Yeti beat analyst estimates for sales and earnings in the first quarter as the maker of insulated drinkware and coolers positioned itself to weather what it expects could be a difficult market environment.
Net income was $16.6 million, or 20 cents per diluted share, versus $15.9 million, or 18 cents per diluted share, in the year-before quarter. Adjusted for one-time events, net income was $25.8 million, or 31 cents per diluted share, versus $29.3 million, or 34 cents per diluted share in the year-previous period, the company reported.
Yeti topped a MarketBeat analyst consensus estimate for adjusted diluted earnings per share of 27 cents and revenues of $347.7 million.
Sales were $351.1 million versus $341.4 million for the year-prior quarter. Operating income was $21.7 million versus $25.8 million in the prior-year period, while adjusted operating income was $35.2 million versus $39.6 million.
Direct-to-consumer sales increased 4% to $196.2 million in the quarter year over year, primarily due to growth in the Coolers & Equipment segment, Yeti noted, as its wholesale segment sales increased 1% to $154.9 million, primarily due to growth in coolers and equipment.
Yeti Drinkware sales decreased 4% to $205.6 million as a decline in the United States market offset growth in international regions, with performance in the segment also impacted by a challenging comparison given 13% growth in the year-past quarter, as well as the strategic shift to prioritize supply chain diversification over new innovation in the just-completed period. Coolers & Drinkware Equipment sales increased 17% to $140.2 million with growth in U.S. and international markets driven by strong performance in bags and hard coolers.
Sales in the U.S. slipped 2% to $271.3 million in the quarter year over year while international sales advanced 22% to $79.9 million.
In announcing the financial results, Matt Reintjes, Yeti president and CEO, said, “A strong start to 2025 showcased our growing global brand and broadening product portfolio alongside the operational execution that has been a hallmark of Yeti. We exited the first quarter on our full-year plan before the significant tariff disruption announced in April. As we now look at the changing macro and consumer environment, we remain confident that our durable balance sheet and strong gross and operating margins will allow us to continue to drive innovation, supply chain transformation and global expansion during this time. Yeti’s strong free cash flow generation and balance sheet provides us the flexibility to navigate this highly fluid trade environment. Our strategic supply chain diversification efforts are ahead of plan, and, as previously indicated, we are aggressively diversifying our sourcing out of China. As a result, we expect that by the end of 2025, we will have limited exposure to future goods sourced from China. So that going forward, less than 5% of our total cost of goods will be related to products from China for the U.S. market.”
Reintjes added Yeti’s outlook for the year reflects confidence in the business and consideration of anticipated headwinds, including the projected impact of tariffs and supply disruptions.
“Despite a more complex macro environment than we faced at the start of the year, we remain focused on execution and positioning Yeti for long-term, sustainable growth by accelerating the pace of product innovation and materially transforming our supply chain to reduce reliance on China, while maintaining strong operating discipline to protect our fortress balance sheet,” Reintjes said. “Alongside the strength of our balance sheet, our ability to generate cash is intact, even with the disruption from expected tariff impacts. We believe these factors, along with the durability of our brand, will enable us to successfully navigate 2025 and emerge even stronger in 2026.”
