YETI’s second quarter results did not meet Wall Street’s sales expectations, with revenue declining year over year and the market responding negatively. Management attributed the shortfall to ongoing consumer caution and softer demand from retail partners, especially in the U.S. Drinkware segment. CEO Matt Reintjes emphasized that macroeconomic uncertainty and a highly promotional market environment weighed on top-line performance, while noting, “We are making excellent progress on our long-term strategic priorities, driving innovation, expanding our global presence, and broadening our customer base.”
Is now the time to buy YETI? Find out in our full research report (it’s free).
YETI (YETI) Q2 CY2025 Highlights:
- Revenue: $445.9 million vs analyst estimates of $462.8 million (3.8% year-on-year decline, 3.7% miss)
- Adjusted EPS: $0.66 vs analyst estimates of $0.55 (20.4% beat)
- Adjusted EBITDA: $86.34 million vs analyst estimates of $73.59 million (19.4% margin, 17.3% beat)
- Management raised its full-year Adjusted EPS guidance to $2.41 at the midpoint, a 21.1% increase
- Operating Margin: 13.9%, in line with the same quarter last year
- Locations: 25 at quarter end, up from 20.7 in the same quarter last year
- Market Capitalization: $2.87 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From YETI’s Q2 Earnings Call
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Phillip Blee (William Blair) asked about the balance of price versus volume in the second half, and CFO Michael McMullen clarified that growth will be volume-driven, with recent price increases having minimal impact.
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Brooke Roach (Goldman Sachs) questioned the scalability of recent product innovations and the timeline for U.S. Drinkware to return to growth. CEO Matt Reintjes said innovation is driving diversification, and McMullen expects supply chain relief to support growth in 2026.
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Randal J. Konik (Jefferies) inquired about inventory trends and the outlook for gross margins. McMullen explained that sell-through is outpacing sell-in, especially outside the U.S., and highlighted ongoing supply chain cost efficiencies.
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Peter Benedict (Baird) sought clarity on recapturing margin lost to tariffs and the rationale for the current share buyback level. McMullen said management is focused on cost offsets and maintaining balance sheet strength while weighing capital deployment priorities.
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Alexia Morgan (Piper Sandler) probed the drivers behind the promotional Drinkware environment and recent product popularity among women. Reintjes attributed promotions to market cleanup and highlighted broad-based demand across consumer segments.
Catalysts in Upcoming Quarters
In future quarters, our analysts will be watching (1) whether innovation in Drinkware and bags translates into sustained sales growth, (2) the pace and impact of international expansion, especially in Europe and Japan, and (3) execution of supply chain transformation and resilience against evolving tariff policies. Progress in optimizing inventory and broadening the product portfolio will also be key indicators.
YETI currently trades at $35.36, down from $36.44 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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