YETI Holdings (NYSE:YETI) shares climbed 9.6% in premarket trading after the company reported first-quarter results that exceeded Wall Street expectations and lifted the lower end of its full-year guidance.
The company posted adjusted earnings per share of $0.26 for the quarter, outperforming analyst forecasts of $0.18 by $0.08. Revenue increased 8% year over year to $380.4 million, ahead of the consensus estimate of $374.9 million.
YETI said incremental tariffs negatively affected adjusted EPS by approximately $0.09 during the quarter. Despite that impact, the company raised its fiscal 2026 adjusted EPS outlook to a range of $2.83 to $2.89, with the midpoint of $2.86 exceeding analyst expectations of $2.81.
Wholesale Growth Drives Strong Quarterly Performance
Sales through YETI’s wholesale division jumped 19% to $183.6 million, representing the company’s strongest quarterly wholesale growth in more than three years.
Direct-to-consumer revenue was unchanged at $196.8 million, as gains across YETI’s websites, Amazon Marketplace and physical retail stores were offset by weaker corporate sales activity.
Within product categories, Coolers & Equipment revenue rose 11% to $156.1 million, while Drinkware sales increased 5% to $216.9 million.
“Our first quarter results marked a great start to 2026, building upon and accelerating our momentum from the fourth quarter,” said Matt Reintjes, president and chief executive officer of YETI. “YETI saw exceptionally strong US consumer sell-through demand across both Drinkware and Coolers & Equipment.”
YETI Raises Sales and Profitability Forecasts
The company increased the lower end of its fiscal 2026 sales growth guidance to a range of 7% to 8%, compared with its previous forecast of 6% to 8%.
YETI also raised its adjusted operating income growth outlook to between 8% and 10%, versus the earlier expectation of 6% to 8%.
The company now expects adjusted operating margins of approximately 14.6%, up from its prior estimate of 14.4%.
Board Expands Share Buyback Programme
YETI’s board of directors also approved an expansion of the company’s share repurchase programme, increasing total buyback authorization to $500 million.