YETI (YETI) Q1 2025 earnings summary

Executive summary

• Net sales grew 3% year-over-year to $351 million in Q1 2025, led by 17% growth in Coolers & Equipment and strong international expansion, while Drinkware declined 4%.

• International sales rose 22% to $79.9 million, now representing 23% of total sales, with Europe and Asia as key growth drivers.

• EPS increased 11% to $0.20, but adjusted EPS fell 9% to $0.31 due to FX and tariff headwinds; net income grew 5% to $16.6 million.

• Accelerated supply chain diversification aims for less than 5% of U.S. cost of goods from China by end of 2025.

• Operational discipline, cost management, and strong free cash flow supported profitability despite macroeconomic and tariff challenges.

Financial highlights

• Q1 2025 gross profit was $201.3 million (57.3% margin); operating income was $21.7 million (6.2% margin); adjusted operating income was $35.2 million (10.0% margin).

• Net income increased 5% to $16.6 million; adjusted net income decreased 12% to $25.8 million.

• Cash balance at quarter-end was $259 million; inventory down 9% to $330.5 million; total debt at $77 million.

• Free cash flow for FY 2024 was $220 million; FY 2025 guidance is $100–$125 million.

• CapEx for FY 2025 is projected at $60 million, focused on supply chain, technology, and innovation.

Outlook and guidance

• FY 2025 adjusted net sales expected to grow 1–4% year-over-year, with U.S. sales flat to down and international up 15–20%.

• Adjusted operating margin forecast at ~12.0%, down from prior guidance due to a 450 bps tariff impact.

• Adjusted EPS guidance lowered to $1.96–$2.02, reflecting tariffs and supply chain issues.

• Free cash flow guidance reduced to $100–$125 million; capex at ~$60 million.