YETI(YETI) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights YETI achieved significant progress in strategic priorities like innovation and global expansion, demonstrating resilience despite macroeconomic challenges and laying groundwork for future growth Second Quarter 2025 Highlights YETI CEO Matt Reintjes highlighted significant progress in long-term strategic priorities, including accelerated innovation, global brand expansion, and supply chain diversification, while leveraging a strong balance sheet and free cash flow to drive sustainable growth - The company made significant progress on long-term strategic priorities, including accelerated innovation, global brand expansion, and supply chain diversification[3] - Product innovation and portfolio diversification, especially in bags, showed strong momentum; global expansion performed well in the UK and Europe, with robust end-user demand in Canada and Australia, and the Japan market launched[3] - The company maintains a strong balance sheet and robust free cash flow, supporting growth investments and capital allocation priorities, including share repurchases[3] - Key growth drivers showed encouraging momentum at the end of Q2, with continued improvement expected in Q3[3] Second Quarter 2025 Financial Results YETI's Q2 2025 financial results show a decline in sales due to market challenges, while profitability saw mixed performance with improved gross margin but increased SG&A expenses Sales Performance YETI's Q2 2025 sales and adjusted sales both decreased 4% year-over-year to $445.9 million, primarily impacted by a promotional drinkware market, cautious consumer and retail partner sentiment, and supply chain transition-related inventory constraints Overall Sales Net sales decreased 4% year-over-year to $445.9 million, primarily due to increased competition in the drinkware market, cautious consumer and retail partner sentiment, and supply chain transition-related inventory constraints Q2 2025 Net Sales Performance (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | | :-------- | :--------------------- | :--------------------- | :--------- | | Net Sales | $445.9 | $463.5 | -4% | - The sales decline reflects a promotional drinkware market, cautious consumer and retail partner sentiment, and inventory constraints due to supply chain transition[6] Geographic Sales U.S. sales decreased 5% to $367.8 million, while international sales grew 2% to $78.1 million, driven by strong growth in Europe and the launch of the Japan market, partially offset by conservative inventory purchases from wholesale partners in other international regions Q2 2025 Geographic Sales Performance (Millions USD) | Region | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | | :------------------ | :--------------------- | :--------------------- | :--------- | | U.S. Sales | $367.8 | $386.9 | -5% | | International Sales | $78.1 | $76.6 | +2% | - International sales growth reflects strong performance in Europe and the launch of the Japan market[5] - International sales growth was partially offset by conservative inventory purchases and cautious sentiment from wholesale partners in other international regions[5] Channel Sales Direct-to-consumer (DTC) channel sales slightly decreased 1% to $248.6 million, while wholesale channel sales declined 7% to $197.3 million, primarily due to decreases in both drinkware and coolers & equipment sales Q2 2025 Channel Sales Performance (Millions USD) | Channel | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | | :-------- | :--------------------- | :--------------------- | :--------- | | DTC | $248.6 | $250.4 | -1% | | Wholesale | $197.3 | $213.1 | -7% | - The decline in wholesale channel sales was due to decreased sales in both drinkware and coolers & equipment[7] Product Category Sales Drinkware sales decreased 4% to $236.4 million, with international growth offset by a decline in the U.S. market due to challenges and supply chain transition-related inventory constraints, while Coolers & Equipment sales decreased 3% to $200.6 million, with hard coolers growth offset by soft coolers decline Q2 2025 Product Category Sales Performance (Millions USD) | Category | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | | :------------------ | :--------------------- | :--------------------- | :--------- | | Drinkware | $236.4 | $246.5 | -4% | | Coolers & Equipment | $200.6 | $205.9 | -3% | - The decline in drinkware sales was due to challenges in the U.S. market and inventory constraints from supply chain transition[7] - The decrease in Coolers & Equipment sales was due to a decline in soft coolers offsetting growth in hard coolers[7] Profitability YETI's Q2 2025 profitability showed mixed results, with a slight decrease in gross profit but improved gross margin due to lower product costs and selective price increases, while SG&A expenses decreased in absolute terms but rose as a percentage of sales, impacting operating income and adjusted EPS Gross Profit & Margin Gross profit decreased 3% to $257.6 million, but GAAP gross margin improved by 80 basis points to 57.8%, and adjusted gross margin increased by 10 basis points to 57.8%, primarily due to lower product costs and selective price increases implemented in Q2 2025, partially offset by higher tariff costs Q2 2025 Gross Profit and Margin (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | Q2 2025 Margin | Q2 2024 Margin | Change (bps) | | :-------------------- | :--------------------- | :--------------------- | :--------- | :------------- | :------------- | :----------- | | Gross Profit | $257.6 | $264.3 | -3% | 57.8% | 57.0% | +80 | | Adjusted Gross Profit | $257.6 | $267.5 | -4% | 57.8% | 57.7% | +10 | - The increase in gross margin was primarily attributable to lower product costs and selective price increases, partially offset by higher tariff costs[8][9] SG&A Expenses GAAP Selling, General, and Administrative (SG&A) expenses decreased 1% to $195.5 million, and adjusted SG&A expenses decreased 2% to $184.4 million; however, as a percentage of sales, GAAP SG&A expenses increased 140 basis points to 43.9%, and adjusted SG&A expenses increased 80 basis points to 41.3%, primarily due to increased technology expenses related to growth investments Q2 2025 SG&A Expenses (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | Q2 2025 % Sales | Q2 2024 % Sales | Change (bps) | | :--------------------- | :--------------------- | :--------------------- | :--------- | :-------------- | :-------------- | :----------- | | SG&A Expenses | $195.5 | $196.9 | -1% | 43.9% | 42.5% | +140 | | Adjusted SG&A Expenses | $184.4 | $187.5 | -2% | 41.3% | 40.5% | +80 | - The increase in SG&A expenses as a percentage of sales was primarily due to higher technology expenses related to growth investments[10][11] Operating Income GAAP operating income decreased 8% to $62.0 million, and adjusted operating income decreased 9% to $73.2 million, with GAAP operating margin falling to 13.9% and adjusted operating margin to 16.4% Q2 2025 Operating Income (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | Q2 2025 Margin | Q2 2024 Margin | | :------------------------ | :--------------------- | :--------------------- | :--------- | :------------- | :------------- | | Operating Income | $62.0 | $67.4 | -8% | 13.9% | 14.5% | | Adjusted Operating Income | $73.2 | $80.0 | -9% | 16.4% | 17.3% | Net Income & EPS Net income increased 1% to $51.2 million, with diluted EPS growing 3% to $0.61; however, adjusted net income decreased 7% to $55.2 million, and adjusted diluted EPS declined 6% to $0.66, including a $0.07 net impact from higher tariff costs, while other income significantly increased due to foreign exchange gains Q2 2025 Net Income and EPS (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | Q2 2025 EPS | Q2 2024 EPS | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------- | :---------- | :---------- | :--------- | | Net Income | $51.2 | $50.4 | +1% | $0.61 | $0.59 | +3% | | Adjusted Net Income | $55.2 | $59.6 | -7% | $0.66 | $0.70 | -6% | | Other Income (Expense), net | $5.8 | $0.4 | +1350% | | | | - Adjusted EPS includes a $0.07 net impact from higher tariff costs[6] - The increase in other income was primarily due to higher foreign exchange gains related to intercompany balances[13] Six Months Ended June 28, 2025 Financial Results YETI's year-to-date financial results for 2025 show a slight sales decline, with international growth offsetting U.S. weakness, while profitability was impacted by increased SG&A expenses despite improved gross margin Sales Performance For the first six months of 2025, YETI's sales and adjusted sales both decreased 1% year-over-year to $797.0 million, with U.S. sales declining while international sales grew significantly despite foreign exchange headwinds, and DTC channel sales increased driven by Coolers & Equipment, offsetting a decline in wholesale sales due to drinkware Overall Sales Sales and adjusted sales for the six months ended June 28, 2025, both decreased 1% year-over-year to $797.0 million YTD 2025 Net Sales Performance (Millions USD) | Metric | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (%) | | :-------- | :---------------------- | :---------------------- | :--------- | | Net Sales | $797.0 | $804.9 | -1% | Geographic Sales U.S. sales decreased 4% to $639.0 million, while international sales grew 11% to $158.0 million, reflecting strong growth in Europe and Canada and the launch of the Japan market, despite approximately 260 basis points of foreign exchange headwinds YTD 2025 Geographic Sales Performance (Millions USD) | Region | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (%) | | :------------------ | :---------------------- | :---------------------- | :--------- | | U.S. Sales | $639.0 | $662.7 | -4% | | International Sales | $158.0 | $142.2 | +11% | - International sales growth reflects strong performance in Europe and Canada and the launch of the Japan market, but includes approximately 260 basis points of foreign exchange headwinds[16] Channel Sales Direct-to-consumer (DTC) channel sales grew 2% to $444.8 million, primarily driven by growth in Coolers & Equipment, while wholesale channel sales decreased 4% to $352.2 million, mainly due to a decline in drinkware sales, partially offset by growth in Coolers & Equipment YTD 2025 Channel Sales Performance (Millions USD) | Channel | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (%) | | :-------- | :---------------------- | :---------------------- | :--------- | | DTC | $444.8 | $438.2 | +2% | | Wholesale | $352.2 | $366.7 | -4% | - DTC channel sales growth was primarily due to an increase in Coolers & Equipment sales[18] - The decline in wholesale channel sales was primarily due to decreased drinkware sales, partially offset by growth in Coolers & Equipment[18] Product Category Sales Drinkware sales decreased 4% to $442.0 million, with international growth offset by a decline in the U.S. market due to challenges and supply chain transition-related inventory constraints, while Coolers & Equipment sales grew 5% to $340.8 million, driven by strong performance in bags and hard coolers, partially offset by a decline in soft coolers YTD 2025 Product Category Sales Performance (Millions USD) | Category | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (%) | | :------------------ | :---------------------- | :---------------------- | :--------- | | Drinkware | $442.0 | $461.1 | -4% | | Coolers & Equipment | $340.8 | $325.8 | +5% | - Coolers & Equipment sales growth was primarily driven by strong performance in bags and hard coolers[18] Profitability For the first six months of 2025, YETI's gross profit slightly increased, and gross margin improved due to lower product costs and price increases, despite higher tariffs and a decline in the drinkware product mix, while SG&A expenses rose both in absolute terms and as a percentage of sales, impacting operating income and adjusted EPS, which also faced foreign exchange headwinds Gross Profit & Margin Gross profit slightly increased to $459.3 million, with GAAP gross margin improving by 60 basis points to 57.6%; adjusted gross profit decreased 1% to $458.9 million, and adjusted gross margin remained flat at 57.6%, as lower product costs and selective price increases were offset by higher tariff costs and a decline in the drinkware product mix YTD 2025 Gross Profit and Margin (Millions USD) | Metric | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (%) | YTD 2025 Margin | YTD 2024 Margin | Change (bps) | | :-------------------- | :---------------------- | :---------------------- | :--------- | :-------------- | :-------------- | :----------- | | Gross Profit | $459.3 | $459.1 | +0% | 57.6% | 57.0% | +60 | | Adjusted Gross Profit | $458.9 | $463.9 | -1% | 57.6% | 57.6% | 0 | - The increase in gross margin was primarily attributable to lower product costs, no acquisition accounting inventory step-up amortization this year, and selective price increases implemented in Q2 2025, partially offset by higher tariff costs and a decline in the drinkware product mix[17][19] SG&A Expenses GAAP Selling, General, and Administrative (SG&A) expenses increased 3% to $375.6 million, and adjusted SG&A expenses grew 2% to $350.5 million; as a percentage of sales, GAAP SG&A expenses increased 160 basis points to 47.1%, and adjusted SG&A expenses increased 120 basis points to 44.0%, primarily due to higher technology expenses related to growth investments and increased non-cash stock-based compensation expenses YTD 2025 SG&A Expenses (Millions USD) | Metric | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (%) | YTD 2025 % Sales | YTD 2024 % Sales | Change (bps) | | :--------------------- | :---------------------- | :---------------------- | :--------- | :--------------- | :--------------- | :----------- | | SG&A Expenses | $375.6 | $365.9 | +3% | 47.1% | 45.5% | +160 | | Adjusted SG&A Expenses | $350.5 | $344.3 | +2% | 44.0% | 42.8% | +120 | - The increase in SG&A expenses as a percentage of sales was primarily due to higher technology expenses related to growth investments and increased employee costs associated with non-cash stock-based compensation[20][21] Operating Income GAAP operating income decreased 10% to $83.7 million, and adjusted operating income decreased 9% to $108.4 million, with GAAP operating margin falling to 10.5% and adjusted operating margin to 13.6%, while the decline in adjusted operating income included approximately 210 basis points of foreign exchange headwinds YTD 2025 Operating Income (Millions USD) | Metric | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (%) | YTD 2025 Margin | YTD 2024 Margin | | :------------------------ | :---------------------- | :---------------------- | :--------- | :-------------- | :-------------- | | Operating Income | $83.7 | $93.2 | -10% | 10.5% | 11.6% | | Adjusted Operating Income | $108.4 | $119.6 | -9% | 13.6% | 14.9% | - The decline in adjusted operating income included approximately 210 basis points of foreign exchange headwinds[22] Net Income & EPS Net income increased 2% to $67.8 million, with diluted EPS growing 5% to $0.81; however, adjusted net income decreased 9% to $81.0 million, and adjusted diluted EPS declined 6% to $0.97, including approximately $0.02 or 220 basis points of foreign exchange headwinds, while other income significantly improved due to foreign exchange gains YTD 2025 Net Income and EPS (Millions USD) | Metric | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (%) | YTD 2025 EPS | YTD 2024 EPS | Change (%) | | :-------------------------- | :---------------------- | :---------------------- | :--------- | :----------- | :----------- | :--------- | | Net Income | $67.8 | $66.3 | +2% | $0.81 | $0.77 | +5% | | Adjusted Net Income | $81.0 | $88.9 | -9% | $0.97 | $1.03 | -6% | | Other Income (Expense), net | $7.1 | $(3.7) | N/A | | | | - Adjusted diluted EPS included approximately $0.02 or 220 basis points of foreign exchange headwinds[24] - Other income significantly improved, primarily due to foreign exchange gains related to intercompany balances this year, compared to foreign exchange losses in the prior year period[23] Financial Position & Capital Allocation YETI maintains a strong financial position with substantial cash and an undrawn credit facility, actively engaging in capital allocation through share repurchases and strategic acquisitions Balance Sheet and Liquidity As of June 28, 2025, YETI held $269.7 million in cash, total debt (excluding finance leases and unamortized deferred financing costs) of $75.9 million, and an undrawn $300 million revolving credit facility, with inventory decreasing 10% year-over-year to $342.1 million Balance Sheet and Liquidity (Millions USD) | Metric | June 28, 2025 (Millions USD) | June 29, 2024 (Millions USD) | Change (%) | | :--------- | :--------------------------- | :--------------------------- | :--------- | | Cash | $269.7 | $212.9 | +26.7% | | Total Debt | $75.9 | $75.8 | +0.1% | | Inventory | $342.1 | $378.3 | -10% | - The company's $300 million revolving credit facility remained undrawn at the end of Q2 2025[25] Capital Allocation Update In Q2 2025, YETI repurchased approximately 0.7 million shares of common stock for $23.0 million under its existing $450 million share repurchase authorization, with full-year 2025 share repurchases expected to be approximately $200 million, and in August 2025, the company acquired certain shaker-related assets for $38.0 million in cash Capital Allocation Summary (Millions USD) | Metric | Q2 2025 (Millions USD) | Full Year 2025 Target (Millions USD) | | :----------------------------------- | :--------------------- | :----------------------------------- | | Share Repurchases (Q2) | $23.0 | N/A | | Shares Repurchased (Q2) | 0.7 million | N/A | | Share Repurchases (Full Year Target) | N/A | $200 | - In August 2025, the company acquired certain shaker-related assets, including designs, tooling, and intellectual property, for $38.0 million in cash[27] Fiscal Year 2025 Outlook YETI maintains confidence in its business and full-year outlook, adjusting revenue expectations while raising EPS guidance due to strong operational execution and tariff reductions Management Commentary CEO Matt Reintjes expressed confidence in the business and full-year outlook, satisfied with supply chain transition execution for diversification and future expansion, while revenue expectations were moderately lowered due to an extended U.S. drinkware market recovery, but EPS outlook was raised due to strong operational execution and reduced tariffs on China-sourced products, partially offset by increased tariffs in other regions - The company remains confident in its business and underlying operational fundamentals supporting the full-year outlook, and is pleased with the execution of its ongoing supply chain transition[28] - Revenue expectations were moderately lowered to reflect a slightly extended recovery timeline for the U.S. drinkware market[28] - The EPS outlook was raised, primarily due to strong operational execution and reduced tariffs on China-sourced products, partially offset by increased tariffs in other regions[28] - The company looks forward to innovation, continued brand strength, and global opportunities in the second half of 2025[28] Key Financial Projections For fiscal year 2025 (53 weeks), YETI projects adjusted sales to be flat to up 2%, adjusted operating income as a percentage of adjusted sales between 14.0% and 14.5%, an effective tax rate of approximately 25.5%, and adjusted diluted EPS between $2.34 and $2.48, with capital expenditures expected around $50 million and free cash flow between $150 million and $200 million Fiscal Year 2025 Key Financial Projections | Metric | FY2025 Outlook (New) | FY2025 Outlook (Previous) | Change | | :-------------------------------------- | :------------------- | :------------------------ | :------ | | Adjusted Sales Growth | Flat to +2% | +1% to +4% | Lowered | | Adjusted Operating Income % of Sales | 14.0% - 14.5% | 12.0% | Raised | | Effective Tax Rate | ~25.5% | ~26.0% | Lowered | | Adjusted Net Income per Diluted Share | $2.34 - $2.48 | $1.96 - $2.02 | Raised | | Diluted Weighted Average Shares Outstanding | ~82.0 million | ~83.7 million | Lowered | | Capital Expenditures | ~$50 million | ~$60 million | Lowered | | Free Cash Flow | $150 - $200 million | $100 - $125 million | Raised | - The adjusted sales outlook includes an approximate 300 basis point headwind from supply chain disruptions[31] - The adjusted operating income as a percentage of adjusted sales outlook reflects a net impact of approximately 220 basis points from higher tariff costs compared to the prior year[31] - The adjusted diluted EPS outlook includes an approximate $0.40 net headwind from higher tariff costs[31] Company Information YETI Holdings, Inc. is a global designer and distributor of innovative outdoor products, committed to high-performance offerings and community engagement, with details on its recent earnings call About YETI Holdings, Inc. Headquartered in Austin, Texas, YETI Holdings, Inc. is a global designer, retailer, and distributor of innovative outdoor products, including coolers, drinkware, bags, and apparel, dedicated to providing high-performance, exceptional products for diverse outdoor activities and building strong brand loyalty worldwide while remaining committed to the outdoor and recreational communities - YETI is a global designer, retailer, and distributor of innovative outdoor products, headquartered in Austin, Texas[30] - Products include coolers, drinkware, bags, and apparel, designed to meet the needs of diverse outdoor activities[30] - The company has built strong brand loyalty globally by consistently offering high-performance, exceptional products, and remains committed to the outdoor and recreational communities[30] Conference Call Details The company held a conference call to discuss Q2 2025 financial results on August 7, 2025, at 8:00 AM ET, with investors and analysts able to participate via designated phone numbers or a webcast on the company's website, and a replay available until August 21, 2025 - The Q2 2025 financial results conference call was held on August 7, 2025, at 8:00 AM ET[29] - A live audio webcast of the conference call is available at http://investors.yeti.com, with a replay accessible until August 21, 2025[29] Non-GAAP Financial Measures YETI utilizes non-GAAP financial measures to supplement GAAP results for performance evaluation, acknowledging their analytical limitations and the impracticality of forward-looking GAAP reconciliations Explanation and Limitations YETI uses non-GAAP financial measures, such as adjusted net sales, adjusted gross profit, and adjusted EPS, to supplement GAAP results for measuring profitability and evaluating financial performance, acknowledging that these metrics provide meaningful supplemental information but have limitations as analytical tools and should not be viewed in isolation or as substitutes for GAAP financial information, and the company does not provide forward-looking reconciliations due to inherent difficulties in forecasting certain necessary amounts - The company uses adjusted net sales, adjusted gross profit, adjusted SG&A expenses, adjusted operating income, adjusted net income, adjusted diluted EPS, and free cash flow as non-GAAP financial measures to supplement GAAP results for measuring profitability and evaluating financial performance[32][33] - These non-GAAP financial measures have limitations as analytical tools and should not be viewed in isolation or as substitutes for GAAP financial information[33] - The company does not provide forward-looking reconciliations of non-GAAP to GAAP financial measures due to inherent difficulties in forecasting certain necessary amounts, such as product recalls and realized and unrealized foreign currency gains and losses[34] Forward-looking statements This press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations, including economic conditions, consumer confidence, brand maintenance, new product development, growth management, market expansion, competition, supply chain issues, tariffs, demand forecasts, retail partnerships, natural disasters, IT failures, AI integration, personnel retention, debt impact, and share repurchase program effects, with YETI undertaking no obligation to update these statements unless required by law - This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations[36] - Risks and uncertainties include economic conditions, consumer confidence, brand maintenance, new product development, supply chain issues, tariff impacts, and competition[36] - YETI undertakes no obligation to publicly update or revise any forward-looking statements unless required by law[38] Condensed Consolidated Financial Statements This section presents YETI's condensed consolidated GAAP financial statements, including statements of operations, balance sheets, and cash flows, for the reported periods Statements of Operations The condensed consolidated statements of operations provide GAAP financial results for the three and six months ended June 28, 2025, and June 29, 2024, detailing net sales, cost of goods sold, gross profit, selling, general, and administrative expenses, operating income, net interest income (expense), other income (expense), income before income taxes, income tax expense, net income, and diluted EPS Condensed Consolidated Statements of Operations (GAAP, Thousands USD) | Metric (GAAP) | Q2 2025 (Thousands USD) | Q2 2024 (Thousands USD) | YTD 2025 (Thousands USD) | YTD 2024 (Thousands USD) | | :------------------------------------ | :---------------------- | :---------------------- | :----------------------- | :----------------------- | | Net sales | $445,892 | $463,499 | $797,020 | $804,893 | | Gross profit | $257,569 | $264,306 | $459,291 | $459,119 | | Selling, general, and administrative expenses | $195,545 | $196,886 | $375,596 | $365,882 | | Operating income | $62,024 | $67,420 | $83,695 | $93,237 | | Net income | $51,151 | $50,396 | $67,760 | $66,251 | | Diluted EPS | $0.61 | $0.59 | $0.81 | $0.77 | Balance Sheets The condensed consolidated balance sheets present YETI's financial position as of June 28, 2025, December 28, 2024, and June 29, 2024, detailing assets (current and non-current), liabilities (current and non-current), and stockholders' equity, with key data including cash, accounts receivable, inventory, total assets, total liabilities, and total stockholders' equity Condensed Consolidated Balance Sheets (GAAP, Thousands USD) | Metric (GAAP) | June 28, 2025 (Thousands USD) | Dec 28, 2024 (Thousands USD) | June 29, 2024 (Thousands USD) | | :---------------------------- | :---------------------------- | :--------------------------- | :---------------------------- | | Cash | $269,673 | $358,795 | $212,937 | | Accounts receivable, net | $163,595 | $120,190 | $159,050 | | Inventory | $342,131 | $310,058 | $378,296 | | Total current assets | $828,170 | $826,766 | $807,249 | | Total assets | $1,303,044 | $1,286,120 | $1,232,305 | | Total current liabilities | $328,962 | $379,504 | $351,860 | | Long-term debt, net | $70,143 | $72,821 | $75,829 | | Total liabilities | $500,312 | $546,013 | $526,445 | | Total stockholders' equity | $802,732 | $740,107 | $705,860 | Statements of Cash Flows The condensed consolidated statements of cash flows summarize cash movements for the six months ended June 28, 2025, and June 29, 2024, categorized into operating, investing, and financing activities, with net cash used in operating activities improving to $19.1 million in H1 2025 from $47.7 million in H1 2024 Condensed Consolidated Statements of Cash Flows (GAAP, Thousands USD) | Metric (GAAP) | YTD 2025 (Thousands USD) | YTD 2024 (Thousands USD) | | :-------------------------------- | :----------------------- | :----------------------- | | Net cash used in operating activities | $(19,101) | $(47,714) | | Net cash used in investing activities | $(31,086) | $(72,435) | | Net cash used in financing activities | $(40,368) | $(105,802) | | Net decrease in cash | $(89,122) | $(226,023) | | Cash, end of period | $269,673 | $212,937 | Reconciliation of GAAP to Non-GAAP Financial Information This section provides detailed reconciliations of GAAP to non-GAAP financial measures for income statement items, sales breakdowns, and free cash flow, offering a comprehensive view of adjustments Reconciliation of Income Statement Items This section provides a detailed reconciliation of income statement items from GAAP to non-GAAP financial measures for the three and six months ended June 28, 2025, and June 29, 2024, with adjustments including non-cash stock-based compensation expense, long-lived asset impairment, organizational realignment costs, business optimization expenses, transition costs, shareholder matters, net other income (expense), and the tax impact of adjustments - The reconciliation details adjustments for non-cash stock-based compensation expense, long-lived asset impairment, organizational realignment costs, business optimization expenses, transition costs, shareholder matters, and foreign exchange gains and losses[47][52] - Specific adjustments for Q2 2025 included $11.173 million in non-cash stock-based compensation expense and negative $5.773 million in net other income (expense)[52] - Specific adjustments for H1 2025 included $21.317 million in non-cash stock-based compensation expense, $2.76 million in shareholder matters expense, and negative $7.149 million in net other income (expense)[52] Reconciliation of Sales by Channel, Category, Region This section provides a reconciliation of net sales to adjusted net sales by channel (wholesale, direct-to-consumer), product category (coolers & equipment, drinkware, other), and geographic region (United States, international) for the three and six months ended June 28, 2025, and June 29, 2024, noting that GAAP and adjusted net sales are identical due to no product recall adjustments during these periods Q2 2025 Sales Breakdown (Thousands USD) | Sales Breakdown (Q2 2025) | Net Sales (Thousands USD) | Adjusted Net Sales (Thousands USD) | | :------------------------ | :------------------------ | :--------------------------------- | | Wholesale | $197,296 | $197,296 | | Direct-to-consumer | $248,596 | $248,596 | | Coolers & Equipment | $200,572 | $200,572 | | Drinkware | $236,438 | $236,438 | | United States | $367,772 | $367,772 | | International | $78,120 | $78,120 | YTD 2025 Sales Breakdown (Thousands USD) | Sales Breakdown (YTD 2025) | Net Sales (Thousands USD) | Adjusted Net Sales (Thousands USD) | | :------------------------- | :------------------------ | :--------------------------------- | | Wholesale | $352,208 | $352,208 | | Direct-to-consumer | $444,812 | $444,812 | | Coolers & Equipment | $340,789 | $340,789 | | Drinkware | $442,039 | $442,039 | | United States | $639,047 | $639,048 | | International | $157,973 | $157,972 | - GAAP net sales and adjusted net sales remained consistent during the reporting period due to no product recall adjustments[58][59] Reconciliation of Free Cash Flow This section provides a reconciliation of net cash flow from operating activities to free cash flow for the six months ended June 28, 2025, and June 29, 2024, with free cash flow improving to negative $39.044 million in H1 2025 from negative $69.35 million in H1 2024 Free Cash Flow Reconciliation (Thousands USD) | Metric (Thousands USD) | YTD 2025 (Thousands USD) | YTD 2024 (Thousands USD) | | :-------------------------------- | :----------------------- | :----------------------- | | Net cash used in operating activities | $(19,101) | $(47,714) | | Less: Purchases of property and equipment | $(19,943) | $(21,636) | | Free cash flow | $(39,044) | $(69,350) |