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YETI Cancels IPO

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Austin-based Yeti Holdings Inc. has reversed course on a planned initial public offering of stock.

In a letter to the U.S. Securities and Exchange Commission, Yeti CEO Matthew Reintjes says the decision is the result of “market conditions.”

The letter, which asks the SEC to return all correspondence related to the IPO, gives no indication of if or when Yeti might choose to again pursue an IPO.

guess you could say the YETI IPO has been put on ice 

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I have no clue about YETI’s financials. They seem to have exploded in size. Do they have positive free cash flow?

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The letter, which asks the SEC to return all correspondence related to the IPO, gives no indication of if or when Yeti might choose to again pursue an IPO.

Do they get to keep the stickers?

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1 minute ago, Royalfan5 said:

A high priced durable good that fills a somewhat small niche has to be kind of a bitch to keep going, doesn’t it?

But those trucker hats tho.

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They needed to keep their focus on getting more streets around their headquarters shut down. 

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They saw a market need and they fulfilled it and executed spectacularly.  They went upmarket and successfully sold their product at a huge premium over cost.  They marketed a lifestyle their product represents and they made a fucking fortune.  Good for them.

Unfortunately they have no IP that keeps competitors from making equivalent products for 1/2 price. Most unfortunately for them, their branding became associated with broke dick shit bags with yeti stickers on their 2007 f250 with truck nuts.  

 

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40 minutes ago, Royalfan5 said:

A high priced durable good that fills a somewhat small niche has to be kind of a bitch to keep going, doesn’t it?

This. Seems like their ship has sailed

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2 hours ago, Grade of D as in David said:

No big deal, Rtic was just going to IPO at half the price

Of course they would - always copying Yeti. ;)

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Funny thing is though, all the accurate observations of their limited business model applied with equal force six months or a year ago, which begs the question, what the hell were they thinking?

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1 hour ago, tx 3 putt said:

does this kill the value of my yeti sticker collection ?

If it comes with a Salt Life and Costa sticker in the pack, it's worth tree fiddy...pesos.

 

 

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7 minutes ago, TwiceHorn said:

Funny thing is though, all the accurate observations of their limited business model applied with equal force six months or a year ago, which begs the question, what the hell were they thinking?

Irrational exuberance is a hell of a business driver.

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4 minutes ago, Surly Bevo said:

Irrational exuberance is a hell of a business driver.

And I guess a big payday for the C-Suite, if they think the market will not tank them.  But the long-term prospects for a public Yeti seem grim as hell.

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20 minutes ago, TwiceHorn said:

Funny thing is though, all the accurate observations of their limited business model applied with equal force six months or a year ago, which begs the question, what the hell were they thinking?

They weren't thinking.  They never had the IP on the technology or the look for that matter, despite what their lawyers would tell you.

They should have cashed out 3-4 years ago.  They missed out on a ton of money.

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26 minutes ago, ZanTheFan said:

for as frequently as I use it the lowball was well worth the 20 bucks or whatever I paid for it

That’s the thing, their products really are great but how many different coolers and cups do you need?  At some point the market is going to stagnate and when you’ve sold X many to your target demo with disposable income while other less affluent prospects have other options that do 80% of the work at 50% of the price your really just selling and brand to 90% of your buyers as only about 10% (probably less than that) truly need a cooler that keeps ice for 72 hours.  Unless they can innovate and come up with another reason for people to replace their $500 cooler with a newer model they’ll never strike it rich.  They can be a successful small company cracking out a limited run of their niche product set each year but their shot at a big payday has passed.

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41 minutes ago, ZanTheFan said:

for as frequently as I use it the lowball was well worth the 20 bucks or whatever I paid for it

Same. It's my favorite cup at the house. 

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1 minute ago, TKthunder2 said:

That’s the thing, their products really are great but how many different coolers and cups do you need?  At some point the market is going to stagnate and when you’ve sold X many to your target demo with disposable income while other less affluent prospects have other options that do 80% of the work at 50% of the price your really just selling and brand to 90% of your buyers as only about 10% (probably less than that) truly need a cooler that keeps ice for 72 hours.  Unless they can innovate and come up with another reason for people to replace their $500 cooler with a newer model they’ll never strike it rich.  They can be a successful small company cracking out a limited run of their niche product set each year but their shot at a big payday has passed.

fair points, all

why can't they be the next Rolex though? Rolex may not be a perfect example, of course - but I'm thinking of a lifestyle brand built around a product that doesn't have much room for innovation and they come to mind

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14 minutes ago, ZanTheFan said:

 I'm thinking of a lifestyle brand built around a product that doesn't have much room for innovation and they come to mind

Because lifestyle brands are defined by the people that purchase and engage with them.  The fact that a watch is a largely superfluous item and a Rolex costs many thousands of dollars means Rolex can at least control that their brand represents wealth and a lifestyle associated with wealth.  

Yeti is an "aspirational" purchase that can be had for ~$200.  Sure, its a lot for a cooler, but its only out of the buying power of the poorest of poor people. In the end, the most enthusiastic purchasers are mildly poor people who can convince themselves and others that they are rich by purchasing a $200 "luxury" cooler.  

It is easily the cheapest "I'm rich" purchase anyone can make. The most ardent brand proponents and advocates, and the image the public associates with Yeti is the image of faux wealth.

They make a fine product.  They were the first to market, they deserve to make a lot of money.  Unfortunately, others make and sell a functionally identical product for much less and the nature of the business dictates that any attempt at branding a "luxury" cooler will result in the brand eventually being overtaken by the pathetic cheese dick shitheads that we all think of when we think of Yeti.

Edited by JimmyGlass

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7 hours ago, Royalfan5 said:

A high priced durable good that fills a somewhat small niche has to be kind of a bitch to keep going, doesn’t it?

Yeah.  i hope they catch their tears in their $50 buckets. 

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7 hours ago, South Austin said:

But those trucker hats tho.

exactly, don't sell the product, sell the swag.  it's the ferrari model.

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Do people still buy them?  Igloo is just as good and I don't mind throwing mine around.  I never got Yeti at all so I may not be the target audience. 

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5 hours ago, Homercles said:

Yeah.  i hope they catch their tears in their $50 buckets. 

I’ve seen ads where they suggest issuing the 50 dollar buckets to hold stuff while you work cattle, as if the average guy didn’t already have a bunch of buckets just sitting around already

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I have a few Yeti tumblers, a couple as gifts, and they're pretty fantastic. But I could never bring myself to spend so much money on one of their coolers when my Coleman has more space for way less money and does the trick. 

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7 hours ago, JimmyGlass said:

Because lifestyle brands are defined by the people that purchase and engage with them.  The fact that a watch is a largely superfluous item and a Rolex costs many thousands of dollars means Rolex can at least control that their brand represents wealth and a lifestyle associated with wealth.  

Yeti is an "aspirational" purchase that can be had for ~$200.  Sure, its a lot for a cooler, but its only out of the buying power of the poorest of poor people. In the end, the most enthusiastic purchasers are mildly poor people who can convince themselves and others that they are rich by purchasing a $200 "luxury" cooler.  

It is easily the cheapest "I'm rich" purchase anyone can make. The most ardent brand proponents and advocates, and the image the public associates with Yeti is the image of faux wealth.

They make a fine product.  They were the first to market, they deserve to make a lot of money.  Unfortunately, others make and sell a functionally identical product for much less and the nature of the business dictates that any attempt at branding a "luxury" cooler will result in the brand eventually being overtaken by the pathetic cheese dick shitheads that we all think of when we think of Yeti.

I'd say there are plenty of people wearing Rolexes who can't afford them - but I get your point and don't disagree w/anything you said

You're focused on the aspirational angle, which is interesting. Isn't it possible that Yeti products are simply not that big of an investment for middle class, white collar folks who'd rather be out fishing/hunting/camping/etc. -- aren't these the people Yeti is ultimately targeting? Lots of money to be made off of these people, I'd wager. The other something maybe that gets lost is this: there are a ton of very successful companies out there that never IPO!

I have only ever purchased one Yeti product - the hopper 18 soft cooler. Anything else I own has been a gift. My justification for the purchase is that I bought it on the weekend when they were donating all proceeds to Harvey relief. Between the charity aspect and the several times I've used it since purchasing, I'm very satisfied - thing works as promised and is very durable - but I'm sure there are lower cost alternatives if I cared enough to investigate.

At the end of this - I'm fascinated by Yeti and want to see these guys do well. I don't have a horse in the race - I just respect the hell out of people who can invent the better mouse trap and market the shit out of it.

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3 hours ago, Hefeweizen said:

Do people still buy them?  Igloo is just as good and I don't mind throwing mine around.  I never got Yeti at all so I may not be the target audience. 

My main sticking point is if a cooler is too valuable to leave unattended at a campsite or in the back of a truck, it is worthless.  As a result, I'd rather buy an Igloo that I don't care if it gets stolen.  The RTIC tumblers are perfect also.

Edited by CooterBrown

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their marketing is awesome

but the reality is their marketing outstrips their use case. 

they have crazy tech for guys that go hunting for 5 days remote and need supplies to last that long. that is a small demographic of cooler use i would assume

regardless, here is some cool ruler to ensure properness

 

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12 hours ago, Aqua Buddha said:

They weren't thinking.  They never had the IP on the technology or the look for that matter, despite what their lawyers would tell you.

They should have cashed out 3-4 years ago.  They missed out on a ton of money.

Valid point.  They have 108 design patents, mostly dealing with the tumblers and other peripheral products.  The cooler isn't unique looking (probably some abandoned ones there).  They have a handful of utility patents that look to be not much more than wrinkles on the technology.

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9 hours ago, ZanTheFan said:

fair points, all

why can't they be the next Rolex though? Rolex may not be a perfect example, of course - but I'm thinking of a lifestyle brand built around a product that doesn't have much room for innovation and they come to mind

Thing is, though, Rolex built the brand in the early-mid 20th century with innovation.  The Oyster ("water proof" case), Twinlock/Triplelock Crown, and Perpetual self-winding were all Rolex. And, at that time, while they were recognized as top-quality, they weren't all that (or any) more expensive than other watches with equivalent features.

Rolex parlayed that quality image and distinctive looks into a lifestyle brand later on.  And they have been aggressive and successful with IP protection, even after their patents expired.

Yeti could take a cue from that.  But it still strikes me that coolers are even nichey-er than watches.

Edited by TwiceHorn

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12 hours ago, TwiceHorn said:

And I guess a big payday for the C-Suite, if they think the market will not tank them.  But the long-term prospects for a public Yeti seem grim as hell.

Goddamnit.  I was going to sell my Enron stock so I could go all-in on Yeti.

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15 hours ago, JimmyGlass said:

They saw a market need and they fulfilled it and executed spectacularly.  They went upmarket and successfully sold their product at a huge premium over cost.  They marketed a lifestyle their product represents and they made a fucking fortune.  Good for them.

Unfortunately they have no IP that keeps competitors from making equivalent products for 1/2 price. Most unfortunately for them, their branding became associated with broke dick shit bags with yeti stickers on their 2007 f250 with truck nuts.  

 

I resemble that remark!

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If they could take about 20lbs off their hard side coolers that'd be great plus "Certified Bear Resistant!"

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I think they will be fine as long as they continue to dictate the direction of the market.  Their new "Panga" looks nice.  I'd love to have one and I'd use the crap out of it at the ranch and travelling.  I have a bro-hat.  Multiple cups, etc.  I can see them divesting into more luggage and dedicated outdoor apparel (like Oakley).

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They didn't even invent the high end durible cooler market. Frigid-Rigid has been making fiberglass shelled coolers for sport fishers and high end center consoles forever. I have a roto-molded Icy Tek I bought for my skiff in 2003 that is still awesome and works every bit as well as a Yeti. They are an Aussie company and were originally built for commercial fishing boats, so the finish isn't as nice as a yeti, but I paid $100 for a 45 qt in 2003 and it will keep a 20lb bag of ice for a 3 day fishing trip. Looking on line, it looks like they've moved up market, too as the 45 is now within $50 of a Yeti. I think Yeti just caught the Bro-Culture lightening in a bottle for a while.

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