On August 13, 2026, YETI Holdings (NYSE:YETI) reported second-quarter fiscal 2026 results that showed broad-based top-line expansion and operational progress. Sales climbed 9% year over year to roughly $484 million, with growth spread across every category, channel and region the company reports. CEO Matthew Reintjes told investors the quarter reinforced the company's structural breadth and scalability, even as YETI navigates an uneven consumer backdrop and ongoing macro uncertainty.
Coolers & Equipment led the way, growing 16% to $232 million as newer lines like the Daytrip insulated bags and Camino totes gained traction alongside cases and storage. Management pointed to smaller hard coolers such as the Roadie 15 and the newly launched Roadie 8 as early bright spots, evidence that YETI's product platforms extend well beyond its original hard cooler business. International sales jumped 19% to $93 million, with Europe, Australia and ******* an all posting strong growth. ******* an, in its first full year as a direct business, delivered significant growth in the quarter, and YETI expects to be live in 11 international markets by the end of 2026, up from four at the same time last year. Wholesale sales rose 10% to $218 million, and tracked channel inventory ended the quarter lower, a sign management reads as healthy, demand-driven sell-through rather than a pullback.
Gross margin expanded 170 basis points to 59.5%, with 110 basis points of that coming from pricing discipline and product cost management rather than one-time items. On the back of that performance, YETI raised its full-year gross margin expectation to 57.5%–58.0% (and raised its full-year adjusted EPS guidance range to $2.94–$3.00, up from $2.83–$2.89), while continuing a buyback program that has repurchased more than $600 million in stock since 2024.
Gross margin expansion was offset by operating expense growth during the period. Adjusted SG&A grew 19% to $220 million and deleveraged 410 basis points to 45.4% of sales, driven largely by the brand campaign shifting into the second quarter from the fourth quarter of last year, a higher short-term incentive compensation accrual, and rising distribution and fulfillment costs. That expense growth outpaced the gross margin gains, and adjusted operating income actually fell 7% to $68 million, while adjusted net income dropped 8% to $51 million. Cash on the balance sheet shrank sharply, ending the quarter at approximately $60 million versus $270 million a year earlier, while total debt climbed to $102 million from $76 million.
#quarter
Coolers & Equipment led the way, growing 16% to $232 million as newer lines like the Daytrip insulated bags and Camino totes gained traction alongside cases and storage. Management pointed to smaller hard coolers such as the Roadie 15 and the newly launched Roadie 8 as early bright spots, evidence that YETI's product platforms extend well beyond its original hard cooler business. International sales jumped 19% to $93 million, with Europe, Australia and ******* an all posting strong growth. ******* an, in its first full year as a direct business, delivered significant growth in the quarter, and YETI expects to be live in 11 international markets by the end of 2026, up from four at the same time last year. Wholesale sales rose 10% to $218 million, and tracked channel inventory ended the quarter lower, a sign management reads as healthy, demand-driven sell-through rather than a pullback.
Gross margin expanded 170 basis points to 59.5%, with 110 basis points of that coming from pricing discipline and product cost management rather than one-time items. On the back of that performance, YETI raised its full-year gross margin expectation to 57.5%–58.0% (and raised its full-year adjusted EPS guidance range to $2.94–$3.00, up from $2.83–$2.89), while continuing a buyback program that has repurchased more than $600 million in stock since 2024.
Gross margin expansion was offset by operating expense growth during the period. Adjusted SG&A grew 19% to $220 million and deleveraged 410 basis points to 45.4% of sales, driven largely by the brand campaign shifting into the second quarter from the fourth quarter of last year, a higher short-term incentive compensation accrual, and rising distribution and fulfillment costs. That expense growth outpaced the gross margin gains, and adjusted operating income actually fell 7% to $68 million, while adjusted net income dropped 8% to $51 million. Cash on the balance sheet shrank sharply, ending the quarter at approximately $60 million versus $270 million a year earlier, while total debt climbed to $102 million from $76 million.
#quarter
3 months ago
