YETI Holdings, Inc. (NYSE:YETI) stock fell Thursday after the company reported third-quarter results and cut its full-year forecast.
Management cited uneven demand in the U.S. and Canada. The company also warned that cautious consumer spending and bargain hunting could continue through the fourth quarter.
YETI reported adjusted earnings of 91 cents per share, up from 61 cents a year earlier.
Revenue rose 4.4% to $509.4 million from $487.8 million.
Adjusted sales rose 6% to $517.9 million, excluding adjustments related to the company’s 2023 product recalls.
Adjusted gross profit climbed 12% to $305.5 million. Adjusted gross margin expanded 310 basis points to 59%.
Lower net tariff costs contributed about 200 basis points to the margin improvement. Operational factors, including pricing and lower inbound freight costs, added another 110 basis points, partially offset by higher commodity costs.
Wholesale Growth Offsets Weaker Online Sales
Wholesale sales jumped 19% to $237.3 million, driven by demand in the U.S., Europe and Australia.
However, direct-to-consumer sales fell 6% to $272.2 million. Weak U.S. e-commerce sales and a shift in Amazon Prime Day timing weighed on results.
Drinkware sales grew 8% to $284 million, while Coolers & Equipment sales remained flat at $215.6 million.
International sales surged 19% to $119.1 million, led by Europe, Australia and Japan. U.S. sales edged up 1% to $390.3 million.
YETI also repurchased $20 million in shares during the quarter, bringing its 2026 buybacks to approximately $150 million.
YETI Cuts 2026 Forecast As Consumers Pull Back
YETI lowered its full-year adjusted earnings forecast to $2.90-$2.95 per share, down from $2.94-$3.00. Analysts expected $2.98 per share.
The company also cut its revenue forecast to $1.948 billion from $1.999 billion-$2.017 billion. Wall Street expected $2.011 billion.
YETI now expects adjusted sales growth of about 6%, down from its previous forecast of 7%–8%, reflecting softer consumer demand.
YETI now expects international sales growth in the mid-teens, down from its previous forecast of high-teens to 20% growth, primarily due to weaker demand in Canada.
However, the company maintained its adjusted gross margin forecast of 57.5%-58%.
YETI also reaffirmed its free cash flow forecast of $200 million-$225 million and capital spending of $60 million-$70 million.
YETI Price Action: YETI Holdings shares were down 8.58% at $39.12 at the time of publication on Thursday, according to Benzinga Pro data.
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