YETI Holdings Reports Q2 Fiscal 2025 Results with $51.2M Net Income

YETI Holdings, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a net income of $51.2 million, or $0.61 per diluted share, compared to $50.4 million, or $0.59 per diluted share, in the same period last year. Total net sales for the quarter reached $445.9 million, a decrease of 4% from $463.5 million in the prior year. The decline in revenue was attributed to cautious consumer behavior, inventory constraints due to supply chain transitions, and a more competitive drinkware market. For the first half of the fiscal year, net sales totaled $797.0 million, down 1% from $804.9 million in the same period of 2024.

The company's gross profit for the second quarter was $257.6 million, reflecting a gross margin of 57.8%, an increase from 57.0% in the previous year. This improvement was driven by lower product costs and selective price increases on certain drinkware products, which offset the negative impact of higher tariff costs. Selling, general, and administrative (SG&A) expenses decreased slightly to $195.5 million, representing 43.9% of net sales, up from 42.5% in the prior year. The increase in SG&A as a percentage of sales was primarily due to higher general and administrative expenses.

YETI's operational metrics showed a mixed performance across its sales channels. Direct-to-consumer (DTC) sales decreased by 1% to $248.6 million, while wholesale sales fell by 7% to $197.3 million. The company noted that while U.S. sales declined by 5% to $367.8 million, international sales increased by 2% to $78.1 million, driven by growth in Europe and the launch in Japan. The company continues to expand its product offerings, having launched several new items in its drinkware and cooler categories during the quarter.

Strategically, YETI has been active in acquisitions, having completed the purchase of Mystery Ranch, a designer of load-bearing backpacks, in February 2024 for $36.2 million. This acquisition is expected to enhance YETI's capabilities in the bags category. Additionally, the company has been diversifying its manufacturing base to mitigate the impact of tariffs, with plans to have a majority of its drinkware manufacturing outside of China by the end of 2025. Looking ahead, YETI anticipates that ongoing macroeconomic challenges, including inflation and supply chain disruptions, may continue to affect its performance, but it remains committed to managing these risks while maintaining a strong cash position.