YETI Holdings Reports 8% Sales Growth and Decline in Net Income for Q1 Fiscal 2026

YETI Holdings, Inc. reported its financial results for the first quarter of fiscal 2026, ending April 4, 2026, revealing a net sales increase of 8% to $380.4 million, compared to $351.1 million in the same period last year. The growth was driven by a 19% rise in wholesale channel sales, which reached $183.6 million, while direct-to-consumer (DTC) sales saw a slight increase to $196.8 million. The company’s gross profit also rose, totaling $210.2 million, although the gross margin decreased to 55.3% from 57.4% due to higher tariff costs and increased inbound freight expenses.

In terms of profitability, YETI's net income for the quarter was $9.9 million, down from $16.6 million in the prior year, reflecting a decrease in operating income to $12.4 million from $21.7 million. The decline in net income was attributed to increased selling, general, and administrative (SG&A) expenses, which rose by 10% to $197.8 million, primarily due to higher general and administrative costs and increased marketing expenses. The effective tax rate for the quarter was 19.9%, a decrease from 28.9% in the previous year, largely due to a discrete tax benefit related to stock-based compensation.

YETI has continued to expand its product offerings, launching new items in its Drinkware and Coolers & Equipment categories during the quarter. Notable introductions included the Rambler Travel Bottle and the redesigned Straw Mug 2.0. The company also reported strong performance in its international markets, with net sales outside the U.S. increasing by 9% to $87.3 million, driven by growth in Europe, Australia, and Canada.

Operationally, YETI's cash position decreased to $127.8 million from $188.3 million at the beginning of the quarter, with cash used in operating activities amounting to $32.6 million. The company’s inventory levels increased to $318.4 million, reflecting ongoing supply chain challenges. YETI's employee headcount has also grown as the company invests in its international expansion and product development initiatives.

Looking ahead, YETI remains cautious about macroeconomic conditions, including inflation and geopolitical uncertainties, which could impact consumer spending and operational costs. The company is committed to maintaining its growth trajectory while navigating these challenges, and it continues to evaluate its strategic initiatives, including potential share repurchases under its existing program, which has approximately $500 million remaining for future buybacks.