The consumer goods space is brutally competitive. You pour your heart and soul into making a good product, charge a fair price, and watch sales flow in. But if you’re too successful, you end up being undercut by someone who creates a good-enough copy of your goods and sells them for less.
That’s why brand power is so vitally important in this space. Few companies have mastered the task on par with Yeti Holdings (NYSE:YETI), the purveyor of popular mugs and coolers. The company’s gross margins of well over 55% are proof that people are willing to pay up for Yeti’s goods.
In this five-minute June 29 video, Motley fool contributors Brian Stoffel and Brian Feroldi discuss their hourlong deep dive on the company. They’ll dig into why Yeti might have trouble growing sales without lowering those margins, and the effects that could have on the company’s brand.
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View more information: https://www.fool.com/investing/2021/07/08/yetis-margins-are-excellent-heres-why-thats-a-prob/