Yeti Holdings (1YN) Q2 2026 Earnings Report

The call presented a broadly constructive picture: solid top-line growth (9% YoY), strong international momentum (+19%), notable margin improvement (adjusted gross margin +170 bps) and upgraded full-year guidance for margins and EPS. These positives were balanced against near-term profitability pressure from OpEx timing (brand campaign), inflationary and tariff headwinds (including a one-time tariff refund benefit in Q2), a material decline in cash versus last year and some regional/channel softness (Canada, corporate sales). Management emphasized diversification, product/platform expansion, disciplined capital allocation (significant share repurchases), and confidence in long-term runway—leading to guidance that assumes stable growth for the year but with cautious assumptions about tariffs and input-cost inflation.

YETI updated its 2026 guidance calling for full‑year sales growth of 7–8% (U.S. low‑ to mid‑single‑digit, international high‑teens to 20%), with Coolers & Equipment expected to grow high‑single to low‑double digits and Drinkware mid‑single digits; by channel, wholesale is guided to high‑single to low‑double‑digit growth and D2C to mid‑single digits. Profitability targets were raised: adjusted gross margin 57.5–58% (up 100 bps vs prior guidance), adjusted operating income margin ~14.9% (up 30 bps), adjusted operating income growth 10–12%, and management expects H2 operating margins to expand ~280 bps year‑over‑year; the plan assumes tariffs revert to ~20% in September and includes a one‑time IEEPA refund benefit (~$8.2M, ~170 bps benefit expensed in 2026 and ~$0.08 to EPS, netting ~60 bps benefit to adjusted gross margin). The company now expects adjusted EPS of $2.94–$3.00 (up 19–21%), an effective tax rate of ~24%, ~75.4M diluted shares outstanding (reflecting 2.8M shares/$130M repurchased in Q2 and ~$370M remaining authorization), capex of $60–70M, and free cash flow of $200–225M.