YETI Cuts 2026 Adjusted Sales Outlook After Slower Quarter

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter sales rose 4% to $509.4 million as the company trimmed full-year adjusted sales growth to about 6% from 7% to 8%.

YETI Holdings, Inc. (YETI) reported third-quarter sales of $509.4 million, a 4% increase that slowed from 9% growth in the second quarter, and cut its full-year adjusted sales outlook to approximately 6% from a prior range of 7% to 8%, citing a more cautious consumer environment through the balance of the year.

Adjusted sales, which exclude current-period adjustments to 2023 product recall reserves, rose 6% to $517.9 million. Beginning in the third quarter, the company excluded those recall-reserve adjustments from non-GAAP measures, a change from the approach used with fourth-quarter 2025 results.

Chair, President and Chief Executive Officer Matt Reintjes said demand was uneven at times, particularly in the United States and Canada, and that the company anticipates the consumer environment will remain cautious and put pressure on demand in the fourth quarter.

The mix of the business shifted. Wholesale channel sales increased 19% to $237.3 million, accelerating from 10% growth in the prior quarter, driven by the United States, Europe and Australia. Direct-to-consumer sales decreased 6% to $272.2 million, reversing 7% growth in the second quarter; DTC adjusted sales decreased 3% to $280.7 million, primarily due to declines in U.S. owned e-commerce and the U.S. Amazon Marketplace, partially offset by international growth and Corporate Sales.

Drinkware sales increased 8% to $284.0 million, accelerating from 2% growth in the prior quarter, on international and U.S. demand. Coolers & Equipment sales were flat at $215.6 million, reversing 16% growth in the second quarter; adjusted Coolers & Equipment sales increased 4% to $224.1 million. International sales increased 19% to $119.1 million, matching the prior quarter’s rate, reflecting Europe, Australia and Japan. U.S. sales increased 1% to $390.3 million, slowing from 6% growth in the second quarter; U.S. adjusted sales increased 3% to $398.8 million.

Gross margin increased 180 basis points to 57.7%. The company said the expansion included a 200 basis point favorable impact from lower net tariff costs and a 110 basis point operational benefit from pricing discipline and lower inbound freight, partially offset by higher commodity-driven product costs and a 130 basis point impact from product recall reserves. Adjusted gross margin increased 310 basis points to 59.0%.

Operating income increased 12% to $61.0 million, or 12.0% of sales. Adjusted operating income increased 35% to $90.0 million, or 17.4% of adjusted sales. Net income increased 13% to $44.4 million, or $0.60 a share. Adjusted net income increased 35% to $67.2 million, or $0.91 a share.

Reintjes said strong operating discipline drove margin expansion, with profits growing significantly faster than sales, and that free cash flow generation supported growth plans and share repurchases. The company repurchased approximately 0.5 million shares for $20 million in the quarter, bringing 2026 repurchases to about $150 million, with approximately $350 million remaining under a $500 million authorization.

For fiscal 2026, YETI now expects adjusted sales growth of approximately 6%, adjusted operating income growth of 7% to 9% with an adjusted operating income margin of approximately 14.9%, and adjusted EPS of $2.90 to $2.95, representing 16% to 18% growth, compared with a prior outlook of $2.94 to $3.00. It also expects free cash flow of $200 million to $225 million.

Inventory increased 22% to $394.2 million, which the company said reflected a buildup for fourth-quarter demand and 2027 growth against a year-earlier period of lower inventory from supply constraints. Cash was $73.8 million as of October 3, 2026, with an undrawn $300 million revolving credit facility.