YETI Stock Slides After Q3 Revenue Miss: Company Cuts 2026 Sales And EPS Outlook

• YETI reported Q3 net sales of $509.4 million, up 4% year-over-year, missing Fiscal.ai estimates of $522.99 million.
• The company cut its FY2026 adjusted sales growth outlook to around 6% from 7% to 8% and lowered its adjusted EPS guidance to $2.90 to $2.95 from $2.94 to $3.
• Drinkware sales grew 8% to $284 million, while international sales increased 19% to $119.1 million.

YETI Holdings (YETI) shares fell on Thursday after the outdoor-products maker reported third-quarter revenue below analyst expectations and cut its full-year outlook. The company also warned that cautious consumer spending and more selective buying could weigh on fourth-quarter demand.

The company reported net sales of $509.4 million, up 4% year-over-year, missing analyst estimates of $522.99 million, according to Fiscal.ai. Adjusted sales increased 6% to $517.9 million, excluding the current-period impact of adjustments to the company's 2023 product recall reserves.

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However, adjusted diluted earnings-per-share (EPS) increased 49% to $0.91, compared with analyst estimates of $0.84, according to Fiscal.ai. GAAP diluted EPS rose 25% to $0.60.

YETI shares traded 11% lower in premarket trading at the time of writing.

YETI Lowers 2026 Outlook 

YETI lowered its fiscal 2026 adjusted sales growth outlook to about 6%, down from its previous forecast of 7% to 8%.

The company also reduced its adjusted operating income growth forecast to 7% to 9% from 10% to 12%. Its adjusted EPS outlook was lowered to $2.90 to $2.95 from $2.94 to $3.00.

Meanwhile, YETI maintained its forecast for adjusted operating income as a percentage of adjusted sales at about 14.9%. Its free cash flow outlook also remained unchanged at $200 million to $225 million.

Commenting on the results, CEO Matt Reintjes said demand was uneven during the quarter, particularly in the U.S. and Canadian markets. He added that the broader diversity of the company's products, sales channels and geographic markets supported overall performance.

Drinkware, International Markets Support Sales Growth

Drinkware sales increased 8% to $284 million, supported by growth in the U.S. and international markets. Coolers & Equipment sales remained flat at $215.6 million, though adjusted sales in the category increased 4% to $224.1 million.

International sales grew 19% to $119.1 million, driven by strong performance in Europe and Australia, alongside continued expansion in Japan. U.S. sales increased 1% to $390.3 million.

Across sales channels, wholesale sales increased 19% to $237.3 million, while direct-to-consumer (DTC) sales declined 6% to $272.2 million. Adjusted DTC sales fell 3%, primarily due to declines in U.S. owned e-commerce and the U.S. Amazon Marketplace. These declines were partially offset by growth in key international markets and corporate sales.

Adjusted gross profit increased 12% to $305.5 million, while adjusted gross margin expanded 310 basis points to 59%. The margin improvement reflected lower net tariff costs, continued pricing discipline and lower inbound freight costs, partially offset by higher product costs driven by commodity inflation.

How Retail Views YETI

Retail sentiment around the stock remained in the ‘bullish,’ territory amid ‘high’ message volumes over the past 24 hours.

YETI shares dropped over 6.4% year-to-date.

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