Q2 2026 YETI Holdings, Inc. Earnings Call Transcript
Key Points
- YETI Holdings Inc (YETI) delivered broad-based growth with sales up 9% year-over-year, driven by strength across categories, channels, and geographies.
- Gross margin expanded 170 basis points to 59.5%, reflecting strong operational execution and pricing discipline.
- The company raised its full-year adjusted operating margin and EPS guidance, now expecting EPS growth of 19% to 21%.
- International sales grew 19%, with strong performance in Europe, Australia, and Japan, and the company is on track to expand to 11 markets by end of 2026.
- YETI Holdings Inc (YETI) returned $130 million to shareholders through share repurchases in Q2, bringing total repurchases to over $600 million since 2024.
- YETI Holdings Inc (YETI) faces significant inflationary pressures from raw material costs, transportation, and distribution, which are expected to persist.
- The company assumes tariffs will return to approximately 20% starting in September, adding uncertainty to the outlook.
- US Drinkware sales were flat, with a 600 basis point drag from three trend-driven SKUs, though this headwind is expected to ease by year-end.
- Canada wholesale sales were softer than expected due to cautious inventory purchases by retail partners.
- Adjusted SG&A expenses increased 19% and deleveraged 410 basis points, driven by brand campaign timing and higher incentive compensation accruals.
Good morning, ladies and gentlemen, and welcome to the YETI Holdings second quarter fiscal 2026 results conference call. (Operator Instructions) This call is being recorded on Thursday, August 13, 2026.
I would now like to turn the conference over to Arvind Bhatia, Head of Investor Relations. Please go ahead.
Good morning and thank you for joining us to discuss YETI Holdings' second quarter fiscal 2026 results. Leading the call today will be Matt Reintjes, Chairman and CEO; and Scott Bomar, 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 and that could cause our actual results to differ materially from these statements. For more information, please refer to the risk factors detailed in our most recently filed Form 10-K.
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