIAN: He has it upstairs.

BRIAN CHEUNG: All right, we'll have to go check it out. I actually brought mine in today. So we'll have to compare tumbler sizes later on.

DAVE BRIGGS: Wow.

BRIAN CHEUNG: Let's not--

DAVE BRIGGS: This got real.