YETI (YETI) Q2 2026 earnings summary

Executive summary

• Achieved 9% year-over-year net sales growth in Q2 2026 to $483.9 million, led by 16% growth in Coolers & Equipment and 19% international sales growth, with strong performance across channels and geographies.

• Gross profit rose 25% to $322.5 million, with gross margin improving 890 bps to 66.7%, primarily due to IEEPA tariff refunds and selective price increases.

• Adjusted gross margin increased 170 bps to 59.5%; adjusted operating income was $68.2 million (14.1% margin); adjusted EPS up 2% to $0.67.

• Net income for Q2 2026 was $71.3 million, up 39%, with diluted EPS of $0.94, up 54%.

• Returned $130 million to shareholders via repurchase of 2.8 million shares; $370 million remains authorized.

Financial highlights

• Q2 2026 net sales: $483.9 million (+9% year-over-year); gross profit: $322.5 million (+25%); gross margin: 66.7% (up 890 bps, including 780 bps net tariff benefit).

• Adjusted gross profit up 12% to $288.1 million; adjusted gross margin up 170 bps to 59.5%.

• Adjusted operating income down 7% to $68.2 million (14.1% margin); adjusted net income down 8% to $51 million.

• Net income per diluted share: $0.94 (GAAP), $0.67 (adjusted).

• Inventory increased 5% to $359.1 million; cash ended at $59.8 million.

Outlook and guidance

• Full-year 2026 sales growth expected at 7%–8%.

• Adjusted operating income margin guidance raised to 14.9%; adjusted EPS guidance increased to $2.94–$3.00 (19%–21% growth).

• Capital expenditures expected at $60–$70 million; free cash flow guidance at $200–$225 million for 2026.

• International growth projected in high teens to 20% for the year.

• Management expects continued inflationary pressures in distribution and fulfillment costs.