YETI reported third quarter 2026 adjusted EPS of $0.91, exceeding the $0.84 estimate, although net sales of $509.4 million fell short of the projected $523.1 million. While international momentum remained strong, management lowered its full-year 2026 sales and earnings outlook, citing uneven North American demand and a more cautious discretionary spending environment.
Key Highlights
- Adjusted gross margin expanded 310 basis points to 59.0%, driven by lower net tariff costs and operational efficiencies.
- International sales grew 19% to $119.1 million, led by robust performance in Europe and Australia alongside expansion in Japan.
- Wholesale channel sales surged 19% to $237.3 million, while Direct-to-Consumer adjusted sales declined 3% due to softness in U.S. e-commerce.
- Drinkware category revenue increased 8% to $284.0 million, supported by product innovation and core portfolio strength.
- Full-year 2026 adjusted sales growth guidance was revised to approximately 6%, down from the previous range of 7% to 8%.