YETI (YETI) Q1 2025 earnings summary

Executive summary

• Net sales grew 3% year-over-year to $351.1 million in Q1 2025, led by 17% growth in Coolers & Equipment and strong international and DTC performance, while Drinkware declined 4% due to U.S. supply chain shifts and tariffs.

• International sales rose 22% year-over-year, now representing 23% of total sales, with Europe, Australia, and Japan as standouts.

• EPS increased 11% to $0.20, but adjusted EPS fell 9% to $0.31, reflecting FX headwinds and higher SG&A; 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 year-end 2025; 90% of U.S. drinkware capacity expected to be ex-China.

• Operational discipline maintained through cost management, reduced CapEx, and inventory optimization.

Financial highlights

• Gross profit rose 4% to $201.7 million (57.4% margin); adjusted gross profit $201.3 million (57.3% margin); operating income down 16% to $21.7 million; adjusted operating income down 11% to $35.2 million.

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

• Cash balance at $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.

Outlook and guidance

• FY2025 adjusted sales expected to grow 1–4%, with international up 15–20% and U.S. flat to down; guidance lowered due to tariffs and supply disruptions.

• Gross margin forecast at 54%, down 450 bps due to tariffs; adjusted operating margin at ~12%; adjusted EPS $1.96–$2.02, down from $2.73 in 2024.

• CapEx reduced to ~$60 million, prioritizing supply chain and innovation.