Aug 13, 2026 earnings call — Brand-led growth and margin outlook
Reported Q2 sales of approximately $484 million, up 9%, and raised full-year gross margin outlook to 57.5% to 58%.
Revenue $0.5B (est $0.5B) · EPS $0.67 (est $0.54)
Key quotes
"In Q2, our national brand campaign, FOUR Letters, brought YETI to life through a powerful showcase of the pursuits and passions of our brand."
"Our second quarter performance demonstrated that our brand is building upon our hard cooler and Drinkware legacy into more platforms across soft coolers, bags and protective cases that increase daily use and reliance."
"We now expect gross margins of 57.5% to 58%, up 100 basis points compared to prior guidance."
Analyst Q&A 9
U.S. demand and growth outlook
Q (Brooke Roach · Goldman Sachs): The analyst asked for detail on the U.S. growth outlook, the slowdown in the forecast against tough compares, quarter-to-date demand by channel, and why management is confident growth will continue.
A: They said U.S. consumer demand was strong in the first half and that in the U.S. consumer demand exceeded reported sales. They said they are confident in the trends but are cautious about the back half because some consumer uncertainty remains, and they reiterated a long-term focus and that double-digit growth remains on the table.
"In fact, in the United States, our consumer demand exceeded our reported sales." — Scott Bomar (CFO)
Drinkware headwinds and supply chain
Q (Randal Konik · Jefferies): The analyst asked whether Drinkware can reaccelerate next year via distribution and new products, and asked for quantified changes in product speed, production, and supply chain moves to meet sellouts.
A: They said they have broadened the Drinkware portfolio beyond a narrow portion of the category and that cycling through a narrow set of SKUs should rebaseline the business by year-end. They also said supply chain diversification has increased nimbleness, they continue to invest to increase capacity and shorten lead times, and inventory is the healthiest it has been in quite some time.
"As the world has been very focused on a narrow portion of the Drinkware category in the last few years, we've built out our product portfolio, and that's really what's driving the underlying strength in Drinkware." — Matthew Reintjes (CEO·CHAIR)
Tariffs and inflation details
Q (Peter Benedict · Baird): The analyst asked whether management has any line of sight on the possible 20% tariff starting in September and asked for detail on the inflationary pressures, their size, and mitigation plans.
A: They said the tariff situation changes regularly and they have no particular insight, so they are planning conservatively. They described inflation pressures worsening in Q2 in inputs like stainless steel, magnets, resins, FX, and fuel/transportation, noted those affect the P&L with delay, and said teams are working on mitigating responses while delivering a year-over-year gross margin improvement.
"We have no particular insight on whether that will or won't happen, but we're just being conservative in our outlook." — Scott Bomar (CFO)
International growth and capital plans
Q (Olivia May Witte · William Blair): The analyst asked how management sees a stable growth rate internationally, inventory and sell-through in key markets, early results from Japan, and whether tariff refunds change M&A or capital allocation priorities.
A: They said international varies by market: ANZ and Canada are mature and performing well, Europe is driving significant growth, and Japan's e-commerce and activations are performing extremely well though Asia is a multiyear build. They said tariff refunds do not change their view on M&A and they do not intend to change capital allocation priorities; cash will continue to be prioritized for growth, selective M&A, and returning capital if available.
"We still think that we have -- we're on track to deliver our growth expectations for the year for the international business as a portfolio." — Scott Bomar (CFO)
FOUR Letters campaign and Drinkware SKUs
Q (Peter Keith · Piper Sandler): The analyst asked about longer-term benefits from the FOUR Letters brand campaign and whether there will be another national campaign; they also asked for details on the cited 600 basis point Drinkware headwind and the three SKUs involved.
A: They said the FOUR Letters effort is a platform, not just a one-time campaign, and they are breaking it into smaller digital pieces to target audiences; no broad national campaign is planned for Q4 but they may act opportunistically. They said the 600 basis point headwind reflects a concentration and cycling out of a narrow set of trend-driven Drinkware SKUs, that mid-single-digit Drinkware growth was provided against that headwind, and that this was already included in the full-year guide.
"We look at this as a platform that we can use and continue to bring back to life because we think it has more than just a campaign moment." — Matthew Reintjes (CEO·CHAIR)
Pricing discipline and international outlook
Q (Joseph Altobello · Raymond James): The analyst asked what 'pricing discipline' meant in driving gross margin upside and whether that was list price increases or broader pricing and promotion changes; they also asked why management is confident international will accelerate to the guide.
A: They said pricing discipline means product and commercial leaders constantly evaluate product and channel profitability and that pricing is a key component, along with supply chain and operational optimizations and FX. They also said they see demand signals and healthy trajectory in international, and they are seeing momentum from investments in local teams and supply chain capabilities.
"we have product and commercial leaders that are constantly evaluating product and channel profitability, and they look at pricing as a key component of that." — Scott Bomar (CFO)
Drinkware quarter noise and higher OpEx
Q (Peter Grom · UBS): The analyst asked why Drinkware grew only 2% this quarter versus guidance and what would drive acceleration in the back half, and whether the OpEx increase is from transport costs or higher brand investment.
A: They said the quarter-to-quarter Drinkware result is likely noise tied to launch timing and wholesaler buying patterns and that nothing in Q2 changes the full-year outlook. They said the OpEx increase is largely higher operational costs from inflation with some additional investment in productivity and growth initiatives.
"we didn't see anything in Q2 that highlights or indicates additional pressure weighing on the category." — Scott Bomar (CFO)
Incentive comp and corporate sales size
Q (Noah Zatzkin · KeyBanc): The analyst asked to quantify incentive compensation tied to the tariff refunds and whether that impact is one-time, and asked how large corporate sales are and their trajectory.
A: They said they will not specifically break out incentive comp and that the incentive comp reference was not related to tariffs and is not consequential to full-year incentive comp. They said corporate sales had a tough Q1 then a nice recovery in Q2, are roughly 25% or 1/4 of the D2C business, and the team has a plan to continue improving that channel.
"It's roughly 25% or 1/4 of the D2C business." — Scott Bomar (CFO)
Sell-through vs sell-in balance
Q (Anna Glaessgen · B. Riley): The analyst asked whether the guidance assumes sell-through and sell-in become more balanced this year and when parity might happen.
A: They said the guidance does imply a balance between sell-in and sell-through and they are not expecting a big inventory build or continued decoupling in the second half. They said the team's goal is to match inventory levels to sell-through and that's how they thought about the guide.
"the guidance does imply a balance between sell-in or sell-through." — Scott Bomar (CFO)