Key Takeaways:
- Wholesale, drinkware, and international markets drove third-quarter growth.
- Direct-to-consumer sales slipped on weaker U.S. ecommerce and Amazon sales.
- Yeti is expanding its store and marketplace presence in Asia.
Yeti Holdings, Inc. lowered its 2026 sales forecast, citing a more cautious consumer environment, even as third-quarter sales grew on wholesale, drinkware, and international gains.
The company now expects 2026 adjusted sales to grow about 6%, down from the 7% to 8% it reiterated at its Investor Day in September. Yeti’s adjusted earnings forecast is $2.90 to $2.95 a diluted share, down from $2.94 to $3.00.
“While demand was uneven at times during the quarter, particularly in the U.S. and Canadian markets, the expanding diversity of our products, channels, and geographies strongly supported our overall performance,” Matt Reintjes, Chief Executive Officer, said in a statement. “Looking ahead, we anticipate the consumer environment will remain cautious and put pressure on demand in Q4.”
Net sales for the quarter ended Oct. 3 rose 4% to $509.4 million. Adjusted net sales, which exclude adjustments to reserves for the company’s 2023 product recalls, increased 6% to $517.9 million.
Gross margin improved 180 basis points to 57.7%, helped by lower net tariff costs. Net income grew 13% to $44.4 million, or 60 cents a diluted share.
Wholesale Up, DTC Down
Wholesale sales rose 19% to $237.3 million on strength in the U.S., Europe, and Australia.
Direct-to-consumer sales fell 6% to $272.2 million, or 3% on an adjusted basis, primarily on declines in Yeti’s own U.S. ecommerce and on the U.S. Amazon marketplace.
Drinkware sales rose 8% to $284 million. Coolers and equipment sales were flat, but adjusted sales rose 4% to $224.1 million on strength in cases and storage, hard coolers, and bags. At Investor Day, Yeti named bags and soft coolers as its next $1 billion product platform.
International sales climbed 19% to $119.1 million, led by Europe and Australia and continued expansion in Japan. U.S. sales edged up 1% to $390.3 million.
“We are seeing continued momentum across Europe and Asia with our first brand stores opening in Japan and Korea and our initial marketplace launch in China in the past few weeks,” Reintjes said.
Inventory rose 22% to $394.2 million, reflecting a low prior-year base and a buildup for fourth-quarter demand and 2027 growth.
