Core Thesis - YETI Holdings, Inc. is positioned as a premium outdoor brand with strong growth potential, driven by brand loyalty, high-margin products, and a scalable direct-to-consumer model [1][6]. Product Offering - YETI's revenue is primarily generated from drinkware, which has strong repeat purchase behavior, while coolers and equipment provide durability, and bags and storage enhance travel utility [2][4]. - The company has expanded into apparel, creating a lifestyle brand that turns users into brand ambassadors [2]. Business Model - YETI's direct-to-consumer channels, including e-commerce and physical stores, yield strong margins and valuable customer insights [3]. - The company's growth is fueled by a near-cult brand loyalty and premium pricing that is justified by product performance [3][5]. Brand Philosophy - YETI differentiates itself by combining functionality with cultural relevance, promoting sustainability through durable products and storytelling [4][5]. - The brand appeals to a wide audience, from outdoor enthusiasts to urban consumers, fostering a community-driven approach that aligns with customer values [4]. Market Performance - Despite a 12.8% decline in stock price since previous coverage, the bullish thesis on YETI remains valid due to its resilient brand and growth potential [6].

Financial Performance - Net revenue for Q2 2025 reached $214 million, a 13.9% increase year-over-year[10] - Adjusted EBITDA for Q2 2025 was $25 million, representing an 11.7% margin[10] - The company projects full year 2025 net revenue to be between $880 million and $888 million, representing approximately 14-15% year-over-year growth[28] - The company anticipates full year 2025 Adjusted EBITDA to be between $98 million and $101 million, with an 11.1-11.4% margin[28] - For Q3 2025, the company expects net revenue between $223 million and $225 million, a growth of approximately 16-17% year-over-year, with an Adjusted EBITDA margin of approximately 11%[30] Business Highlights - The company has 298 stores, including 293 in the U S and 5 in Canada[8, 23] - The company estimates a potential footprint of over 900 stores[24] - Over 20 million pairs of glasses have been distributed through the Buy a Pair, Give a Pair program[8] Customer Retention - The company demonstrates compelling and consistent sales retention rates, with customer cohorts showing increasing sales retention over time[17]

Financial Performance - Net revenue for Q1 2025 reached $224 million, an 11.9% year-over-year growth compared to Q1 2024[10] - Adjusted EBITDA for Q1 2025 was $29.2 million, representing 13.1% of net revenue[10] - The company projects full year 2025 net revenue to be between $869 million and $886 million, representing approximately 13-15% year-over-year growth[28] - Full year 2025 adjusted EBITDA is projected to be between $91 million and $97 million, with an adjusted EBITDA margin of approximately 10.5-11.0%[28] - Q2 2025 net revenue is expected to be between $211 million and $214 million, reflecting approximately 12-14% year-over-year growth[30] - Q2 2025 adjusted EBITDA is projected to be between $20 million and $22 million, with an approximate 10% margin[30] Retail Expansion - The company has 287 retail stores as of March 31, 2025, including 282 in the U S and 5 in Canada[8, 23] - 11 net new retail stores were opened in Q1 2025[23] - The company sees potential for 900+ store locations in the future[24] Market Overview - The company's sales represent approximately 1% of the $68 billion U S eyewear market[8]