Yeti managed to exceed first-quarter expectations, despite the impact of tariffs on earnings, as the company adjusted its annual financial forecast.
Net income was $9.9 million, or 13 cents per diluted share, compared to $16.6 million, or 20 cents per diluted share, in the prior year quarter. Net income per diluted share in the current quarter included an unfavorable net impact from incremental tariff costs of about nine cents.
Adjusted for one-time events, net income was $19.8 million, or 26 cents per diluted share, versus $25.8 million, or 31 cents per diluted share, in the year-before period, Yeti noted.
A Zacks Investment Research analyst consensus estimate was for adjusted diluted earnings per share of 17 cents and revenue of $374.36 million.
Sales increased 8% to $380.4 million year over year, the company reported, driven by broad-based performance across key product categories and channels. Operating income was $12.4 million versus $21.7 million in the year-earlier period, while adjusted operating income was $26.6 million versus $35.2 million.
Sales in the United States grew 8% year over year to $293.1 million in the quarter, driven by growth in both Coolers & Equipment and Drinkware, reflecting strong consumer demand trends. Demand was robust in the wholesale channel, as well as on Yeti websites, Amazon Marketplace, and the company’s retail operation, it stated, partially offset by a decline in corporate sales.
International sales increased 9% to $87.3 million, with strong growth in Europe, gains in Australia and Canada and continued momentum in Japan. Strong demand in the wholesale channel and on Amazon Marketplace was partially offset by a decline in corporate sales, the company reported.
Wholesale channel sales advanced 19% to $183.6 million, driven by strong growth across the United States and international regions, reflecting strong consumer demand, Yeti noted, while direct-to-consumer channel sales came in flat at $196.8 million. Consumer demand across Yeti websites, Amazon Marketplace and the company’s retail stores was strong and tracked in line with the overall corporate growth rate during the quarter but was somewhat offset by the decline in global corporate sales.
Coolers & Equipment sales increased 11% to $156.1 million, primarily driven by soft coolers, bags, hard coolers, and cargo. Yeti maintained, reflecting strength across core and expanded categories. Drinkware sales increased 5% to $216.9 million, with U.S. and international growth supported by continued innovation in the Drinkware product lineup, partially offset by the decline in corporate sales.
As for guidance, Yeti raised the lower end of the 2026 sales growth outlook to 7% to 8%, up from 6% to 8%, while also boosting its earnings per share expectation to $2.83 to $2.89, up from $2.77 to $2.83 previously.
In announcing the financial numbers, Matt Reintjes, Yeti president and CEO, said, “Our first quarter results marked a great start to 2026, building upon and accelerating our momentum from the fourth quarter. Yeti saw exceptionally strong U.S. consumer sell-through demand across both Drinkware and Coolers & Equipment. We delivered robust top- and bottom‑line execution that was broad‑based across categories and channels. The response to the Yeti brand and our continued pace of innovation fueled overall double-digit sales growth in Coolers & Equipment, along with mid-single-digit growth in Drinkware, including a return to growth in the U.S. Drinkware business. Overall, our global wholesale channel grew 19% on the back of continued strength in consumer demand and demand from our partners for our expanding innovation. While particularly cautious ordering from our corporate partners across all global regions was a meaningful growth drag in the quarter, our results reflect the strength of our broader direct-to-consumer channels in both Drinkware and Coolers & Equipment.”
As the company looks forward to the year ahead, Reintjes said Yeti is driving “strategic growth initiatives reaching new, large audiences of global enthusiasts, delivering core category expansion while scaling proven adjacencies and entering global markets with strong economics. The investments we’ve made over 20 years of building Yeti show up in earned, repeatable and disciplined growth supported by innovation, supply chain flexibility and broadening global capabilities.”
