Q3 2025 Yeti Holdings Inc Earnings Call Transcript
Key Points
- YETI Holdings Inc (YETI) reported a 2% sales growth in the third quarter, reaching $487.8 million, driven by double-digit growth in both the Coolers & Equipment category and international business.
- The company is experiencing strong international growth, particularly in Europe, Australia, New Zealand, and Canada, with early contributions from Japan.
- YETI's product innovation pipeline is robust, with plans to launch more than 30 new products in 2025, including the YETI Shaker bottle targeting a $2.5 billion market.
- The company is expanding its global presence with new partnerships and distribution channels, including a new wholesale partnership with Nordstrom.
- YETI is leveraging artificial intelligence to enhance consumer engagement and drive efficiency, including AI-enabled product customization and a conversational shopping assistant on yeti.com.
- YETI's Drinkware sales declined by 4% to $263.8 million, with the US market remaining challenged due to promotional activity and cautious wholesale ordering.
- The company faced a 230 basis point year-over-year decline in gross profit margin, primarily due to higher tariff costs and a lower mix of Drinkware sales.
- US e-commerce performance was softer, with conversion rates remaining pressured, impacting overall performance despite growth in traffic and average order value.
- The company is experiencing significant caution in wholesale selling, particularly in the US, leading to a notable gap compared to strong sell-through in Drinkware and Coolers.
- YETI's adjusted operating income decreased by 16% to $66.6 million, and adjusted net income decreased by 18% to $49.6 million, reflecting the impact of higher tariff costs.
Good morning, ladies and gentlemen, and welcome to the YETI Holdings third quarter 2025 earnings conference call. (Operator Instructions) Following the presentation, we will conduct a question-and-answer session. This call is being recorded on Thursday, November 6, 2025.
I would like I would now like to turn the conference over to Arvind Bhatia, Head of Investor Relations at YETI. Please go ahead.
Good morning, and thank you for joining us to discuss YETI Holdings' third quarter fiscal 2025 results. Leading the call today will be Matt Reintjes, President and CEO and Mike McMullen, CFO. Following our prepared remarks, we will open the call for your questions.
Before we begin, we would like to remind you that some of the statements that we make today on this call may be considered forward-looking, and such forward-looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. For more
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