Yeti remains bullish on the company’s global expansion potential, with international sales growing a record 60% in the third quarter to account for 13% of the company’s sales mix.
To support this expansion, the company launched updated e-commerce sites in Australia and New Zealand, and it added Fulfilled by Merchant capabilities on Amazon in Canada.
“It's more we're now back into a position where we have full strength, and we can then apply our marketing, our merchandising, our brand building on top of it,” Reintjes said.
DTC As an Inventory Lever
DTC plays a valuable role in Yeti’s ability to balance inventory across channels, and the channel is currently reaping the rewards of operational and inventory availability decisions made last year during the constrained environment. In addition to strong retention rates on Yeti.com, it’s also doing well in reactivating older cohorts of customers, Mike McMullen, the company’s interim CFO, said.
And while Yeti’s long-term growth goal is to grow DTC faster than wholesale, it’s just one piece of the company's larger omnichannel strategy. “While [Yeti.com] is the channel that is performing very strong from a retention perspective, it's probably the channel that [is most at risk] of the inventory being redistributed among our envelope,” McMullen noted.
Looking into next year, the company remains optimistic both about omnichannel and Yeti.com’s role within it. “As we go into 2023, we would expect DTC to continue to be a strong performer,” said McMullen. “We expect strong contribution from wholesale, and we expect Yeti.com to be our flagship.”