Yeti Holdings Inc. reported sales grew a less-than-expected 4 percent in the second quarter due to a more promotional drinkware category, caution from consumers and retail partners, and inventory constraints driven by supply chain transitions, but earnings easily topped expectations and the cooler specialist raised its EPS guidance for the year.

Sales reached $445.9 million, below analysts’ consensus target of $461.72 million.  Earnings were 66 cents per share, beating analysts’ consensus estimate 54 cents per share.

Matt Reintjes, president and chief executive officer, commented, “We are making excellent progress on our long-term strategic priorities—accelerating innovation, expanding our global brand, and diversifying our supply chain. We are seeing these strategies play out in the market with momentum in product innovation and diversification across our portfolio with notable strength in bags, our global expansion with exceptional performance in the UK and Europe and strong end user demand in Canada and Australia, and the transformational shift in our supply chain. Our brand continues to expand, connecting both domestically and, importantly, globally. Amidst a disruptive macroeconomic environment, we are positioning Yeti to deliver long-term, sustainable top and bottom-line growth supported by a strong financial foundation. Our strong balance sheet and robust free cash flow generation are enabling investment in growth initiatives while also advancing our capital allocation priorities, including share repurchases. We exited the second quarter with encouraging momentum across our key growth drivers, and we are seeing signs of continued improvement in the third quarter, reinforcing our confidence in the trajectory ahead.”

Second Quarter 2025 Results

  • Sales and adjusted sales both decreased 4 percent to $445.9 million, compared to $463.5 million during the same period last year.
      • Direct-to-consumer (“DTC”) channel sales decreased 1 percent to $248.6 million, compared to $250.4 million in the prior year quarter.
      • Wholesale channel sales decreased 7 percent to $197.3 million, compared to $213.1 million in the same period last year, due to a decline in both Drinkware and Coolers & Equipment.
      • Drinkware sales decreased 4 percent to $236.4 million, compared to $246.5 million in the prior year quarter. As expected, Drinkware growth in our international regions was more than offset by a decline in our U.S. region, reflecting a challenging market and inventory constraints driven by our supply chain transition.
      • Coolers & Equipment sales decreased 3 percent to $200.6 million, compared to $205.9 million in the same period last year. Growth in hard coolers was more than offset by a decline in soft coolers during the quarter.
      • Sales in the U.S. decreased 5 percent to $367.8 million, compared to $386.9 million in the prior year quarter.
      • International sales rose 2 percent to $78.1 million, compared to $76.6 million in the prior year quarter reflecting strong growth in Europe and our launch in Japan. This was partially offset by conservative inventory purchases and caution from our wholesale partners in other international regions against robust consumer demand.
  • Gross profit decreased 3 percent to $257.6 million, or 57.8 percent of sales, compared to $264.3 million, or 57.0 percent of sales, in the second quarter of 2024. The 80 basis points increase in gross margin was primarily due to lower product costs, selective price increases implemented in the second quarter of 2025 and the absence in the current year quarter of purchase accounting inventory step-up amortization, partially offset by higher tariff costs.
  • Adjusted gross profit decreased 4 percent to $257.6 million, or 57.8 percent of adjusted sales, compared to $267.5 million, or 57.7 percent of adjusted sales, in the second quarter of 2024. The 10 basis points increase in adjusted gross margin was primarily due to lower product costs and selective price increases implemented in the second quarter of 2025, partially offset by higher tariffs.
  • Selling, general, and administrative (“SG&A”) expenses decreased 1 percent to $195.5 million, compared to $196.9 million in the second quarter of 2024. As a percentage of sales, SG&A expenses increased 140 basis points to 43.9 percent from 42.5 percent in the prior year period. This increase was primarily due to higher technology expenses related to our growth investments.
  • Adjusted SG&A expenses decreased 2 percent to $184.4 million, compared to $187.5 million in the second quarter of 2024. As a percentage of adjusted sales, adjusted SG&A expenses increased 80 basis points to 41.3 percent from 40.5 percent in the prior year period. This increase was primarily due to higher technology expenses related to our growth investments, partially offset by lower employee costs.
  • Operating income decreased 8 percent to $62.0 million, or 13.9 percent of sales, compared to $67.4 million, or 14.5 percent of sales during the prior year quarter.
  • Adjusted operating income decreased 9 percent to $73.2 million, or 16.4 percent of adjusted sales, compared to $80.0 million, or 17.3 percent of adjusted sales during the same period last year.
  • Other income increased to $5.8 million compared to other income of $0.4 million in the second quarter of 2024, primarily due to higher foreign currency gains related to intercompany balances in the current year.
  • Net income increased 1 percent to $51.2 million, or 11.5 percent of sales, compared to $50.4 million, or 10.9 percent of sales in the prior year quarter; Net income per diluted share increased 3 percent to $0.61, compared to $0.59 in the prior year quarter.
  • Adjusted net income decreased 7 percent to $55.2 million, or 12.4 percent of adjusted sales, compared to $59.6 million, or 12.9 percent of adjusted sales in the prior year quarter; Adjusted net income per diluted share decreased 6 percent to $0.66, compared to $0.70 per diluted share in the prior year quarter.

Six Months Ended June 28, 2025 Results

  • Sales and adjusted sales both decreased 1 percent to $797.0 million, compared to $804.9 million in the prior year period.
    • DTC channel sales increased 2 percent to $444.8 million, compared to $438.2 million in the prior year period, primarily due to growth in Coolers & Equipment.
    • Wholesale channel sales decreased 4 percent to $352.2 million, compared to $366.7 million in the same period last year, primarily due to a decline in Drinkware, partially offset by growth in Coolers & Equipment.
    • Drinkware sales decreased 4 percent to $442.0 million, compared to $461.1 million in the prior year period. Drinkware growth in our international regions was more than offset by a decline in our U.S. region, reflecting a challenging market, and inventory constraints driven by our supply chain transition.
    • Coolers & Equipment sales increased 5 percent to $340.8 million, compared to $325.8 million in the same period last year, primarily driven by strong performance in bags and hard coolers, partially offset by a decline in soft coolers.
      \Sales in the U.S. decreased 4 percent, to $639.0 million, compared to $662.7 million in the prior year period. International sales increased 11 percent, to $158.0 million, compared to $142.2 million in the prior year period reflecting strong growth in Europe, Canada and our launch in Japan. The 11 percent increase in international sales included an FX headwind of approximately 260 basis points.
  • Gross profit increased to $459.3 million, or 57.6 percent of sales, compared to $459.1 million, or 57.0 percent of sales, in the prior year period. The 60 basis points increase in gross margin was primarily due to lower product costs, the absence in the current year quarter of purchase accounting inventory step-up amortization, and selective price increases implemented in the second quarter of 2025, partially offset by higher tariff costs and lower mix of our Drinkware category.
  • Adjusted gross profit decreased 1 percent to $458.9 million, compared to $463.9 million, in the prior year period. Adjusted gross margin was flat at 57.6 percent, compared to the prior year period. Lower product costs and selective price increases implemented in the second quarter of 2025 were offset by higher tariff costs and lower mix of our Drinkware category.
  • SG&A expenses increased 3 percent to $375.6 million, compared to $365.9 million in the prior year period. As a percentage of sales, SG&A expenses increased 160 basis points to 47.1 percent from 45.5 percent in the prior year period. This increase was primarily due to higher technology expenses related to our growth investments, and higher employee costs related to non-cash stock-based compensation.
  • Adjusted SG&A expenses increased 2 percent to $350.5 million, compared to $344.3 million in the prior year period. As a percentage of adjusted sales, adjusted SG&A expenses increased by 120 basis points to 44.0 percent from 42.8 percent in the prior year period. This increase was primarily due to higher technology expenses, related to our growth investments.
  • Operating income decreased 10 percent to $83.7 million, or 10.5 percent of sales, compared to $93.2 million, or 11.6 percent of sales during the prior year period.
  • Adjusted operating income decreased 9 percent to $108.4 million, or 13.6 percent of adjusted sales, compared to $119.6 million, or 14.9 percent of adjusted sales during the same period last year. The 9 percent decrease in adjusted operating income included an FX headwind of approximately 210 basis points.
  • Other income of $7.1 million compared to other expense of $3.7 million in the prior year period, primarily due to foreign currency gains related to intercompany balances in the current year period versus foreign currency losses on intercompany balances in the prior year period.
  • Net income increased 2 percent to $67.8 million, or 8.5 percent of sales, compared to $66.3 million, or 8.2 percent of sales in the prior year period; Net income per diluted share increased 5 percent to $0.81, compared to $0.77 in the prior year period.
  • Adjusted net income decreased 9 percent to $81.0 million, or 10.2 percent of adjusted sales, compared to $88.9 million, or 11.0 percent of adjusted sales in the prior year period; Adjusted net income per diluted share decreased 6 percent to $0.97, compared to $1.03 per diluted share in the prior year period. Adjusted net income per diluted share included an FX headwind of approximately $0.02 or 220 basis points of growth.

Balance Sheet and Liquidity Review

  • Cash was $269.7 million, total debt, excluding finance leases and unamortized deferred financing fees, was $75.9 million, and our $300 million Revolving Credit Facility remained undrawn as of the end of the second quarter of 2025.
  • Inventory decreased 10 percent to $342.1 million, compared to $378.3 million at the end of the prior year quarter.

Capital Allocation Update

Pursuant to our existing $450 million share repurchase authorization, in the second quarter of 2025, we repurchased approximately 745,000 shares of Yeti’s common stock on the open market for $23.0 million. Based on our current expectations, we anticipate completing approximately $200 million in share repurchases during 2025. In addition, in August 2025, we acquired certain assets, including designs, tooling, and intellectual property, related to a shaker bottle for $38 million in cash.

Updated 2025 Outlook

Reintjes concluded, “Our confidence in the business and the underlying operating fundamentals supporting our full-year outlook remains unchanged. I’m particularly pleased with the execution on our ongoing supply chain transition which will meaningfully diversify our footprint and capabilities, positioning us for continued expansion and innovation driving long-term success. We are modestly lowering our top-line expectations to reflect a slightly more prolonged recovery in drinkware in the U.S. At the same time, we are raising our EPS outlook, primarily due to our strong operating execution and reflecting tariff reduction on China-sourced products, partially offset by increased tariffs on imports from other regions. As we look to the second half of 2025, we remain incredibly excited about the innovation we have planned, the continued strength and momentum of our brand, and the global opportunities we see in front of us.”

For Fiscal 2025, a 53-week period, compared to a 52-week period in Fiscal 2024, Yeti expects:

  • Adjusted sales to be flat to up 2 percent (versus previous outlook of between 1 percent and 4 percent) including an approximately 300 basis point unfavorable impact from supply chain disruptions;
  • Adjusted operating income as a percentage of adjusted sales between 14.0 percent and 14.5 percent (versus previous outlook of 12.0 percent). This outlook reflects an approximate 220 basis point net impact from higher tariff costs versus the prior year;
  • An effective tax rate of approximately 25.5 percent (versus previous outlook of 26.0 percent; compared to 24.5 percent in the prior year period);
    Adjusted net income per diluted share between $2.34 and $2.48 (versus previous outlook of between $1.96 and $2.02) including an approximately $0.40 net unfavorable impact from higher tariff costs;
  • Diluted weighted average shares outstanding of approximately 82.0 million (versus previous outlook of 83.7 million);
  • Capital expenditures of approximately $50 million (versus previous outlook of $60 million), primarily to support investments in technology, new product innovation, and our supply chain; and
  • Free cash flow between $150 million and $200 million (versus previous outlook of between $100 million and $125 million).