YETI (YETI) Q3 2025 earnings summary

Executive summary

• Net sales grew 2% year-over-year to $487.8 million in Q3 2025, driven by double-digit gains in Coolers & Equipment and international markets, while U.S. Drinkware sales declined due to market softness and inventory constraints.

• International sales rose 14% to $100.4 million, now 21% of total sales, with standout growth in Europe, Asia, and early traction in Japan.

• EPS fell 27% to $0.48; adjusted EPS down 14% to $0.61, impacted by higher tariffs and lower Drinkware mix.

• Strong innovation pipeline with over 30 new products planned or launched in 2025, including drinkware, coolers, and bags, and expanded sports partnerships.

• Year-to-date share repurchases reached ~$173 million, with a new 2025 target of $300 million and $500 million planned over 2024-2025.

Financial highlights

• Q3 2025 net sales: $487.8 million (+2% YoY); adjusted gross profit fell 2% to $272.5 million (55.9% margin), down 210-230 bps YoY due to tariffs and lower Drinkware mix.

• Adjusted operating income dropped 16% to $66.6 million (13.7% margin); net income decreased 30% to $39.4 million; adjusted net income down 18% to $49.6 million.

• Adjusted EPS was $0.61, down 14% YoY; reported EPS $0.48, down 27%.

• Inventory down 12% YoY to $324 million; cash at $164.5 million; total debt at $74.9 million; $300 million revolver undrawn.

• Free cash flow for the nine months was $50.1 million, with FY25 guidance raised to $200 million.

Outlook and guidance

• FY25 sales growth expected at 1%-2% YoY, with C&E up mid-single digits and Drinkware down slightly; international sales to grow 15%-20%.

• Gross margin guidance: 56.5%-57%, with $40 million tariff impact; adjusted operating margin forecasted at 14.0%-14.5%.

• Adjusted EPS projected at $2.38-$2.49, including a $0.40 tariff impact.

• Free cash flow forecasted at ~$200 million; capex at $50 million.

• Share repurchase target increased to $300 million for 2025.