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    YETI
    Earnings call· Jun 2026(Q2 FY26)

    YETI Holdings Q2 FY26 earnings call YETI

    Aug 13, 2026 Source

    Executive summary

    YETI Q2 FY26 — Strong Top-Line Growth and Raised Full-Year Outlook

    YETI delivered robust Q2 FY26 results, showcasing broad-based growth across categories and geographies, driven by brand momentum and product innovation. The company raised its full-year gross margin and EPS outlook, reflecting strong operational execution and capital allocation discipline, despite an uneven consumer backdrop and inflationary pressures. Management remains confident in its long-term growth strategy and international expansion.

    Highlights

    5

    • Delivered nearly 9% top-line growth to $484 million, underscoring business strength and resilience.

    • Adjusted gross margin expanded 170 basis points to 59.5%, driven by operational improvements and tariff refunds.

    • Executed $130 million in share repurchases in the quarter, bringing the total since 2024 to over $600 million.

    • Raised full-year adjusted operating income margin outlook to approximately 14.9% and adjusted EPS guidance to $2.94-$3.00.

    • International sales grew 19% to $93 million, reflecting strong growth in Europe, Australia, and Japan.

    Concerns

    5

    • Adjusted operating income decreased 7% to $68 million, and adjusted net income decreased 8% to $51 million.

    • Adjusted SG&A increased 19% to $220 million and deleveraged 410 basis points to 45.4% of sales due to brand campaign timing and higher incentive compensation accrual.

    • U.S. Drinkware sales were flat amidst continued market pressure and competition, despite mid-single-digit end consumer demand growth.

    • Increased inflationary pressures in distribution, fulfillment, and other costs led to a raised OpEx growth outlook of 6% to 8%.

    • Sales in Canada were below expectations as wholesale partners maintained a cautious approach to inventory purchases, despite healthy D2C and sell-through trends.

    Guidance & targets

    19
    CategoryTargetConfidence
    Full-year sales growth
    7% to 8%
    high materiality
    High
    Coolers & Equipment sales growth
    high single-digit to low double-digit
    medium materiality
    High
    Drinkware sales growth
    mid-single-digit
    medium materiality
    High
    Wholesale channel sales growth
    high single to low double-digit rate
    medium materiality
    High
    Direct-to-consumer sales growth
    mid-single-digit growth
    medium materiality
    High
    U.S. sales growth
    low to mid-single-digit growth
    medium materiality
    High
    International sales growth
    high teens to 20%
    medium materiality
    High
    Adjusted gross margins
    57.5% to 58%
    high materiality
    High
    Tariff rates assumption
    approximately 20%
    medium materiality
    Medium
    Operating expenses growth
    6% to 8%
    medium materiality
    High
    Adjusted operating income margin
    approximately 14.9%
    high materiality
    High
    Adjusted operating income growth
    10% to 12%
    high materiality
    High
    Effective tax rate
    approximately 24%
    medium materiality
    High
    Diluted shares outstanding
    approximately 75.4 million
    medium materiality
    High
    Adjusted earnings per diluted share
    $2.94 to $3.00
    high materiality
    High
    Capital expenditures
    $60 million and $70 million
    medium materiality
    High
    Free cash flow
    $200 million and $225 million
    high materiality
    High
    Operating margins increase
    approximately 280 basis points year-over-year
    medium materiality
    High
    International markets live
    11 markets
    low materiality
    High

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Coolers & Equipment
    Driven by strength across bags, soft coolers, cases and storage, and outdoor living. Innovation continues to resonate with consumers across channels, highlighted by Daytrip and Camino lines.
    		$232M16%——
    Drinkware
    Third consecutive quarter of growth in the category, driven by momentum across international markets and strong innovation. U.S. Drinkware sales were flat amidst market pressure, but end consumer demand increased mid-single digits.
    		$241M2%——
    Wholesale
    Driven by strength across the U.S. and international markets. Sell-through was robust, and channel inventory remained healthy, positioning the company well for the back half of the year.
    		$218M10%——
    Direct-to-consumer
    Supported by continued strong demand across marketplaces, e-commerce, and YETI retail stores. Corporate sales declined slightly year-over-year but improved markedly from the first quarter.
    		$266M7%——
    U.S.
    Driven by growth in Coolers & Equipment. Saw robust demand in the wholesale channel as well as across marketplace and YETI retail stores.
    		$391M6%——
    International
    Reflecting strong growth in Europe, Australia, and Japan. Brand strength continues to build across newer markets. Sales in Canada were positive but weaker due to cautious wholesale partners.
    		$93M19%——

    Operational metrics

    12
    Adjusted gross margin
    59.5%+170 bps YoY
    Q2 FY26

    Operational improvements, including continued pricing discipline and product cost management, drove margin favorability, partially offset by higher year-over-year realized tariff costs.

    Adjusted SG&A as % of sales
    45.4%+410 bps YoY
    Q2 FY26

    The increase was primarily due to the timing of the brand campaign and higher short-term incentive compensation accrual, along with elevated distribution and fulfillment costs.

    Adjusted operating income margin
    14.1%
    Q2 FY26

    Adjusted operating income decreased 7% to $68 million.

    Adjusted net income margin
    10.5%
    Q2 FY26

    Adjusted net income decreased 8% to $51 million.

    Cash balance
    $60Mvs $270M prior year quarter
    Q2 FY26

    Cash and investments balance at quarter end.

    Total debt
    $102Mvs $76M prior year quarter
    Q2 FY26

    Excluding finance leases and unamortized deferred financing fees.

    New store openings
    2
    Q2 FY26

    Pleased with consumer response to new store openings.

    International markets live
    4
    Q2 FY25

    Expected to be live in 11 markets by end of 2026.

    Japan wholesale doors
    just over 500
    Q2 FY26

    Expanded presence in Japan as the market matures.

    U.S. Drinkware growth drag
    600 bps
    FY26

    Significant headwind counterbalanced by diversification and innovation strategy.

    U.S. Drinkware end consumer demand
    mid-single digits
    Q2 FY26

    Underlying demand remained healthy despite flat reported sales.

    Corporate sales as % of D2C
    ~25%
    Q2 FY26

    Corporate sales improved markedly from Q1, with demand appearing stable.

    Industry KPIs

    11
    MetricValueDetails
    EPS$0.67USD
    Revenue$484MUSD
    Inventory$359MUSD
    Net income$51MUSD
    Gross margin59.5%%
    Sg a OPEX ratio45.4%% of sales
    Operating margin14.1%%
    Operating income EBIT$68MUSD
    Cash investments balance$60MUSD
    Tariff impact mitigation+60 bpsbps
    Share buyback capital return$130MUSD

    Product announcements

    1
    ProductTypeDetails
    Camino Ziplaunch

    Risks & headwinds

    6
    Uneven consumer backdrop

    Pockets of caution, value-seeking, and ongoing macro uncertainty

    Mitigation: YETI's brand breadth, product platforms, and team execution are driving resilience.

    Drinkware market pressure and competitionQ2 FY26; 3 SKUs expected to lap by year-end 2026

    U.S. Drinkware sales flat, 600 bps drag from 3 primary SKUs

    Mitigation: Strong execution of diversification and innovation strategy across the rest of the platform; products driving headwind will largely complete their lap by year-end.

    Inflationary pressuresQ2 FY26 and ongoing

    Oil markets, raw material cost pressure (stainless steel, magnets, resins), ocean and parcel headwinds, shipping delays across certain Asia trade lanes; increased inflationary pressures in distribution, fulfillment and other costs

    Mitigation: Proactive steps to reduce risk, including qualifying additional raw material sources, diversifying supply chain, scaling structural enterprise productivity programs; ongoing cost discipline and operating leverage.

    Higher short-term incentive compensation accrualQ2 FY26

    Unfavorable year-over-year impact, contributing to 410 bps deleverage in adjusted SG&A

    Cautious wholesale partners in CanadaQ2 FY26

    Softer-than-expected wholesale sales, offsetting healthy D2C performance

    Potential for increased tariffsBeginning in September

    Guidance assumes tariff rates return to approximately 20%

    Mitigation: Conservative planning in outlook.

    What to watch in Q3 FY26

    5

    Drinkware growth post-SKU lap

    Next quarter / FY27
    CurrentU.S. Drinkware sales flat (with 600 bps drag from 3 SKUs)
    TargetReaccelerated growth after 3 SKUs lap by year-end 2026

    Why it matters

    Verifying the re-baselining of the Drinkware business and the effectiveness of diversification strategy is key to long-term growth.

    The products driving the headwind will largely complete their lap by year-end, resetting the base as we head into 2027. We continue to be very pleased with the underlying performance of the Drinkware platform, not only new innovation, but also some of our longest-standing models within YETI Drinkware.

    Q&A highlights

    8

    Can you elaborate on the U.S. growth outlook, especially with tougher comparisons, and what gives you confidence in sustained growth in the core U.S. market?

    Management expressed satisfaction with strong consumer demand in the U.S. during the first half, which exceeded reported sales. They are confident in the underlying trends driven by innovation and improved corporate/international sales, but remain cautious in the back half outlook due to consumer uncertainty. The focus is on long-term growth beyond quarter-to-quarter fluctuations.

    “We had steady consumer demand over the course of the first 2 quarters. In fact, in the United States, our consumer demand exceeded our reported sales. So all the trends are positive.”

    asked by Brooke Roach · answered by Scott Bomar

    2 min read6 chapters

    Detailed Narrative

    01

    Brand Momentum and Reach

    YETI's "FOUR Letters" national brand campaign in Q2 FY26 strengthened awareness and expanded reach to new audiences, balancing scale with credibility. The brand's presence in major live sports, including the most-watched NBA finals game since 2016, and local activations reinforces its cultural roots and relevance across diverse consumer groups and use cases. This approach is seen as a compounding advantage, driving strong engagement across digital ecosystems and wholesale partners.

    02

    Innovation and Product Platform Expansion

    Innovation continues to drive growth beyond YETI's hard cooler and Drinkware legacy into soft coolers, bags, and protective cases, increasing daily use and reliance. New products like Daytrip insulated bags, Camino totes, Roadie 15/8, and the GoBox family are performing well, demonstrating resilience and allowing entry into new categories. The company's strategy to diversify Drinkware has counterbalanced a 600 basis point drag from three specific trend-driven SKUs, which are expected to lap by year-end 2026.

    03

    Omnichannel Strategy and Channel Health

    YETI's omnichannel approach drives balanced and durable growth, with strong year-over-year sell-in and sell-through in wholesale, supported by retail partners expanding their commitments. D2C demand remained strong across marketplaces, e-commerce, and YETI retail stores, with corporate sales showing meaningful improvement versus the first quarter trend. Tracked channel inventory exited Q2 FY26 down, indicating a healthy demand-driven channel and positioning the company well for the back half of the year.

    04

    International Growth Opportunity

    International markets represent a significant long-term growth opportunity, with strong year-over-year growth in Europe, Australia, and Japan. YETI is expanding its presence in Asia, advancing plans for Korea, China, Indonesia, and Taiwan, expecting to be live in 11 markets by year-end 2026, up from 4 last year. This progress reinforces conviction in the long-term international potential, despite challenging macroeconomic conditions in some regions.

    05

    Operational Efficiency and Investment

    The supply chain is responding well despite complex dynamics like oil markets, raw material cost pressures, and shipping delays across Asia trade lanes. YETI is investing in global design and development across five locations, digital capabilities like its AI-driven shopping assistant "Ranger," and Artboard customization for yeti.com. These investments aim to strengthen innovation, accelerate product development, and support long-term growth and personalization.

    06

    Strategic Outlook and Investor Day

    Management emphasized YETI's brand-led platform business, powered by authentic consumer demand, disciplined innovation, and a diversified global omnichannel model. The upcoming Investor Day on September 17 in Austin will detail the next chapter of YETI's growth story, focusing on brand relevance, innovation engine capabilities, commercialization strategies, meaningful category expansion opportunities, and the powerful financial model built to compound shareholder value.

    AI-generated summary of the company’s earnings call. Not investment advice.