Yeti Holdings, Inc.’s sales inched up 2 percent in the third quarter as growth is being restrained by cautious wholesale buying, particularly in the U.S.  Matt Reintjes, president and CEO, said on an analyst call that Yeti continues to see strong sell-throughs and remained bullish Yeti would return to its long-term growth target in the high-single-digits to low-double-digits as it ramps up innovation, accelerates international growth, and capitalizes on fresh partnerships with Nordstrom and Fanatics.

“Our product innovation pipeline has never been more robust, extending and deepening our portfolio,” said Reintjes. “Our brand is connecting with both legacy and new customers domestically and abroad. Our international growth is accelerating with exceptional performance in the U.K. and Europe, robust consumer demand in Australia and Canada and a great early read in Asia with more opportunity to come.”

He noted that the strength is evident with “robust double-digit gains” being seen in the Coolers & Equipment category in international markets.  However, the quarter was also impacted by “a softer U.S. e-commerce performance and significant caution in wholesale sell-in, which created a notable gap compared to very strong double-digit sell-through across both Drinkware and Coolers as reported in that channel.”

He was confident that Yeti’s diversified go-to-market strategy, its omnichannel selling approach and the acceleration of its international expansion would soon drive stronger top-line gains.

Reintjes further noted that across its two core categories, Drinkware and Coolers & Equipment, Yeti is on track to launch more than 30 new products in 2025 to create growth opportunities, despite the company’s move to shift much of its drinkware production out of China.  He said, “As we stoke the brand globally, we create natural opportunity for product innovation, expansion and vitality.”

Reintjes’ comments come as Yeti reported Q3 results that were below year-ago levels due to the impact of tariffs and wholesale caution, but they were better than analyst targets. Yeti slightly raised its guidance for the year.

In the quarter, sales increased 2 percent to $487.8 million, topping analysts’ consensus estimate was $480.27 million.

Channel Performance

Direct-to-consumer (DTC) channel sales increased 3 percent to $288.7 million as growth in its Amazon Marketplace business, Corporate Sales, and Yeti retail stores offset by a decline in sales on its U.S. Yeti website.

Wholesale channel sales increased 1 percent to $199.0 million with growth in Coolers & Equipment offsetting Drinkware declines.

“Our wholesale channel demonstrated very strong momentum despite a continuation of more cautious ordering and tighter inventory management from our retail partners, particularly in the U.S.,” said Reintjes. “Sell-through trends remained strong, reflecting healthy consumer demand throughout the quarter. As we enter year-end, we are well-positioned from a channel inventory perspective and feel great about our setup heading into 2026.”

Among the newer initiatives within its wholesale channel, Yeti last month started a new wholesale partnership with Nordstrom, where Yeti is being featured in its holiday gift activation across 91 doors and online and permanent placement in 70 Nordstrom home doors. Said Reintjes, “This new retail partnership underscores our focus on adding complementary distribution channels to support our diverse product portfolio.”

In DTC, Yeti’s Amazon marketplace “continues to see strong performance” while its corporate sales business once again exceeded expectations, supported by expanded customization capabilities across hard coolers and select bags as well as growing partnerships in sports and hospitality.

A partnership with Fanatics announced during the quarter “significantly expands” Yeti’s presence in the sports licensing market and is already driving strong engagement across fan communities. Reintjes said, “We’re incredibly excited about the momentum we’re seeing and the opportunities ahead as we build on this performance and further accelerate growth across our consumer and commercial channels.”

On yeti.com, traffic and average order value grew in Q3 with strong engagement around new product launches. Conversion rates, however, “remained pressured in the quarter, impacting overall performance and reflecting a greater prevalence of deal shopping by consumers,” said Reintjes.

Product Performance

Drinkware sales decreased 4 percent in the quarter to $263.8 million. As expected, Drinkware growth in its international regions was more than offset by a decline in its U.S. region, reflecting a promotional market environment and inventory constraints driven by its supply chain transition. Yeti announced earlier this year plans to relocate 80 percent of its global drinkware production out of China by the end of the year.

Reintjes said of the Drinkware segment, “Even as overall sell-in was down year-over-year in the U.S. wholesale, sell-through strength highlights the underlying momentum of Yeti, particularly the durability of our Drinkware business in that highly contested market. It reinforces our global strategy of building a sound foundation through diversification to set up for growth in Drinkware in Q4 and beyond.”

Recent launches in the Drinkware segment include insulated food jars, travel bottles, an updated Rambler Jug, ceramic-lined drinkware and a cast iron expansion with its six-quart  Ranch Pan.

Reintjes said, “Looking at the remainder of the year and into 2026, we’re energized by feedback we’ve received from our partners about the innovation ahead in Drinkware, including the upcoming release of our Yeti Shaker Bottle, featuring a patented design that improves upon the standard shaker providing an incredible mix experience while removing the traditional wire ball.”

Reintjes noted with the shaker bottle, which will be manufactured in the U.S., Yeti is targeting a roughly $2.5 billion market, fueled by the rapid growing demand for hydration powders, protein supplements and wellness products. He said, “Early feedback from wholesale sports and health partners has been very positive.”

Coolers & Equipment sales increased 12 percent in the quarter to $215.4 million, due to growth in both its US and international regions, primarily driven by strong performance in soft coolers and bags.

Daytrip soft coolers “saw significant demand” with expansions planned in coming months to address a wider market opportunity. In bags and packs, Yeti continues to see strength across new and legacy products with notable performance in backpacks, totes and duffles. Reintjes said, “Following strong demand for Camino totes, which sold out across channels a number of times, we’ve worked to replenish inventory through limited re-releases and are partnering with our retailers to capture some of the anticipated holiday demand and sustained momentum of this iconic product.”

In hard coolers, the Roadie and Tundra families continue to grow despite the major debuts of Roadie 15 and Roadie 32 in the prior year. Reintjes said, “The recent additions of customization capabilities on a range of our coolers unlock significant opportunities, particularly among our existing partnerships and sports relationships.”

Sales in the U.S. decreased 1 percent to $387.3 million. International sales increased 14 percent to $100.4 million, reflecting growth across all regions, led by Europe and Australia, as well as increasing consumer enthusiasm in Japan, which launched in the second quarter of 2025.

Adjusted net income decreased 18 percent to $49.6 million, 61 cents, including a 14-cents-a-share  unfavorable net impact from higher tariff costs. Results topped analysts’ consensus estimate was 58 cents.

Net income decreased 30 percent to $39.4 million, or 48 cents.

The earnings decline reflects a decrease in gross margins by 210 basis points due to a 320-basis point unfavorable impact from higher tariff costs, as well as a lower mix of its Drinkware category. These decreases were partially offset by lower product costs, selective price increases implemented in the second quarter, and the absence in the current year quarter of purchase accounting inventory step-up amortization.

Adjusted gross margins eroded to 55.9 percent from 58.2 percent of adjusted sales, primarily due to a 320-basis point unfavorable impact from higher tariff costs, as well as a lower mix of its Drinkware category. These decreases were partially offset by lower product costs and selective price increases implemented in the second quarter of 2025.

SG&A expenses increased 120 basis points to 44.7 percent of sales primarily due to growth investments related to technology and facilities, higher non-cash stock-based compensation, increased depreciation and amortization expense resulting from continued capital investments to support future growth, and asset impairments, partially offset by lower marketing expenses associated with higher sales.

Adjusted SG&A expenses increased 50 basis points to 42.2 percent primarily due to growth investments related to technology and facilities, as well as depreciation and amortization expenses related to its continued capital investments to support future growth, partially offset by lower marketing expenses resulting from higher sales.

Operating income decreased 22 percent to $54.4 million, or 11.1 percent of sales, while adjusted operating income slid 16 percent to $66.6 million, or 13.7 percent of adjusted sales.

Updated 2025 Outlook

  • Adjusted sales to increase 1 percent to 2 percent (versus the previous outlook of flat to up 2 percent), including an approximately 300 basis point unfavorable impact related to our supply chain transformation.
  • Adjusted operating income as a percentage of adjusted sales between 14.0 percent and 14.5 percent (consistent with previous outlook). This outlook reflects an approximate 230 basis point unfavorable net impact from higher tariff costs versus the prior year.
  • An effective tax rate of approximately 25.5 percent (consistent with the previous outlook).
  • Adjusted net income per diluted share between $2.38 and $2.49 (versus previous outlook of between $2.34 and $2.48), including an approximately 40-cent net unfavorable impact from higher tariff costs.
  • Diluted weighted average shares outstanding of approximately 81.5 million (versus the previous outlook of 82.0 million). This outlook reflects the impact of the expected $300 million in share repurchases in Fiscal 2025 (versus the previous outlook of $200 million in share repurchases).
  • Capital expenditures of approximately $50 million (consistent with previous outlook), primarily to support investments in technology, new product innovation, and our supply chain.
  • Free cash flow of approximately $200 million (versus the previous outlook of between $150 million and $200 million).