Key Takeaways:
Yeti Holdings Inc. (NYSE: YETI) saw its stock jump after the outdoor gear company reported first-quarter revenue of $380.4 million, beating analyst expectations and raising its full-year outlook for 2026.
"Our first quarter results marked a great start to 2026, building upon and accelerating our momentum from the fourth quarter," Matt Reintjes, President and Chief Executive Officer of YETI, said in a statement. "YETI saw exceptionally strong US consumer sell-through demand across both Drinkware and Coolers & Equipment."
The 8 percent year-over-year revenue increase surpassed the consensus estimate of $374.6 million. Adjusted earnings per share came in at $0.26, beating the $0.19 expected by analysts, according to data from Seeking Alpha. For the full year, YETI now expects sales growth between 7 percent and 8 percent, up from a previous range of 6 to 8 percent. The company also boosted its adjusted EPS forecast to a range of $2.83 to $2.89.
Shares of the Austin-based company surged as much as 8 percent in trading following the announcement. The results were driven by a 19 percent surge in the wholesale channel, which offset flat performance in its direct-to-consumer business.
The company's Coolers & Equipment category posted an 11 percent sales increase to $156.1 million, while the Drinkware segment grew 5 percent to $216.9 million. The strong performance in the wholesale channel was attributed to robust consumer demand and inventory replenishment by retail partners.
However, the shift toward the wholesale channel, which carries lower margins than direct sales, contributed to a 210 basis point decrease in gross margin to 55.3 percent. The company also noted that a decline in global corporate sales, a component of the DTC channel, acted as a drag on overall growth.
Alongside its updated guidance, YETI announced its board approved an increase to its share repurchase program, bringing the total authorization to $500 million. The company maintained its forecast for capital expenditures between $60 million and $70 million for the year.
The raised guidance suggests management is confident that strong consumer demand will continue, particularly as it heads into the warmer months. Investors will be watching the balance between the higher-volume wholesale channel and the more profitable direct-to-consumer channel in the upcoming quarters. The company's next earnings report will provide further insight into whether the momentum can be sustained.
This article is for informational purposes only and does not constitute investment advice.
