Yeti Holdings, Inc. raised its earnings guidance for the year after seeing second-quarter earnings arrive comfortably above analyst targets. Sales climbed 9 percent, led by a 16 percent hike in Coolers & Equipment sales and 19 percent international growth. Drinkware sales increased 2 percent.

Earnings in the second quarter of 67 cents a share topped analysts’ consensus estimate of 55 cents. Sales at $483.9 million were in line with estimates.

Second Quarter 2026 Highlights

  • Sales increased 9 percent, led by 16 percent growth in Coolers & Equipment and 19 percent international growth, reflecting strong consumer demand across categories, regions, and channels
  • Gross margin increased 890 basis points, including 110 basis points of favorable operational drivers and 780 basis points net tariff benefit
  • Adjusted gross margin increased 170 basis points, including 110 basis points of favorable operational drivers and 60 basis points net tariff benefit
  • EPS increased 54 percent to 94 cents and Adjusted EPS increased 2 percent to 67 cents
  • Repurchased 2.8 million shares for $130 million
  • Yeti will host an Investor Day on September 17, 2026, in Austin, Texas, where management will provide an update on the business and discuss its long-term strategic plan

Update on 2026 Outlook

  • Maintains 2026 sales growth of 7 percent to 8 percent
  • Increases 2026 adjusted operating income margin to 14.9 percent, up from 14.6 percent previously
  • Raises 2026 adjusted EPS to $2.94 to $3.00, reflecting 19 percent to 21 percent growth, up from $2.83 to $2.89 or 14 percent to 17 percent growth previously

Matt Reintjes, chair of the Board and chief executive officer, commented, “Yeti delivered a strong second quarter, with 9 percent top-line growth, and stronger-than-expected profitability. We also completed $130 million in share repurchases, reflecting the durability of our business model and the cash-generating strength of our operating platform. Our results demonstrate broad-based execution across categories, channels, and geographies, powered by the Yeti brand and the expanding reach of our product portfolio. The work we’ve done over the past several years to build a more diversified, more balanced, and more repeatable growth company is showing up in the quality and consistency of our results.”

Reintjes continued, “What stood out in the quarter was the strength of brand momentum and innovation across our product platforms. Our FOUR Letters brand campaign deepened awareness and expanded the brand’s reach to new audiences, while our community activations reinforced our localized approach to building consumer engagement and trust. In an uneven consumer environment, demand across our product platforms remained strong, driven by the durability, design, and performance that differentiate Yeti. We also saw continued progress across our omni-channel model, including strong wholesale sell-through, healthy DTC demand and improving trends in Corporate Sales. As expected, International reaccelerated in the quarter, as we continue unlocking a compelling long-term growth opportunity, with Europe, Asia, Australia and New Zealand validating that our brand can travel and our product platforms can translate across markets.”

Second Quarter 2026 Results

Sales increased 9 percent to $483.9 million, reflecting strong consumer demand across channels, accelerating growth in Coolers & Equipment, and continued momentum across international regions.

Sales by Channel

  • Wholesale channel sales increased 10 percent to $218.0 million, driven by strong growth across the US and its international regions, reflecting healthy consumer demand.
  • Direct-to-consumer (“DTC”) channel sales increased 7 percent to $265.9 million, primarily due to robust performance in its Amazon Marketplace business as well as growth in Yeti websites and Yeti retail stores.

Sales by Category

  • Coolers & Equipment sales increased 16 percent to $232.4 million, primarily driven by strong performance in bags, soft coolers, cases & storage, and outdoor living, reflecting continued strength across core and expanded categories.
  • Drinkware sales increased 2 percent to $241.4 million, primarily driven by international growth and supported by continued innovation in its Drinkware product portfolio.

Sales by Region

  • US sales increased 6 percent to $391.0 million, primarily driven by growth in Coolers & Equipment, reflecting strong consumer demand trends. Demand was robust in the wholesale channel as well as Amazon Marketplace and Yeti retail.
  • International sales increased 19 percent to $92.9 million, reflecting strong growth in Europe and Australia, as well as growth in Canada and Japan. Performance was driven by strong growth across its key channels, reflecting increased brand awareness across key markets.

Gross profit increased 25 percent to $322.5 million. Gross margin increased 890 basis points to 66.7 percent including 110 basis points of favorable operational drivers as well as 780 basis points net tariff benefit. Operational drivers that favorably impacted gross margins by 110 basis points included continued pricing discipline, product cost management and other factors. The net tariff benefit consisted of IEEPA tariff refunds, of amounts expensed in 2025 and 2026, recorded as a reduction of cost of goods sold during the quarter, which favorably impacted gross profit by $42.6 million, and gross margin by 890 basis points. This benefit was partially offset by a 110 basis point unfavorable impact on gross margins from higher year-over-year tariff costs incurred during the quarter.

Adjusted gross profit increased 12 percent to $288.1 million. Adjusted gross margin increased 170 basis points to 59.5 percent including 110 basis points of favorable operational drivers and 60 basis point net tariff benefit. Operational drivers that favorably impacted gross margins included continued pricing discipline, product cost management and other factors. The net tariff benefit of 60 basis points consisted of IEEPA tariff refunds of amounts expensed in 2026, recorded as a reduction of cost of goods sold during the quarter, which favorably impacted adjusted gross profit by $8.2 million and adjusted gross margin by 170 basis points. This benefit was partially offset by a 110 basis point unfavorable impact on adjusted gross margin from higher year-over-year tariff costs incurred during the quarter. The IEEPA tariff refunds related to tariffs expensed in 2025 are excluded from adjusted gross profit and adjusted gross margin.

Selling, general, and administrative (“SG&A”) expenses increased 17 percent to $229.0 million. As a percentage of sales, SG&A expenses increased 340 basis points to 47.3 percent. This increase was primarily driven by a shift in the timing of its brand campaign into the second quarter relative to last year’s fourth quarter brand campaign, inflationary pressure in distribution and fulfillment costs, higher incentive compensation expense, and investments in headcount to support its international expansion, partially offset by lower non-cash stock-based compensation.

Adjusted SG&A expenses increased 19 percent to $219.9 million. As a percentage of sales, adjusted SG&A expenses increased 410 basis points to 45.4 percent. This increase was primarily driven by a shift in the timing of its brand campaign into the second quarter relative to last year’s fourth quarter brand campaign, inflationary pressure in distribution and fulfillment costs, higher incentive compensation expense, and investments in headcount to support its international expansion.

Operating income increased 51 percent to $93.5 million, or 19.3 percent of sales.

Adjusted operating income decreased 7 percent to $68.2 million, or 14.1 percent of sales.

Net income increased 39 percent to $71.3 million, or 14.7 percent of sales. Net income per diluted share increased 54 percent to 94 cents, including an approximately $0.40 net tariff benefit. The net tariff benefit consisted of a 45 cents benefit from IEEPA tariff refunds related to tariffs expensed in 2025 and 2026, partially offset by a 5 cents unfavorable impact from higher year-over-year tariffs incurred during the quarter.

Adjusted net income decreased 8 percent to $50.7 million, or 10.5 percent of sales. Adjusted net income per diluted share increased 2 percent to 67 cents a share, including an approximately 3 cents net tariff benefit. The net tariff benefit consisted of a 8 cents benefit from IEEPA tariff refunds related to tariffs expensed in 2026, partially offset by a 5 cents unfavorable impact from higher year-over-year tariffs incurred during the quarter.

Balance Sheet and Liquidity Review

Yeti continued to maintain a strong liquidity position with cash of $59.8 million, $101.7 million of total debt, excluding finance leases and unamortized deferred financing fees, and $270 million of available capacity under its $300 million Revolving Credit Facility as of the end of the second quarter of 2026.

Inventory increased 5 percent to $359.1 million.

Capital Allocation Update

Yeti continues to expect strong free cash flow generation and remain committed to investing in its business to drive sustainable growth and enhance long-term stockholder value, including through share repurchases.

Pursuant to its existing $500 million share repurchase authorization, in the second quarter of 2026, the company repurchased 2.8 million shares for $130.0 million. As of July 4, 2026, approximately $370.0 million remained available for repurchases under its share repurchase program.

IEEPA Tariff Refunds Update

During the second quarter of 2026, Yeti concluded that recovery of tariffs under the International Emergency Economic Powers Act (“IEEPA”) was probable. The total net benefit of the IEEPA tariff refund was $45.6 million for the second quarter of 2026, consisting of a $42.6 million net benefit recognized as a reduction of cost of goods sold and $2.9 million of interest income. Of this amount, its non-GAAP results exclude $34.4 million related to the 2025 net tariff impact and $2.9 million of interest income, resulting in a net EPS benefit of $0.08 during the second quarter of 2026.

Updated Fiscal 2026 Outlook

Reintjes concluded, “As we look ahead, we remain focused on the strategic priorities driving Yeti’s long-term opportunity: strengthening the brand, expanding core categories and proven adjacencies, scaling internationally, and building the operating capabilities behind the business. We are investing in innovation, supply chain flexibility, digital capabilities, customization, and market-by-market execution — all with the goal of delivering durable growth and sustained value creation. The second quarter reinforced our confidence in the trajectory ahead. Yeti is a stronger, broader, and more global company, and 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.”

Yeti has updated its Fiscal 2026 Outlook. This improvement reflects strong year-to-date sales results, strength in gross margins, as well as the timing of share repurchases, partially offset by continued growth investments and incremental inflationary pressures on our operations. The non-GAAP metrics of this outlook exclude the net benefit from IEEPA tariff refunds associated with tariffs expensed in 2025. This outlook assumes that U.S. tariff rates will return to approximately 20 percent in the second half of 2026.

Image courtesy Yeti