YETI Reports Fourth Quarter and Full Year 2025 Results; Provides Full Year 2026 Outlook

Core Insights - YETI Holdings, Inc. reported a 7% increase in net sales for Q4 2025, reaching $583.7 million, compared to $546.5 million in the same period last year [5][6] - The company returned nearly $300 million to shareholders through share repurchases in 2025 [4][37] - International net sales grew by 25%, while drinkware net sales increased by 6% during the fourth quarter [6][18] Fourth Quarter 2025 Highlights - Adjusted net sales increased by 5% to $583.7 million, driven by strong international performance [6][7] - Earnings per share (EPS) rose by 17% to $0.74, while adjusted EPS decreased by 8% to $0.92, impacted by higher tariff costs [6][18] - Operating income decreased by 8% to $75.5 million, reflecting a 250 basis point unfavorable impact from higher tariff costs [15][16] Full Year 2025 Highlights - Full year net sales and adjusted net sales both increased by 2%, with international net sales growing by 16% [20][34] - Coolers & Equipment net sales grew by 7% to $748.5 million, driven by strong performance in bags and soft coolers [20][34] - The company reported operating cash flow of $254.7 million and free cash flow of $212.1 million for the year [6][36] Financial Performance - Gross profit for Q4 increased by 4% to $340.9 million, with a gross margin of 58.4% [11][12] - Selling, general, and administrative (SG&A) expenses rose by 9% to $265.4 million, reflecting higher marketing and growth investments [13][14] - Net income for Q4 increased by 10% to $58.2 million, with a net income margin of 10.0% [18][19] Capital Allocation and Share Repurchase - YETI repurchased 3.1 million shares for $124.9 million in Q4 2025, totaling 8.2 million shares for $297.6 million for the fiscal year [6][37] - The company maintains a strong liquidity position with cash of $188.3 million and total debt of $73.8 million [33] 2026 Outlook - YETI expects full-year sales growth between 6% and 8% for 2026, supported by balanced contributions from drinkware and coolers [38][41] - The company anticipates adjusted operating income growth of 6% to 8%, with an effective tax rate of approximately 24% [41] - Free cash flow is projected to be between $200 million and $225 million [41]