YETI Holdings, Inc.

Second-quarter sales were approximately $484 million, up 9% year over year. Adjusted gross profit increased 12% to $288 million, and adjusted gross margin expanded 170 basis points to 59.5%. Adjusted SG&A rose 19% to $220 million, adjusted operating income fell 7% to $68 million, adjusted net income fell 8% to $51 million, and adjusted EPS increased 2% to $0.67. By category, Coolers & Equipment grew 16% to $232 million and Drinkware grew 2% to $241 million; by channel, wholesale rose 10% to $218 million and D2C rose 7% to $266 million. The company ended the quarter with about $60 million in cash, inventory of $359 million, and total debt of about $102 million. For 2026, YETI kept sales growth guidance at 7% to 8%, raised gross margin guidance to 57.5% to 58%, raised OpEx growth guidance to 6% to 8%, raised adjusted operating margin guidance to about 14.9%, and raised adjusted EPS guidance to $2.94 to $3. It still expects capital expenditures of $60 million to $70 million and free cash flow of $200 million to $225 million.

Matt Reintjes framed the quarter as proof that YETI is becoming broader, more resilient, and better able to win through uncertainty. He emphasized brand-building, innovation, and omnichannel expansion as the core strategic levers, and said the company is focused on long-term growth, not quarter-to-quarter noise. His tone was confident and upbeat, especially on the durability of the brand, the breadth of product platforms, and the opportunity in international markets.

Scott Bomar said the quarter featured broad-based 9% sales growth, 170 basis points of gross margin expansion to 59.5%, and a meaningful beat versus expectations on operating performance. He said gross margin benefited from pricing discipline, product and supply chain productivity, and a 170 basis point, or $8.2 million, benefit from IEEPA tariff refunds, partially offset by higher realized tariff costs and inflation. He also noted $130 million of share repurchases in the quarter, about $60 million in cash at quarter-end, inventory of $359 million, and unchanged capital allocation priorities focused on reinvestment, selective M&A, and buybacks.

Analysts focused heavily on U.S. demand, Drinkware, tariffs, inflation, and international growth. Management said U.S. consumer demand exceeded reported sales, that Drinkware’s U.S. drag from three SKUs is a known headwind that should largely roll off by year-end, and that the company still expects mid-single-digit Drinkware growth for the full year. On tariffs, Scott said the 20% assumption starting in September is conservative and not based on special visibility, while on inflation he called out stainless steel, magnets, resin, FX, fuel, and transportation as key pressure points. Management also said international demand remains strong overall, with Japan still early, Europe and Australia performing well, and Canada softer due to cautious wholesale inventory buying.