YETI (NYSE:YETI) reported fourth-quarter fiscal 2025 results that management described as the company’s strongest quarter of the year, driven by brand momentum, product innovation, and continued international expansion. On the call, President and CEO Matt Reintjes said the quarter strengthened the company’s conviction in YETI’s long-term growth trajectory, while CFO Mike McMullen outlined 2026 guidance that assumes tariffs remain in place throughout the year.
Q4 results: 5% sales growth, led by Drinkware and international
YETI posted adjusted net sales of $583.7 million in the fourth quarter, up 5% year over year. Reintjes said the quarter was fueled by continued momentum across the brand, including 6% growth in Drinkware and 25% growth in international markets.
Coolers and Equipment sales rose 2% to $192 million. Management attributed the modest growth to supply constraints in Daytrip soft cooler bags and Camino totes, and to lapping a strong prior-year comparison in the category.
Channel performance: DTC and wholesale both up; U.S. wholesale remains cautious
Direct-to-consumer sales grew 5% to $394 million, with McMullen citing broad-based growth across Amazon Marketplace, corporate sales, retail stores, and owned e-commerce. Wholesale sales increased 6% to $189 million, led by international performance.
In the U.S. wholesale channel, management said sell-through continued to outpace sell-in, contributing to lower inventory levels at partners. Reintjes characterized tracked channel inventory as “down significantly in 2025,” and said wholesale partners remained cautious in their buying and inventory planning.
On DTC dynamics, Reintjes pointed to elevated cross-channel shopping behavior in the U.S., which he tied to price discovery in a promotional environment. He said YETI’s multi-channel presence—spanning wholesale partners, Amazon Marketplace, and YETI.com—helps the company capture demand even as shoppers compare options across channels.
International growth remains a core driver
International sales grew 25% to $136 million, representing 23% of Q4 revenue, up from 20% a year earlier. Reintjes said international has grown from 2% of sales in 2018 to 21% in 2025, and described the opportunity outside the U.S. as larger than YETI’s domestic addressable market.
Management highlighted Europe as a key growth engine, with “exceptional performance” in the UK and growing traction in Germany and the broader DACH region. Australia delivered its strongest quarter of the year, while Japan was described as a market where YETI has built infrastructure for multi-year growth and expects an e-commerce debut in 2026 with a doubled SKU lineup. Reintjes also referenced Korea and China as markets where YETI is spending energy to establish a presence.
Margins pressured by tariffs; pricing and cost actions partially offset
Adjusted gross profit was $341 million, or 58.4% of sales, down 180 basis points year over year. McMullen attributed the decline to a 310 basis point headwind from higher tariff costs, partially offset by lower product costs and selective price increases implemented earlier in the year.
Adjusted SG&A rose 10% to $246 million, reaching 42.2% of sales. McMullen said the increase reflected investments in marketing, technology, facilities, and global teams, partially offset by distribution and fulfillment leverage. Adjusted operating income declined 14% to $94.7 million (16.2% margin), and adjusted EPS fell to $0.92 from $1.00, which management said included an unfavorable net tariff impact of about $0.15.
2026 outlook: 6% to 8% sales growth; tariffs expected to weigh on first half margins
For fiscal 2026, YETI guided to 6% to 8% net sales growth, with quarterly growth rates expected to be relatively consistent. Key assumptions by management included:
- Coolers and Equipment: high single-digit to low double-digit growth, with slightly stronger growth in the first half.
- Drinkware: mid-single-digit growth, with slightly stronger growth in the second half, supported by international demand and continued innovation.
- International: high teens to 20% growth for the full year, with consistent quarterly growth.
- U.S.: low to mid-single-digit growth for the full year.
YETI guided to 2026 gross margin of 56% to 57%, with the midpoint implying a 90 basis point year-over-year decline. McMullen said the guide embeds roughly 200 basis points of incremental tariff impact in 2026, primarily in the first half, and assumes current tariffs remain in place throughout the year. The company expects year-over-year gross margins to be down about 300 basis points in the first half (with the largest decline in Q1) and to improve year over year in the second half as YETI laps the full impact of tariffs.
On pricing, McMullen said the company expects a similar approach to last year, with pricing expected to contribute roughly 40 basis points to gross margin and timing similar to prior moves announced in Q1. In response to a question about potential tariff relief, he said no relief is contemplated in guidance due to uncertainty, though YETI would remain flexible in how it deploys any benefit.
For operating expenses, YETI expects 3% to 7% growth in 2026, with higher growth in the first half due to an earlier shift in brand marketing spend and a return to a more typical incentive compensation accrual pattern. Adjusted operating income margin is expected to be about 14.4%, consistent with 2025, with adjusted operating income growth of 6% to 8%.
YETI guided to adjusted EPS of $2.77 to $2.83, with McMullen noting an incremental $0.35 net unfavorable impact from higher tariff costs versus 2025. The company also guided to $60 million to $70 million in capital expenditures and free cash flow of $200 million to $225 million.
In capital allocation, YETI reported $212 million of free cash flow for 2025 and said it repurchased $125 million of shares in Q4, bringing full-year repurchases to about $298 million. The company ended Q4 with $188 million in cash and $74 million in debt (excluding finance leases and deferred financing fees). For 2026, YETI plans an additional $100 million in share repurchases.
The call also included a leadership update: McMullen’s last day as CFO will be February 22, after which he will serve in an advisory capacity through May 31. YETI said Scott Bomar, most recently SVP of Finance at The Home Depot, will join as CFO on February 23.
About YETI (NYSE:YETI)
YETI Holdings, Inc is an American outdoor and lifestyle products company known for its premium, performance-driven coolers, drinkware and accessories. The company’s portfolio includes hard coolers under its flagship Tundra series, soft coolers in the Hopper line, and vacuum-insulated drinkware sold under the Rambler brand. YETI’s products are engineered for durability, temperature retention and rugged outdoor use, targeting consumers ranging from avid anglers and hunters to outdoor enthusiasts and everyday users seeking high-quality insulated containers.
Founded in 2006 by brothers Roy and Ryan Seiders in Austin, Texas, YETI began with a focus on building a better cooler that could withstand extreme conditions and maintain ice retention longer than traditional alternatives.
