YETI closed out 2025 with what CEO Matt Reintjes described as its strongest quarter of the year, posting 7% revenue growth in Q4 despite softness in the company’s core U.S. market.
The Austin-based company reported fourth-quarter sales of $583.7 million, up from $546.5 million in the prior year period, driven by growth across both its drinkware, and coolers and equipment categories.
For the full year, YETI’s sales increased 2% to $1.87 billion. In the U.S., YETI reported a 1% decline.
“Q4 was our strongest quarter of the year as the YETI brand continued to build momentum,” Reintjes said during the company’s Thursday earnings call. “We’re seeing solid demand, our teams are executing with discipline, and the strategy we’ve been building over the last few years is showing through in the numbers and outlook.”
The results come as YETI prepares for a leadership transition in its finance team and doubles down on international markets.
International Growth Offsets U.S. Softness
YETI’s international markets accelerated as its U.S. business faced ongoing challenges. U.S. sales declined 1% for the full year, with Q4 showing a 2% increase to $447.8 million.
In Q4, international sales grew 25% to $136 million, representing 23% of total quarterly sales. For the full year, international sales increased 16% to $394.4 million
“The international addressable market exceeds the U.S.,” Reintjes said. “International has grown from 2% of sales to 21% since the IPO.”
Growth was broad-based across regions, with strength in Australia and Europe, as well as continued momentum in Japan, which launched in the second quarter of 2025.
In Europe, YETI is focused on scaling in the U.K., unlocking the DACH region and extending across Europe.
Australia delivered its strongest quarter of the year, while Canada showed momentum across wholesale, corporate sales and customization. In Asia, YETI is building infrastructure in Japan for a multi-year growth trajectory, with plans for an ecommerce debut in 2026, a doubled SKU lineup, and continued progress toward expansion into Korea and China.
DTC Outperforms Wholesale
Companywide, the wholesale channel, which accounted for $740.7 million in full-year sales, saw slight declines as retail partners maintained tight inventory planning.
“U.S. wholesale showed ongoing buying caution as inventory planning remains tight among many partners,” Reintjes said.
The direct-to-consumer channel fared better, with full-year sales increasing 4% to $1.13 billion. YETI-owned e-commerce remained a key driver, though the company is working to diversify its presence across both DTC and wholesale channels to meet consumers where they shop.
Q4 Results: Balanced Growth Across Categories
YETI’s fourth quarter performance reflected strength in both major product categories. Drinkware sales grew 6% to $380 million, marking the segment’s best performance in more than a year. Products like the Silo Jugs, Yonder Shaker bottle and Travel Straw Mugs resonated with consumers, executives said.
Coolers & Equipment sales increased 2% to $192 million, with standout performance from the Daytrip Snack Boxes, Skala Hike Packs and GoBox. Bags and soft coolers continued to deliver growth, reinforcing what Reintjes called “the YETI portfolio strength and multi-year opportunity we see ahead.”
Net income for the quarter rose 10% to $58.2 million, though adjusted earnings per share of 92 cents reflected a roughly 15-cent unfavorable impact from tariffs. Gross profit increased 4% to $340.9 million, representing 58.4% of sales — a 180-basis-point decline driven largely by a 310-basis-point hit from higher tariff costs.
Tariffs Negatively Impact Full-Year Net Income
Net income for the year declined 6% to $165.4 million, and adjusted earnings per share fell 1% to $2.03. The company’s gross margin decreased 70 basis points to 57.4%, with a 230-basis-point drag from tariffs. Adjusted operating income margin of 14.4% reflected an approximately 200-basis-point negative impact from tariffs.
Despite the pressure on margins, YETI generated $212 million in free cash flow, exceeding its adjusted net income and enabling approximately $300 million in share repurchases.
Product Innovation
YETI’s product strategy continues to evolve, with the company integrating learnings from its Mystery Ranch acquisition into new offerings. The Ranchero and Skala lines reflect this cross-pollination, bringing technical expertise from the Montana-based backpack maker into YETI’s broader portfolio.
The bags segment has emerged as a growth driver, with soft coolers and cargo products performing well. The company highlighted products like the Daytrip Snack Boxes and Skala Hike Packs as examples of innovation resonating with consumers.
Looking ahead, YETI plans to continue expanding its product lineup, leveraging its specialty dealer base across global markets to match its innovation pipeline.
Former Home Depot VP Scott Bomar Steps In as CFO
YETI announced that Scott Bomar will join the company as senior vice president, chief financial officer and treasurer, effective Feb. 23. Bomar comes to YETI from The Home Depot, where he served as senior vice president of finance since Oct. 2022.
He replaces Mike McMullen, who has been with YETI for a decade, including the last three years as CFO. McMullen will serve in an advisory capacity through May 31 to facilitate the transition.
“Scott brings to YETI more than 20 years of financial and operational leadership across global, consumer-focused retail environments, as well as a blend of strategic insight, deep financial acumen and operational rigor, and experience scaling high-growth businesses,” Reintjes said.
Bomar’s compensation package includes a $725,000 base salary, a sign-on bonus of $500,000, and equity grants totaling $3.5 million in time-based and performance-based restricted stock units.
YETI’s 2026 Outlook
For 2026, YETI projects adjusted sales growth of 6% to 8%, with balanced contributions from both drinkware and its coolers and equipment products. The company expects high-single to low-double-digit growth in coolers and equipment, while drinkware is projected to grow at a mid-single-digit pace.
International sales are expected to grow in the high teens to 20% range, while U.S. growth is forecast in the low- to mid-single digits. Wholesale is expected to grow slightly faster than DTC.
Gross margins are projected to be between 56% and 57%, with adjusted operating income margin holding steady at approximately 14.4%. Adjusted earnings per diluted share are expected to range from $2.77 to $2.83, reflecting 12% to 14% growth.
Capital expenditures are forecast between $60 million and $70 million, with free cash flow projected at $200 million to $225 million.
