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Revenue: $487.8 million, a 2% increase year-over-year.

Drinkware Sales: Declined 4% to $263.8 million.

Coolers & Equipment Sales: Increased 12% to $215.4 million.

Direct-to-Consumer Sales: Grew 3% to $288.7 million.

Wholesale Sales: Increased 1% to $199 million.

International Sales: Grew 14% to $100.4 million, representing 21% of total sales.

Adjusted Gross Margin: 55.9%, down from 58.2% in the prior year.

Adjusted Operating Income: Decreased 16% to $66.6 million.

Adjusted Net Income: Decreased 18% to $49.6 million.

Adjusted EPS: Decreased 14% to $0.61.

Cash Position: $164.5 million at the end of the quarter.

Inventory: Decreased 12% year-over-year to $324 million.

Share Repurchases: $150 million in Q3, $173 million year-to-date.

Full Year Sales Outlook: Expected to increase between 1% and 2%.

Free Cash Flow Outlook: Approximately $200 million for 2025.

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Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

YETI Holdings Inc (NYSE:YETI) reported a 2% sales growth in the third quarter, reaching $487.8 million, driven by double-digit growth in both the Coolers & Equipment category and international business.

The company is experiencing strong international growth, particularly in Europe, Australia, New Zealand, and Canada, with early contributions from Japan.

YETI's product innovation pipeline is robust, with plans to launch more than 30 new products in 2025, including the YETI Shaker bottle targeting a $2.5 billion market.

The company is expanding its global presence with new partnerships and distribution channels, including a new wholesale partnership with Nordstrom.

YETI is leveraging artificial intelligence to enhance consumer engagement and drive efficiency, including AI-enabled product customization and a conversational shopping assistant on yeti.com.

YETI's Drinkware sales declined by 4% to $263.8 million, with the US market remaining challenged due to promotional activity and cautious wholesale ordering.

The company faced a 230 basis point year-over-year decline in gross profit margin, primarily due to higher tariff costs and a lower mix of Drinkware sales.

US e-commerce performance was softer, with conversion rates remaining pressured, impacting overall performance despite growth in traffic and average order value.

The company is experiencing significant caution in wholesale selling, particularly in the US, leading to a notable gap compared to strong sell-through in Drinkware and Coolers.

YETI's adjusted operating income decreased by 16% to $66.6 million, and adjusted net income decreased by 18% to $49.6 million, reflecting the impact of higher tariff costs.

Q: Matt, you mentioned a long-term growth potential of high single digits to low double digits. Can you elaborate on the building blocks to achieve this growth? A: Matthew Reintjes, President and CEO: Our growth is built on product innovation, brand reach, and global expansion. We have a strong portfolio and are expanding in international markets. Our brand continues to grow globally, reaching new audiences and creating more opportunities. We are on the front end of a global wave, and these elements will drive our growth going forward.

Q: Can you elaborate on the sell-through and sell-in dynamics in the US wholesale market? A: Matthew Reintjes, President and CEO: We focus on sell-through, which shows strong consumer demand for YETI. The sell-in dynamic is sensitive to inventory positions, particularly in the Drinkware category. We expect the category to stabilize, and we are working closely with our wholesale partners on inventory management.

Q: How do you view the scaling opportunity of new sport-focused launches like the Fanatics partnership and the sport jug? A: Matthew Reintjes, President and CEO: We are excited about the opportunities in sports, which complement our outdoor and fishing legacy. The Fanatics partnership offers licensing opportunities and direct-to-consumer channels. We will continue to innovate in this category to expand our audience and drive growth.

Q: What gives you confidence in the implied sales acceleration for Q4, given the choppy consumer demand? A: Mike McMullen, CFO: We expect Drinkware to return to growth in Q4 due to innovation, international growth, and lapping of last year's market dynamics. We have seen strong sell-through and consumer demand, which gives us confidence in our Q4 outlook.

Q: How are you thinking about the impact of tariffs on your business going forward? A: Mike McMullen, CFO: We are not providing guidance beyond 2025, but we are optimizing our sourcing based on tariff rates. We have diversified our supply chain, and some countries we source from do not pay tariffs. We will continue to work on cost optimization and pricing strategies.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.