YETI · YETI Holdings, Inc.

YETI’s Q1 FY2026 results reflect strong top-line execution amid significant margin pressure from external headwinds. Revenue grew 8% to $380.4 million, fueled by exceptional wholesale growth (+19%) — the strongest in over three years — and balanced regional expansion (US +8%, International +9%). Category-level growth was broad-based: Coolers & Equipment rose 11% to $156.1 million, and Drinkware increased 5% to $216.9 million. However, gross margin contracted 210 bps to 55.3%, with a 280 bps drag from incremental tariffs — the largest single factor — compounded by lower-margin mix from reduced DTC and Drinkware contribution. SG&A rose 10% to $197.8 million (52.0% of sales), reflecting strategic investments in international headcount, technology, and facilities. Operating income fell 43% to $12.4 million (3.3% margin), and GAAP EPS dropped 35% to $0.13, with $0.09 directly attributed to tariffs. Management emphasized that underlying consumer demand remained robust across channels and geographies, particularly in US retail and Amazon Marketplace, while corporate sales weakness acted as a meaningful drag. The raised full-year guidance — sales now 7–8% (up from 6–8%) and adjusted EPS $2.83–$2.89 (14–17% growth) — signals confidence in sustained innovation-driven demand and supply chain resilience. The $500 million share repurchase authorization underscores continued capital return discipline despite near-term margin compression, positioning YETI to capitalize on long-term global brand expansion opportunities.