YETI Holdings, Inc. Q4 FY2025 earnings call

Three themes emphasized: strong finish to 2025 sets stage for growth, strong product innovation engine, expanding global brand. Drinkware had 6% global growth in Q4 with innovation and expansion. Coolers & Equipment demand healthy with new product launches. Brand building efforts with global activations, partnerships, and marketing campaigns. Omnichannel strategy as competitive advantage. International growth with expansion in various markets. Supply chain transformation success.

In Q4 2025, YETI had 5% net sales growth. Drinkware grew 6% with global growth in Q4, bolstered by innovation and expansion. Coolers & Equipment sales grew 2% despite DayTrip and Camino supply constraints. International sales grew 25% to $136,000,000, representing 23% of Q4 sales. Drinkware had sales of $380,000,000 (+6%), Coolers & Equipment had $192,000,000 (+2%), DTC sales were $394,000,000 (+5%), wholesale sales were $189,000,000 (+6%).

Expect 6% to 8% net sales growth in 2026. Coolers & Equipment expected high single digit to low double digit growth, Drinkware mid single digit. Gross margins 56% - 57%, down 90 basis points year over year. OpEx growth 3% - 7%. Adjusted earnings per diluted share $2.77 - $2.83. Free cash flow $200,000,000 - $225,000,000. Share repurchases $100,000,000 planned for 2026.

Tariffs remain a margin headwind. Uncertainty around potential tariff relief. Impact of consumer promotional environment on sales and conversion rates. Competitive environment and changes in market dynamics.

Q: On pricing and tariffs, A: Pricing similar to last year, tariff relief not contemplated in guide.

Q: On international and Drinkware guidance, A: International high teens to 20% growth, Drinkware mid single digit.

Q: On US market improvement and OpEx leverage, A: US market Drinkware stabilization, OpEx leverage from investments.

Q: On catalysts for growth, A: Innovation, international expansion, brand building.

Q: On advertising and DTC conversion, A: Advertising around live events, DTC conversion affected by cross-channel shopping.

Q: On tariffs and international markets, A: Tariffs majority AIPA, international markets no structural barriers.

Q: On bags and inventory, A: Bags part of growth, inventory alignment expected.

Q: On tariffs and competitive environment, A: Tariffs majority AIPA, shelf space opportunities with innovation.