YETI HOLDINGS INC (NYSE:YETI) Reports Mixed Q2 2025 Earnings with EPS Beat but Revenue Miss

YETI HOLDINGS INC (NYSE:YETI) reported its second-quarter 2025 earnings, delivering a mixed performance relative to analyst expectations. The company posted adjusted earnings per share (EPS) of $0.66, surpassing the consensus estimate of $0.56 by nearly 18%. However, revenue fell short, coming in at $445.9 million compared to the expected $470.9 million, reflecting a 4% year-over-year decline.

Key Financial Highlights

• Revenue Miss: Sales dropped 4% YoY to $445.9M, missing estimates by ~$25M.
  • Drinkware sales declined 4% to $236.4M, impacted by U.S. market softness and supply chain constraints.
  • Coolers & Equipment sales dipped 3% to $200.6M, though hard coolers and bags showed strength.
  • International sales rose 2%, led by Europe and new market entries like Japan.
• Profitability: Adjusted gross margin improved slightly to 57.8%, supported by cost efficiencies and selective price hikes, though higher tariffs offset some gains.
• Share Buybacks: The company repurchased 745,000 shares for $23M as part of its $450M authorization.

Market Reaction

Despite the EPS beat, YETI shares dipped ~3.9% in pre-market trading, likely reflecting investor concerns over the revenue miss and ongoing challenges in the U.S. drinkware segment. The stock has been volatile in recent weeks, with a 0.1% gain over the past month but an 8.2% drop in the last two weeks.

Updated 2025 Outlook

YETI revised its full-year guidance, now expecting:

• Adjusted sales: Flat to +2% growth (down from prior guidance of +1% to +4%), citing supply chain disruptions.
• Adjusted EPS: Raised to $2.34–$2.48 (vs. prior $1.96–$2.02), benefiting from tariff reductions and operational execution.
• Free cash flow: Projected at $150M–$200M, up significantly from earlier estimates.

Strategic Focus

CEO Matt Reintjes emphasized progress in supply chain diversification, international expansion, and product innovation, particularly in bags and hard coolers. The company remains optimistic about long-term growth despite near-term macroeconomic headwinds.

For detailed earnings estimates and historical performance, visit YETI’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making decisions.