Yeti Earnings Prep: Ice Cold Cash
YETI’s story has been one of growth. At least, until 2025.
After a decade of expansion from $424M (FY18) to a $1,094M peak (FY24), it was then that its Drinkware business flattened and fell 0.8% to $1,086M. When YETI reports Thursday morning, the question will be whether international and category diversification can keep carrying the business, especially in the face of tariff headwinds.
Yeti generates revenue through Drinkware, Coolers & Equipment ($748M, 40% of FY25 sales, covering hard coolers, soft coolers, bags, cargo, and outdoor-living gear), and a small Other category ($34M, 2%) of apparel and ice substitutes. The Rambler tumbler scaled the company past $1B in revenue, with Drinkware mix peaking at 62% of sales in FY23 before stepping back to 58% in FY25.
Management’s response has been to diversify across three axes: 1) Manufacturing, from China Reliance to sourcing from Thailand, Malaysia, Vietnam, the Philippines, Mexico, and Poland; 2) Geographic expansion into Australia, Europe, and Japan (launched Q2 FY25); and 3) Category extension through acquired brands like Mystery Ranch in technical bags, Butter Pat in cookware, Helimix in shaker bottles, Powered Cooling in active cooling.
So heading into Thursday, here’s what we’re watching:
Drinkware Growth. Q4 FY25 Drinkware grew 6%, the best result in over a year, with US Drinkware flat and international carrying it. Q1 FY26 is a clean 13-week comparable (Q4 had 14 weeks). We’re watching for total Drinkware at mid-single digits or better, with US Drinkware specifically returning to growth.
International. International grew +25% in Q4 FY25, +16% on the year, now 19% of full-year sales up from 4% in FY19. Japan sits in the prior-year comparison base for the first time. We’re watching for international growth holding above +15%.
The Tariff Margin Math. Q4 FY25 adjusted operating margin compressed 250 bps on tariff costs. Full-year gross margin went from 58.1% to 57.4%, a 70 bps step-down. The FY26 guide assumes another 200 bps of incremental tariff drag and still expects flat operating margin, requiring about 200 bps of underlying expansion from supply chain and selective pricing.
US Performance. US sales fell to $1,474M from $1,490M in FY24, the first US decline on record. Wholesale sell-through outpaced sales into the channel in Q4. We’re watching for US back to positive growth and commentary on Drinkware promotional pressure.
Capital Return. FY25 generated $212M of free cash flow against $297.6M of buybacks, drawing down cash. FY26 plans $100M of buybacks against
$200M+ FCF, leaving room for M&A.
Consensus is $374M of revenue (+6.6%) and $0.17 adjusted EPS (down 45% on tariffs); the stock sits near $41.50. For FY26 management guides 6-8% revenue growth, 14.4% adjusted operating margin (flat YoY), $200M+ free cash flow, and $100M of buybacks against the $297.6M returned in 2025. The most important sentence Thursday will be whatever management says about US Drinkware. The EPS may look ugly on tariffs; the structural read is in everything else.
All data via Revelata’s deepKPI are from YETI’s fiscal 2025 10-K and quarterly 8-K press releases.
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