Hi Traders! It's a beautiful fall day in Nashville as I write this outside on our back porch. The leaves are starting to change to bright orange and I am amped to be bringing you this IPO right before it hits the market for the first time. I think many of you are really going to like this one. I am positive either you have one of their products or you have at least seen someone who owns them. Today we are looking at YETI!
Yeti is based in Austin, Texas and is well known for it's high end outdoor lifestyle products that include ice chests, vacuum-insulated stainless-steel drinkware, soft coolers, and related accessories. Their most popular product that you have probably seen everywhere is their stainless steel insulated drink tumbler. It gained huge popularity on the market several years ago and has been a enormous hit for not just outdoor enthusiasts but just about anyone who enjoys beverages. Yeti was founded back in 2006 and currently employs over 500 people!
Yeti focuses on outdoor branded products which they sell worldwide. Right now they sell their goods in a whopping 6,000 retailers that include mostly outdoor company brands. Just to name a few you have: West Marine, Bass Pro, Cabelas, REI, Dick's Sporting Goods, Ace Hardware, and many more. Not to mention their own online store. Prices for the smaller tumblers are anywhere from around $25 to their large high end coolers which can go for over $1,300 a piece! That silver tumbler introduced just a few years ago really plastered the brand into the general publics brain as it was well known for using pretty "new" technology to keep cold drinks cool, and hot drinks hot, for literally 5 hours + at a time, even in extreme conditions. This skyrocketed their success. "YETI's sales have increased from $147.7 million in 2015 to $468.9 million in 2016." Revenue at the end of 2017 was $639 million. So they have seen quite a bit of success and have put their name on the map.
Competition flew in quick soon after they gained success, as many companies tried to mimic the vacuum sealed insulated coolers and tumblers at a lower price point. Remember those "cups" are around $35! However at this point, Yeti has created its edge by establishing itself as a name brand. Similar to those who buy Coach purses, or Sperry brand shoes. They are a brand that people will buy for brand names sake. There definitely are "dupes" out there at the Walmart's of the world that perform closely to what Yeti does, however the quality doesn't compare in the long run. Beyond that, there are many other companies out there that sell items like coolers, clothing, tumblers, and similar items. So for those people who want to find a deal on like products, they are out there at the REI's and Dick's Sporting goods like companies. But for those who love Yeti for it's quality, style and name, they will always have a loyal purchasing base.
This is normally where we go ahead and analyze the stock price. But since the IPO hasn't hit yet we are simply going to look at what we should do. Yeti's expected IPO price is in the $19.00 to $21.00 range. Twenty million shares will be offered. Lockup period is 180 days. I personally will probably wait to trade this one. I would like to see some price action and patterns before I start trading it! And maybe when I start to see that I will come back up update this article!
Thanks for taking time out of your busy day to look into YETI's IPO with me! I am excited to see what it does in the coming months! If you have any IPO suggestions you would like me to look into, please send it to email@example.com
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