YETI Q2 Earnings Call Highlights

YETI NYSE: YETI reported second-quarter fiscal 2026 sales growth of 9%, supported by gains across coolers and equipment, wholesale, direct-to-consumer channels and international markets. The company also raised its full-year operating margin and adjusted earnings outlook, while maintaining its sales growth forecast.

Chief Executive Officer Matt Reintjes said the quarter reflected the benefits of investments in brand development, product innovation, commercialization and international capabilities. He said consumer behavior remains uneven, with pockets of caution and value-seeking, but that demand for the brand has remained healthy across categories and channels.

“The business today is poised for scale,” Reintjes said, describing YETI as broader, operationally sharper and better positioned to manage uncertainty than in prior periods.

Sales Growth Led by Coolers, Equipment and International Second-quarter sales totaled approximately $484 million, up 9% from a year earlier. Coolers and equipment revenue increased 16% to $232 million, driven by bags, soft coolers, cases and storage, and outdoor-living products. The company cited strong demand for its Daytrip insulated bags and Camino tote products, as well as momentum in personal hard coolers, including the Roadie 15 and newly launched Roadie 8. Drinkware sales rose 2% to $241 million, marking the category’s third consecutive quarter of growth. U.S. drinkware sales were flat amid category competition, though YETI said U.S. end-consumer demand increased by a mid-single-digit percentage during the quarter. International markets and new product innovation supported overall drinkware growth. Reintjes said YETI expects roughly a 600-basis-point drag on U.S. drinkware growth in 2026 from three SKUs associated with a narrow, trend-driven period in the category. He said the products are expected to largely lap their comparisons by year-end, resetting the business heading into 2027.

Wholesale sales increased 10% to $218 million. Direct-to-consumer sales rose 7% to $266 million. U.S. sales increased 6% to $391 million. International sales grew 19% to $93 million. Chief Financial Officer Scott Bomar said wholesale sell-through was robust and inventory in the channel remained healthy. Direct-to-consumer growth was supported by marketplaces, e-commerce and YETI retail stores. The company opened stores in Boston and Atlanta during the quarter. International growth was led by Europe, Australia and Japan. YETI said Europe saw strong digital, marketplace and wholesale demand, while Japan continued to gain traction in its first full year as a direct business. The company has expanded to more than 500 wholesale doors in Japan and recently launched an e-commerce site in the country. Canada produced positive sales growth, though results were below YETI’s expectations as cautious wholesale inventory purchasing offset strong direct-to-consumer performance and consumer sell-through.

Margins Improve Despite Cost and Tariff Pressures Adjusted gross profit rose 12% to $288 million, while adjusted gross margin expanded 170 basis points to 59.5%. Bomar attributed the improvement to pricing discipline, product cost management, supply-chain optimization and other operational factors. The quarter also included an $8.2 million benefit from refunds of International Emergency Economic Powers Act tariffs previously expensed in 2026. The refunds contributed 170 basis points to adjusted gross margin, partly offset by a 110-basis-point impact from higher year-over-year realized tariff costs. Adjusted selling, general and administrative expense incre...