Key Takeaways
- Reports Q1 adjusted EPS of $0.26, beating estimates of $0.17
- Raises full-year 2026 sales growth forecast to 7 to 8 percent
- Wholesale channel surges 19 percent, offsetting flat DTC sales
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YETI Raises 2026 Outlook After Q1 Sales Jump 8 Percent
YETI Holdings Inc. (NYSE:YETI) raised its full-year sales and profit guidance after first-quarter revenue climbed 8.3 percent, driven by a surge in its wholesale business that overcame softness in corporate orders and lingering tariff pressures.
“The earnings power of the model,” Chief Executive Officer Matt Reintjes said on the company’s earnings call, pointing to diversified demand and scaling platforms. “We’ve entered the second quarter with global demand trends showing strength, continuing momentum from the last two quarters.”
For the first quarter of 2026, YETI reported sales of $380.4 million, beating the consensus estimate of $374.9 million. Adjusted earnings per share of $0.26 topped analyst expectations of $0.17. However, adjusted net income fell 23 percent to $19.8 million from the prior year, which the company attributed to a $0.09 per share impact from tariffs.
The company now expects full-year sales growth of 7 to 8 percent, up from a prior range of 6 to 8 percent. YETI also lifted its adjusted earnings per share outlook to a range of $2.83 to $2.89, an increase from the previous forecast of $2.77 to $2.83. Following the report, the company’s stock surged 15.7 percent in pre-market trading.
The standout performer was the wholesale channel, which saw sales jump 19 percent to $184 million, its best quarterly performance in over three years. Management said sell-in was better aligned with strong sell-through trends. This performance helped offset a flat direct-to-consumer (DTC) channel, which was held back by a decline in corporate sales. According to executives, the corporate channel accounts for about 25 percent of DTC sales.
By category, the Drinkware segment returned to growth in the U.S., with global sales rising 5 percent to $217 million. The Coolers and Equipment division posted an 11 percent increase in sales to $156 million, led by strong demand for soft coolers and bags. International sales grew 9 percent to $87 million, though this included an 800-basis-point benefit from favorable currency exchange.
Despite the strong top-line performance, adjusted gross margin fell 200 basis points to 55.3 percent, pressured by a 280-basis-point headwind from higher tariff costs. Looking ahead, the company expects gross margins to improve in the second half of the year as it laps the tariff impacts.
The updated guidance suggests management is confident that momentum in its core product lines and international expansion can navigate a mixed consumer environment. The company also signaled confidence by increasing its share repurchase authorization by approximately $350 million, bringing the total to $500 million. Investors will watch the upcoming second-quarter results for continued strength in the wholesale channel and a potential rebound in the corporate sales business.
This article is for informational purposes only and does not constitute investment advice.
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