What Happened:

Shares of outdoor lifestyle products brand (NYSE:YETI) jumped 16.1% in the pre-market session after the company reported first quarter results that blew past analysts' EPS expectations. Its revenue also outperformed Wall Street's estimates. The company called out a balanced contribution from both wholesale and direct-to-consumer channels. International sales also grew to a record 19%, assisted by a re-acceleration in domestic growth. While full year revenue guidance was maintained, EPS guidance was raised. Overall, we think this was a really good quarter that should please shareholders.

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What is the market telling us:

YETI's shares are very volatile and over the last year have had 12 moves greater than 5%. But moves this big are very rare even for YETI and that is indicating to us that this news had a significant impact on the market's perception of the business.

The biggest move we wrote about over the last year was 3 months ago, when the stock dropped 14.8% on the news that the company reported fourth-quarter results and provided a full-year EPS forecast that missed Wall Street's estimates. In the quarter, revenue and EPS also fell short. Management said that "results were below our guidance, primarily as a result of more cautious and inconsistent spending on high-priced ticket items in our Coolers & Equipment category." Overall, this was a poor quarter for YETI.

YETI is down 22.4% since the beginning of the year, and at $39.17 per share it is trading 26.9% below its 52-week high of $53.60 from December 2023. Investors who bought $1,000 worth of YETI's shares 5 years ago would now be looking at an investment worth $1,377.

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