YETI (YETI) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 rose 8.3% year-over-year to $380.4 million, driven by strong growth in Drinkware (+5%) and Coolers & Equipment (+11%), with broad-based strength across categories and channels.

• Wholesale channel sales surged 19%, marking the best quarterly performance in over three years, while DTC was flat due to softer corporate sales.

• International sales grew 9% to $87 million, now representing over 23% of sales, with notable strength in Europe, Japan, Canada, and Australia.

• EPS decreased 35% to $0.13; adjusted EPS down 16% to $0.26, impacted by $0.09 per share in incremental tariffs.

• Gross margin declined 200–210 bps to 55.3% due to tariffs and channel mix, but margin recovery is expected in the second half.

Financial highlights

• Adjusted gross profit: $210 million (55.3% of sales), down 200 bps year-over-year.

• Adjusted SG&A: $184 million (48.3% of sales), up 10% year-over-year; reported SG&A: $197.8 million (52.0% of sales).

• Adjusted operating income: $26.6 million (7% of sales), down 24% year-over-year; reported operating income: $12.4 million (3.3% margin).

• Adjusted net income: $19.8 million (5.2% of sales), down 23% year-over-year; reported net income: $9.9 million.

• Cash: $127.8 million, down from $259 million due to share repurchases; $300 million undrawn revolver.

• Inventory: $318 million, down 4% year-over-year.

• Debt: $73 million, down from $77 million; weighted-average interest rate 5.55%.

Outlook and guidance

• Full-year 2026 sales growth outlook raised to 7–8% (from 6–8%).

• Adjusted operating income margin expected at 14.6%, up 20 bps from 2025.

• Adjusted EPS guidance raised to $2.83–$2.89 (14–17% growth).

• Free cash flow expected at $200–$225 million; capex $60–$70 million.

• Share repurchase authorization increased to $500 million.

• Outlook does not include potential favorable impact from IEEPA tariff refunds.