Yeti Holdings, Inc. reported earnings declined in the first quarter due to higher tariff costs, as well as lower mix within its DTC channel and Drinkware category, but both sales and profits topped analyst targets and the company lifted its EPS guidance for the year. Sales in the quarter 8 percent, led by a 19 percent gain in wholesale sales, its best in three years.

Sales in the quarter totaled $380.4 million versus Wall Street’s consensus of $374.8 million. Adjusted EPS of 26 cents a share topped the consensus of 19 cents.

First Quarter 2026 Highlights

  • Sales increased 8 percent, driven by strong consumer demand across categories and channels
  • Wholesale sales grew 19 percent, delivering its best quarterly performance in over three years
  • U.S. sales grew 8 percent; International sales grew 9 percent
  • Coolers & Equipment sales grew 11 percent; Drinkware sales grew 5 percent
  • EPS decreased 35 percent to $0.13; Adjusted EPS decreased 16 percent to $0.26 from $0.31, inclusive of a $0.09 unfavorable net impact from incremental tariffs
  • Increased Share Repurchase Program authorization to $500 million

Update on 2026 Outlook

  • Raises the lower end of 2026 sales growth Outlook to new range of 7 percent to 8 percent, up from 6 percent to 8 percent
  • Increases 2026 adjusted operating income margin Outlook to approximately 14.6 percent, up from 14.4 percent previously
  • Raises 2026 EPS Outlook to $2.83 to $2.89, reflecting 14 percent to 17 percent growth, up from $2.77 to $2.83 or 12 percent to 14 percent growth previously

Matt Reintjes, president and chief executive officer, commented, “Our first quarter results marked a great start to 2026, building upon and accelerating our momentum from the fourth quarter. Yeti saw exceptionally strong US consumer sell-through demand across both Drinkware and Coolers & Equipment. We delivered robust top‑ and bottom‑line execution that was broad‑based across categories and channels. The response to the Yeti brand and our continued pace of innovation fueled overall double-digit sales growth in Coolers & Equipment along with a mid-single digit growth in Drinkware, including a return to growth in the US Drinkware business. Overall, our global wholesale channel grew 19 percent on the back of continued strength in consumer demand and demand from our partners for our expanding innovation. While particularly cautious ordering from our corporate partners across all global regions was a meaningful growth drag in the quarter, our results reflect the strength of our broader Direct-to-consumer channels in both Drinkware and Coolers & Equipment.”

Reintjes continued, “As we look forward, we are driving our strategic growth initiatives reaching new, large audiences of global enthusiasts, delivering core category expansion while scaling proven adjacencies and entering global markets with strong economics. The investments we’ve made over twenty years of building Yeti show up in earned, repeatable and disciplined growth supported by innovation, supply chain flexibility, and broadening global capabilities. We are incredibly excited about the opportunities in front of us.”

First Quarter 2026 Results
Sales increased 8 percent to $380.4 million, driven by broad-based performance across key product categories and channels.

Sales by Channel

  • Wholesale channel sales increased 19 percent to $183.6 million, driven by strong growth across the US and international regions, reflecting strong consumer demand.
  • Direct-to-consumer (“DTC”) channel sales were flat at $196.8 million. Consumer demand across Yeti websites, Amazon Marketplace and Yeti retail stores was strong and tracked in line with Yeti’s overall growth rate during the quarter. This strength was offset by a decline in global Corporate Sales.

Sales by Category

  • Coolers & Equipment sales increased 11 percent to $156.1 million, primarily driven by strong performance in soft coolers, bags, hard coolers, and cargo, reflecting continued strength across core and expanded categories.
  • Drinkware sales increased 5 percent to $216.9 million, as Yeti saw growth in the US and in international regions. Drinkware growth was supported by continued innovation in Drinkware product portfolio, and was unfavorably impacted by a decline in Corporate Sales.

Sales by Region

  • U.S. sales increased 8 percent to $293.1 million, driven by growth in both Coolers & Equipment and Drinkware, reflecting strong consumer demand trends. Demand was robust in the wholesale channel as well as Yeti websites, Amazon Marketplace, and Yeti retail, partially offset by a decline in Corporate Sales.
  • International sales increased 9 percent to $87.3 million, reflecting strong growth in Europe, as well as growth in Australia and Canada, and continued momentum in Japan. Strong demand in the wholesale channel as well as Amazon Marketplace was partially offset by a decline in Corporate Sales.

Profitability

  • Gross profit increased 4 percent to $210.2 million. Gross margin decreased 210 basis points to 55.3 percent. The decrease in gross margin included a 280 basis point unfavorable impact from higher tariff costs, as well as lower mix of its DTC channel and Drinkware category. These decreases were partially offset by the favorable impact of foreign currency exchange rates and lower product costs.
  • Adjusted gross profit increased 4 percent to $210.2 million. Adjusted gross margin decreased 200 basis points to 55.3 percent. The decrease in adjusted gross margin included a 280 basis point unfavorable impact from higher tariff costs, as well as lower mix of its DTC channel and Drinkware category. These decreases were partially offset by the favorable impact of foreign currency exchange rates and lower product costs.
  • Selling, general, and administrative (“SG&A”) expenses increased 10 percent to $197.8 million. As a percentage of sales, SG&A expenses increased 70 basis points to 52.0 percent, reflecting growth investments in technology and facilities, and higher employee compensation, including investments in headcount to support its international expansion, partially offset by lower non-cash stock-based compensation.
  • Adjusted SG&A expenses increased 10 percent to $183.6 million. As a percentage of sales, adjusted SG&A expenses increased 100 basis points to 48.3 percent, reflecting growth investments in facilities and technology, and higher employee compensation, including investments in headcount to support its international expansion.
  • Operating income decreased 43 percent to $12.4 million, or 3.3 percent of sales. The operating income margin of 3.3 percent reflects an approximately 230 basis point unfavorable net impact from incremental tariff costs.
  • Adjusted operating income decreased 24 percent to $26.6 million, or 7.0 percent of sales. The adjusted operating income margin of 7.0 percent reflects an approximately 230 basis point unfavorable net impact from incremental tariff costs.
  • Net income decreased 41 percent to $9.9 million, or 2.6 percent of sales, compared to $16.6 million, or 4.7 percent of sales in the prior year quarter. Net income per diluted share decreased 35 percent to 13 cents, compared to $0.20 in the prior year quarter. Net income per diluted share in the current quarter included an unfavorable net impact from incremental tariff costs of approximately $0.09.
  • Adjusted net income decreased 23 percent to $19.8 million, or 5.2 percent of sales, compared to $25.8 million, or 7.3 percent of sales in the prior year quarter. Adjusted net income per diluted share decreased 16 percent to 26 cents, compared to 31 cents in the prior year quarter. Adjusted net income per diluted share in the current quarter included an unfavorable net impact from incremental tariff costs of approximately 9 cents.

Balance Sheet and Liquidity Review

  • Yeti continued to maintain a strong liquidity position with cash of $127.8 million, total debt, excluding finance leases and unamortized deferred financing fees, of $72.8 million, and its $300 million Revolving Credit Facility remaining undrawn as of the end of the first quarter of 2026.
  • Inventory decreased 4 percent to $318.4 million.

Capital Allocation Update

  • Yeti continues to expect strong free cash flow generation and remain committed to investing in the business to drive sustainable growth and enhance long-term shareholder value through share repurchases.
  • Yeti is announcing today that its Board of Directors approved an increase to its existing share repurchase program, resulting in $500 million available for the repurchase of shares as of May 14, 2026.

2026 Outlook
Reintjes concluded, “Our strong first quarter performance reinforces confidence in our full year outlook. Supported by strong demand for innovation, continued growth in both Drinkware and Coolers & Equipment, and international expansion, we are raising the lower end of our full-year sales growth expectations to a new range of 7 percent to 8 percent and raising our EPS expectations slightly. In our 20th anniversary year, we are building on a proven foundation, an incredibly strong brand, and significant global addressable opportunity. With a clear focus on our strategic priorities, we remain confident in our ability to drive long‑term growth and profitability, unlocking the full global potential of Yeti and driving significant shareholder value.”

For Fiscal 2026 compared to Fiscal 2025, Yeti expects:

  • Sales to increase between 7 percent to 8 percent (versus previous outlook of 6 percent to 8 percent);
  • Adjusted operating income to increase between 8 percent to 10 percent (versus previous outlook of 6 percent to 8 percent). This updated outlook does not include the future favorable impact of any potential IEEPA tariff refunds;
  • Adjusted operating income as a percentage of sales of approximately 14.6 percent (versus previous outlook of 14.4 percent);
  • An effective tax rate of approximately 24 percent (consistent with previous outlook);
  • Adjusted net income per diluted share between $2.83 and $2.89 (versus previous outlook of between $2.77 and $2.83, or 12 percent to 14 percent growth), reflecting a 14 percent to 17 percent increase;
  • Diluted weighted average shares outstanding of approximately 76.6 million (consistent with previous outlook). This outlook reflects the impact of $100 million in expected share repurchases in Fiscal 2026;
  • Capital expenditures between $60 million and $70 million (consistent with previous outlook), primarily to support investments in technology, new product innovation, and its supply chain; and
  • Free cash flow between $200 million and $225 million (consistent with previous outlook).

Image of Yeti’s Bangkok store courtesy Yeti