YETI Holdings, Inc. (YETI): Results of Operations and Financial Condition
YETI Holdings, Inc. (YETI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 YETI Reports Second Quarter 2026 Results Net Sales Increase 9% Raises Full Year 2026 EPS Outlook Returns $130 Million to Shareholders Through Share Repurchases Announces Investor Day on September 17, 2026 in Austin, Texas Austin, Texas, August 13, 2026 – YETI Holding
How this was made
The 30-second read
Why it matters
Traders can update models using the raised 2026 adjusted EPS range ($2.94-$3.00) and higher adjusted operating income margin (14.9%), while also adjusting for the quantified tariff refund benefit that inflated reported and adjusted margins/EPS.
Market read
The filing combines a fresh earnings/guidance datapoint with capital return, which typically drives near-term repricing, but tariff refund contribution raises normalization risk.
What to watch
SG&A rose 17% (and adjusted SG&A 19%) due to campaign timing, inflation in distribution and fulfillment, and international headcount investments, which could pressure future margins if growth slows.
YETI Reports Second Quarter 2026 Results Net Sales Increase 9% Raises Full Year 2026 EPS Outlook Returns $130 Million to Shareholders Through Share Repurchases
Sales grew 9% with broad-based channel, category and international growth, while the company raised adjusted operating-income-margin and adjusted-EPS outlook. Reported profitability benefited substantially from IEEPA tariff refunds, and adjusted operating income and adjusted net income declined as SG&A growth exceeded adjusted gross-profit growth.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Sales growth | Up 7% to 8% | increased 9% | above |
| Adjusted operating income | Up 8% to 10% | decreased 7% | below |
| Adjusted operating income as a percentage of sales | 14.6% | 14.1% | below |
| Adjusted EPS | $2.83 to $2.89 Up 14% to 17% | $0.67 | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| SalesGAAP | $483.9 million | – | increased 9% |
| Gross profitGAAP | $322.5 million | – | increased 25% |
| Gross marginGAAP | 66.7% | – | increased 890 basis points |
| Adjusted gross profitnon-GAAP | $288.1 million | – | increased 12% |
| Adjusted gross marginnon-GAAP | 59.5% | – | increased 170 basis points |
| Selling, general, and administrative expensesGAAP | $229.0 million | – | increased 17% |
| Selling, general, and administrative expenses as a percentage of salesGAAP | 47.3% | – | increased 340 basis points |
| Adjusted selling, general, and administrative expensesnon-GAAP | $219.9 million | – | increased 19% |
| Adjusted selling, general, and administrative expenses as a percentage of salesnon-GAAP | 45.4% | – | increased 410 basis points |
| Operating incomeGAAP | $93.5 million | – | increased 51% |
| Operating income as a percentage of salesGAAP | 19.3% | – | – |
| Adjusted operating incomenon-GAAP | $68.2 million | – | decreased 7% |
| Adjusted operating income as a percentage of salesnon-GAAP | 14.1% | – | – |
| Net incomeGAAP | $71.3 million | – | increased 39% |
| Net income as a percentage of salesGAAP | 14.7% | – | – |
| Net income per diluted shareGAAP | $0.94 | – | increased 54% |
| Adjusted net incomenon-GAAP | $50.7 million | – | decreased 8% |
| Adjusted net income as a percentage of salesnon-GAAP | 10.5% | – | – |
| Adjusted net income per diluted sharenon-GAAP | $0.67 | – | increased 2% |
| Total net benefit of the IEEPA tariff refundother | $45.6 million | – | – |
| Inventoryother | $359.1 million | – | increased 5% |
| Cashother | $59.8 million | – | – |
| Total debt, excluding finance leases and unamortized deferred financing feesother | $101.7 million | – | – |
| Available capacity under the Revolving Credit Facilityother | $270 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wholesale channel salesStrong growth across the US and international regions, reflecting healthy consumer demand. | $218.0 million | – | increased 10% |
| Direct-to-consumer channel salesRobust performance in Amazon Marketplace as well as growth in YETI websites and YETI retail stores. | $265.9 million | – | increased 7% |
| Coolers & Equipment salesStrong performance in bags, soft coolers, cases & storage, and outdoor living. | $232.4 million | – | increased 16% |
| Drinkware salesInternational growth and continued innovation in the Drinkware product portfolio. | $241.4 million | – | increased 2% |
| US salesGrowth in Coolers & Equipment, with robust wholesale demand as well as Amazon Marketplace and YETI retail demand. | $391.0 million | – | increased 6% |
| International salesStrong growth in Europe and Australia, as well as growth in Canada and Japan, supported by growth across key channels and increased brand awareness. | $92.9 million | – | increased 19% |
Fiscal 2026 outlook
- RevenueSales growth Up 7% to 8%
- Tax rateEffective tax rate (GAAP) 24%
- NoteAdjusted operating income Up 10% to 12%
- NoteAdjusted operating income as a percentage of sales 14.9%
- NoteAdjusted EPS $2.94 to $3.00 Up 19% to 21%
- NoteDiluted weighted average shares outstanding 75.4 million
- NoteCapital expenditures $60 to $70 million
- NoteFree cash flow $200 million to $225 million
- NoteThis outlook assumes that US tariff rates will return to approximately 20% in the second half of 2026.
- NoteThe non-GAAP metrics of this outlook exclude the net benefit from IEEPA tariff refunds associated with tariffs expensed in 2025.
Capital returns
- Repurchased 2.8 million shares for $130.0 million in the second quarter of 2026.
- Approximately $370.0 million remained available for repurchases under the share repurchase program as of July 4, 2026.
- Existing share repurchase authorization: $500 million.
What drove it
- Sales growth reflected strong consumer demand across channels, accelerating growth in Coolers & Equipment, and continued momentum across international regions.
- GAAP gross margin benefited from continued pricing discipline, product cost management and other factors, plus IEEPA tariff refunds.
- The $42.6 million net benefit recognized as a reduction of cost of goods sold favorably impacted gross profit and gross margin, while higher year-over-year tariff costs created a 110 basis point unfavorable gross-margin impact.
- SG&A reflected the timing shift of the brand campaign into the second quarter, inflationary pressure in distribution and fulfillment costs, higher incentive compensation expense, and investments in international-expansion headcount.
- The outlook improvement reflects strong year-to-date sales, strength in gross margins, and timing of share repurchases, partly offset by growth investments and incremental inflationary pressures on operations.
Concerns
- Adjusted operating income decreased 7% to $68.2 million and adjusted net income decreased 8% to $50.7 million.
- SG&A expenses increased 17% to $229.0 million and adjusted SG&A expenses increased 19% to $219.9 million.
- Drinkware sales increased 2% to $241.4 million, below Coolers & Equipment growth of 16%.
- The outlook assumes that US tariff rates will return to approximately 20% in the second half of 2026.
- Reported GAAP results included an approximately $0.40 net tariff benefit to net income per diluted share.
What to watch
- Whether Coolers & Equipment continues to outpace Drinkware.
- International execution in Europe, Asia, Australia, New Zealand, Canada and Japan.
- The effect of tariff rates and IEEPA tariff refunds on gross margin and EPS.
- Distribution and fulfillment inflation, brand-campaign timing, incentive compensation, and international-expansion investment.
- YETI Investor Day on Thursday, September 17, 2026, in Austin, Texas.
Balance sheet and cash flow
- Cash of $59.8 million as of the end of the second quarter of 2026.
- $101.7 million of total debt, excluding finance leases and unamortized deferred financing fees, as of the end of the second quarter of 2026.
- $270 million of available capacity under the $300 million Revolving Credit Facility as of the end of the second quarter of 2026.
- Inventory increased 5% to $359.1 million.
- The company continues to expect strong free cash flow generation.
Analysis
YETI delivered $483.9 million of sales, up 9%, with growth across both channels and product categories. Wholesale sales increased 10% and DTC sales increased 7%, while Coolers & Equipment increased 16% versus 2% growth in Drinkware. International sales increased 19%, ahead of US sales growth of 6%, supported by Europe and Australia as well as Canada and Japan.
Reported gross margin expanded 890 basis points to 66.7%, but the result included the effect of IEEPA tariff refunds. The company recorded a $42.6 million net benefit as a reduction of cost of goods sold, and the total net benefit from the IEEPA tariff refund was $45.6 million. On an adjusted basis, gross margin increased 170 basis points to 59.5%, including 110 basis points of favorable operational drivers and a 60 basis point net tariff benefit.
Cost growth was the key offset to the underlying revenue and adjusted gross-profit performance. GAAP SG&A increased 17% to $229.0 million and adjusted SG&A increased 19% to $219.9 million, driven by campaign timing, distribution and fulfillment inflation, incentive compensation, and international investment. Consequently, adjusted operating income decreased 7% to $68.2 million and adjusted net income decreased 8% to $50.7 million, despite adjusted EPS increasing 2% to $0.67.
Capital allocation was active, with 2.8 million shares repurchased for $130.0 million and approximately $370.0 million remaining under the authorization. Liquidity included $59.8 million of cash, $101.7 million of total debt excluding specified items, and $270 million of revolver capacity. Inventory increased 5% to $359.1 million.
The company maintained sales growth guidance of Up 7% to 8% while lifting adjusted operating-income growth to Up 10% to 12%, adjusted operating margin to 14.9%, and adjusted EPS to $2.94 to $3.00. The outlook embeds an assumption that US tariff rates will return to approximately 20% in the second half of 2026. Attention should remain on whether growth investments and operating inflation moderate sufficiently to support the higher full-year adjusted-profit outlook, and on the extent to which tariff effects influence reported versus adjusted profitability.
Management, verbatim
YETI delivered a strong second quarter, with 9% top-line growth, and stronger-than-expected profitability. We also completed $130 million in share repurchases, reflecting the durability of our business model and the cash-generating strength of our operating platform.
Matt Reintjes, Chair of the Board and Chief Executive Officer
In an uneven consumer environment, demand across our product platforms remained strong, driven by the durability, design, and performance that differentiate YETI.
Matt Reintjes, Chair of the Board and Chief Executive Officer
The second quarter reinforced our confidence in the trajectory ahead. YETI is a stronger, broader, and more global company, and we remain confident in our ability to drive long-term growth and profitability, unlocking the full global potential of YETI and driving significant shareholder value.
Matt Reintjes, Chair of the Board and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-year dollar amounts for sales, gross profit, gross margin, SG&A, operating income, net income, EPS, inventory, cash and debt.
- Prior-quarter figures and sequential comparisons for reported metrics.
- Second-quarter operating cash flow, free cash flow, capital expenditures, and dividends.
- Second-quarter GAAP effective tax rate.
- Second-quarter diluted weighted average shares outstanding.
- Second-quarter adjusted operating-income margin year-over-year change.
- Fiscal 2026 gross-margin guidance and operating-expense guidance.
- Actual results needed to assess prior guidance for GAAP effective tax rate, diluted weighted average shares outstanding, capital expenditures, and free cash flow.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is YETI’s SEC Form 8-K (Item 2.02) with Q2 2026 results and updated full-year 2026 outlook, including a repurchase authorization and an Investor Day date.
Ticker impact
YETI reported Q2 results with 9% net sales growth, raised full-year 2026 adjusted EPS to $2.94-$3.00, and authorized $130M buybacks.
Near-term bias upward on outlook and buyback, with volatility risk if investors discount the IEEPA tariff refund contribution.
The filing includes specific Q2 and full-year guidance changes (sales growth range, adjusted operating margin, adjusted EPS range) plus quantified tariff benefit and repurchase size, which are direct drivers for valuation and sentiment.
Market effects
Consumer durable and branded apparel/outdoor peers may see read-through on demand resilience and margin management, especially around tariff pass-through and pricing discipline.
International reacceleration (19% sales growth) highlights continued strength outside the US, potentially supporting sentiment toward global retail channels.
Tariff-related IEEPA refund mechanics are a broader risk factor for import-heavy consumer brands, affecting gross margin comparability.
Counterpoint
The margin and EPS strength is partly boosted by IEEPA tariff refunds, so normalized gross margin could be lower than headline results imply.
Key entities
- companyYETI Holdings, Inc.
Outdoor lifestyle brand reporting Q2 2026 results, raising full-year 2026 adjusted EPS outlook, and announcing $130M share repurchases plus an Investor Day.
