YETI Holdings (NYSE:YETI) delivered second-quarter earnings above Wall Street expectations and raised its full-year 2026 adjusted EPS forecast, supported by stronger margins and continued international expansion. Despite the improved earnings outlook, shares slipped 1.65% in premarket trading following the announcement.
Second-quarter earnings exceed expectations
YETI reported adjusted earnings of $0.67 per share for the quarter ended July 4, beating the analyst estimate of $0.55 by $0.12.
Revenue increased 9% year over year to $483.9 million, matching Wall Street expectations.
Growth was supported by strong demand across several areas of the business. Coolers & Equipment sales increased 16%, while international revenue expanded 19%, demonstrating continued momentum outside the company’s core U.S. market.
Drinkware delivered more modest growth, with sales increasing 2% to $241.4 million.
“YETI delivered a strong second quarter, with 9% top-line growth, and stronger-than-expected profitability,” said Matt Reintjes, Chair of the Board and Chief Executive Officer. “We also completed $130 million in share repurchases, reflecting the durability of our business model and the cash-generating strength of our operating platform.”
YETI raises full-year EPS guidance
Following the stronger-than-expected quarter, YETI increased its adjusted earnings outlook for 2026.
The company now expects adjusted EPS of between $2.94 and $3.00, representing annual growth of approximately 19% to 21%.
At $2.97, the midpoint of the new range is comfortably above YETI’s previous guidance of $2.83 to $2.89 per share.
The company maintained its full-year sales growth forecast of 7% to 8%, indicating that the higher earnings expectations are being driven largely by improved profitability rather than a change in anticipated revenue growth.
YETI also raised its adjusted operating income margin forecast to 14.9%, compared with its previous expectation of 14.6%.
Gross margin expands as pricing and costs improve
Profitability strengthened considerably during the second quarter, with adjusted gross margin expanding by 170 basis points to 59.5%.
YETI attributed approximately 110 basis points of the improvement to favourable operational factors, including disciplined pricing and product cost management.
A further 60 basis points came from net tariff benefits.
The company received $45.6 million in refunds related to International Emergency Economic Powers Act tariffs during the quarter, providing an additional benefit to its financial performance.
The combination of pricing discipline, cost management and tariff benefits helped YETI convert its 9% revenue growth into a stronger improvement in earnings.
International markets continue to outperform
International expansion remained one of YETI’s strongest growth drivers during the quarter.
U.S. sales increased 6% to $391.0 million, while international revenue climbed 19% to $92.9 million.
Growth outside the United States was supported by higher sales across Europe, Australia, Canada and Japan, highlighting the increasing geographic diversification of the company’s business.
Coolers & Equipment also continued to outperform Drinkware, with the category’s 16% sales increase providing another important source of growth.
Investor Day set for September
YETI will provide investors with a further update on its strategy when it hosts an Investor Day on September 17, 2026, in Austin, Texas.
The event could offer additional details on the company’s international expansion, product strategy, profitability targets and capital allocation priorities.
Although YETI shares moved modestly lower following the results, the second-quarter report showed stronger-than-expected earnings, expanding margins and robust international growth. The higher full-year EPS and operating margin forecasts also indicate that management expects profitability momentum to continue through the remainder of 2026.