YETI Holdings, Inc.

What they do

YETI designs, sells, and distributes premium outdoor products across three categories: Coolers & Equipment, Drinkware, and Other. It operates a balanced omni-channel platform, selling through wholesale partners (e.g., Dick's Sporting Goods, REI, Bass Pro Shops) and direct-to-consumer (DTC) channels, including its own websites, retail stores, and Amazon Marketplace. The company is headquartered in Austin, Texas, and was founded in 2006.

Revenue drivers

• Drinkware — For fiscal 2025, Drinkware represented 58% of net sales. In Q2 2026, Drinkware sales increased 2% to $241.4 million, driven by international growth and product innovation.
• Coolers & Equipment — For fiscal 2025, Coolers & Equipment represented 40% of net sales. In Q2 2026, sales increased 16% to $232.4 million, led by strong performance in bags, soft coolers, cases/storage, and outdoor living.
• International — International sales increased 19% to $92.9 million in Q2 2026, with strong growth in Europe, Australia, Canada, and Japan, reflecting increased brand awareness.
• Direct-to-Consumer (DTC) Channel — DTC channel sales increased 7% to $265.9 million in Q2 2026, with robust performance in Amazon Marketplace, YETI websites, and retail stores. DTC is a key margin-accretive channel.

Recent performance

In Q2 2026 (ended July 4, 2026), YETI reported net sales of $483.9 million, a 9% increase year-over-year. Gross profit increased 25% to $322.5 million, with gross margin up 890 basis points to 66.7%, including a net tariff benefit of 780 basis points. EPS increased 54% to $0.94, while adjusted EPS increased 2% to $0.67. The company repurchased 2.8 million shares for $130 million during the quarter. For fiscal 2025 (ended January 3, 2026), annual revenue was $1.87 billion, net income was $165.4 million, and diluted EPS was $2.03.

Strategy

YETI's strategy focuses on broadening its product portfolio across categories, expanding internationally, and driving DTC growth. Management emphasizes innovation (e.g., new product launches in Drinkware, Coolers & Equipment, and bags) and brand-building campaigns like 'FOUR Letters' to deepen awareness. The company is also managing tariffs through pricing and operational improvements and returning cash to shareholders via share repurchases. YETI plans to host an Investor Day on September 17, 2026, to discuss its long-term strategic plan.

Risks

• Brand and demand risk — A significant reduction in consumer demand or failure to maintain the premium brand image could harm results of operations.
• Tariff and supply chain risk — U.S. tariffs on imports from countries where products are produced have materially increased import costs, and further government actions could negatively impact margins.
• Macroeconomic pressures — Inflation, consumer confidence, and foreign currency fluctuations could affect demand and cost structure; the company expects inflationary pressures in distribution and fulfillment to continue.
• Manufacturer concentration — The business is subject to the risk of concentration among its manufacturers, and any problems with suppliers or raw materials could disrupt operations.

Outlook

Management maintains 2026 sales growth of 7% to 8%. It raises 2026 adjusted operating income margin to 14.9% (up from 14.6%) and increases 2026 adjusted EPS to $2.94-$3.00, reflecting 19%-21% growth. The company expects continued strong demand across categories, regions, and channels, with international reacceleration and ongoing innovation.