Financial Performance - In Q4 2025, YETI delivered adjusted net sales of $583.7 million, representing a 5% year-over-year growth, marking the strongest quarterly performance of the year [30] - Adjusted net income decreased 15% to $71.8 million, with adjusted EPS declining to $0.92 from $1, impacted by higher tariff costs [35][39] - Full-year free cash flow reached $212 million, exceeding adjusted net income, highlighting the cash-generating strength of the operating model [6] Business Line Performance - Drinkware sales grew 6% to $380 million in Q4, driven by innovation and strong international demand, despite flat sales in the U.S. [30][31] - Coolers and Equipment sales increased 2% to $192 million, with strong performance in soft coolers and bags, despite supply constraints [31] - Direct-to-consumer sales grew 5% to $394 million, while wholesale sales increased 6% to $189 million, led by international performance [32] Market Performance - International sales grew 25% to $136 million, representing 23% of Q4 sales, with exceptional growth in Europe and Australia [32][38] - The international addressable market has expanded significantly, growing from 2% of sales at IPO to 21% today, with further growth expected [18][19] Company Strategy and Industry Competition - YETI's strategy focuses on product innovation, brand expansion, and global growth, with expectations of 6%-8% net sales growth in 2026 [7][37] - The company is investing in foundational technology and AI to enhance consumer engagement and operational efficiency [23] - The brand's presence is being strengthened through high-impact marketing campaigns and partnerships, particularly in international markets [14][15] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, despite a cautious consumer environment, emphasizing the strength of the brand and innovation pipeline [4][7] - The company anticipates continued growth in international markets and a gradual recovery in the U.S. market, particularly in the drinkware category [37][66] Other Important Information - A leadership transition was announced, with Mike McMullen stepping down as CFO and Scott Bomar appointed as the new CFO [24][25] - The company executed $125 million in share repurchases during Q4, bringing the total for the year to approximately $300 million [6][36] Q&A Session Summary Question: Pricing and Tariffs - Inquiry about pricing increases and potential tariff relief from recent policy changes [48] - Management indicated that pricing impacts would be similar to the previous year, with no current expectations for tariff relief [49][50] Question: International Business and Brand Awareness - Request for details on foundational work for international expansion and brand awareness in various markets [53] - Management highlighted the growth from 2% to 21% in international sales and the establishment of teams in key markets [54][56] Question: Revenue Guidance - Question regarding the conservatism in international revenue guidance and drinkware expectations [58] - Management confirmed that guidance reflects cautious optimism, with inventory levels down significantly year-over-year [61] Question: U.S. Market Improvement - Inquiry about the expected improvement in the U.S. market and contributions from drinkware and international sales [65] - Management noted stabilization in the drinkware category and opportunities for growth across all categories [66][67] Question: Operating Expense Leverage - Request for context on expected operating expense leverage in the back half of the year [68] - Management explained that investments made in 2025 would start to yield leverage, with specific timing dynamics affecting the first half of 2026 [70]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted net sales reached $583.7 million, reflecting a 5% year-over-year growth, marking the strongest quarterly performance of the year [54] - Adjusted net income decreased by 15% to $71.8 million, with adjusted EPS declining to $0.92 from $1, impacted by higher tariff costs [63][70] - Free cash flow for the year was $212 million, exceeding adjusted net income, demonstrating the cash-generating strength of the operating model [9] Business Line Data and Key Metrics Changes - Drinkware sales grew 6% to $380 million, while Coolers and Equipment sales increased by 2% to $192 million, despite supply constraints [54][56] - Direct-to-consumer sales rose 5% to $394 million, with wholesale sales increasing by 6% to $189 million, driven by strong international performance [57][58] - International sales outside the US grew 25% to $136 million, representing 23% of Q4 sales, up from 20% in the prior year [59] Market Data and Key Metrics Changes - The US wholesale market showed ongoing buying caution, with tracked channel inventory down significantly in 2025 [29] - International growth is expected to be in the high teens to 20% range for 2026, with Europe and Australia showing exceptional performance [68][36] - Asia, particularly Japan, is anticipated to accelerate, with a strong foundation laid for future growth [38] Company Strategy and Development Direction - The company aims for 6%-8% net sales growth in 2026, supported by a robust innovation pipeline and expanding global reach [11][66] - Strategic priorities include driving product innovation, broadening brand presence, and expanding internationally, with a focus on markets like China and Korea [12][35] - The company is investing in foundational technology platforms and AI to enhance operational efficiency and consumer engagement [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the brand, despite a challenging consumer environment [6][11] - The fundamentals of the company's strategy remain sound, with expectations for sustained multi-year growth [12] - Management highlighted the importance of maintaining premium positioning and protecting channel integrity while driving profitability [34] Other Important Information - The company announced a leadership transition, with Scott Bomar appointed as the new CFO, succeeding Mike McMullen [46][49] - The company has returned approximately $500 million to shareholders through buybacks over the past two years, reducing shares outstanding by 14% [64] Q&A Session Summary Question: Pricing and Tariffs - Inquiry about details on pricing increases and potential tariff relief [86] - Response indicated pricing impact similar to the previous year, with no current expectations for tariff relief [88] Question: International Business and Brand Awareness - Request for elaboration on foundational work for international expansion and brand awareness [93] - Management highlighted established teams in key markets and the focus on building distribution and e-commerce capabilities [96][100] Question: Revenue Guidance and Inventory Levels - Question regarding the conservatism in international revenue guidance and inventory levels [102] - Management confirmed cautious guidance reflecting current market conditions and lean inventory levels [106] Question: US Market Improvement - Inquiry about the expected sequential improvement in the US market and its drivers [110] - Management noted stabilization in the Drinkware category and opportunities for growth across all categories [111] Question: Operating Expense Leverage - Request for context on expected operating expense leverage in the back half of the year [114] - Management explained timing dynamics affecting OpEx and anticipated leverage from previous investments [115]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported adjusted net sales of $583.7 million, representing a 5% year-over-year growth, marking the strongest quarterly performance of the year [28] - Adjusted gross profit was $341 million, or 58.4% of sales, down 180 basis points year-over-year, impacted by higher tariff costs [31] - Adjusted net income decreased 15% to $71.8 million, or 12.3% of sales, with adjusted EPS declining to $0.92 from $1 [32] Business Line Data and Key Metrics Changes - Drinkware sales grew 6% to $380 million, while U.S. Drinkware sales were flat year-over-year [28][29] - Coolers and Equipment sales grew 2% to $192 million, despite supply constraints [29] - Direct-to-consumer sales grew 5% to $394 million, with growth across all D2C channels [30] Market Data and Key Metrics Changes - International sales grew 25% to $136 million, representing 23% of Q4 sales, up from 20% in the prior year [30] - Europe showed exceptional growth, particularly in the U.K. and Germany, while Australia delivered its strongest performance of the year [30][17] - The international market has grown from 2% of sales at IPO to 21% today, indicating significant expansion potential [16] Company Strategy and Development Direction - The company aims for 6%-8% net sales growth in 2026, driven by innovation and expanding global reach [6][34] - Strategic priorities include driving product innovation, broadening brand reach, and expanding globally [7][16] - The company is investing in foundational technology platforms and AI to enhance consumer engagement and operational efficiency [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, despite a challenging consumer environment [6][7] - The company anticipates healthy growth in 2026 as new production capacity comes online [10] - Management highlighted the importance of maintaining premium positioning and protecting channel integrity [16] Other Important Information - The company executed $125 million in share repurchases during Q4, totaling approximately $300 million for the year [5][33] - A leadership transition was announced, with Scott Bomar appointed as the new CFO [22][23] Q&A Session Summary Question: Pricing and Tariffs - Inquiry about pricing increases and potential tariff relief - Management indicated pricing impacts would be similar to the previous year, with no current expectations for tariff relief [45][46] Question: International Business Foundations - Request for details on foundational work for international expansion - Management highlighted established teams in key markets and the focus on building wholesale and e-commerce capabilities [50][52] Question: Revenue Guidance Context - Inquiry about the conservatism in international revenue guidance and drinkware expectations - Management confirmed a cautious but optimistic outlook, with inventory levels down year-over-year [56][57] Question: U.S. Market Improvement - Request for context on expected sequential improvement in the U.S. market - Management noted stabilization in the drinkware category and opportunities for growth across all categories [62][63] Question: Operating Expense Leverage - Inquiry about expected inflection in operating expense leverage - Management discussed investments made in 2025 that are expected to yield leverage in 2026 [65][66]

Financial Data and Key Metrics Changes - In Q3 2025, YETI reported sales growth of 2%, reaching $487.8 million, driven by double-digit growth in the Coolers and Equipment category and international business [30][31] - Adjusted gross profit decreased 2% to $272.5 million, with a gross margin of 55.9%, down from 58.2% year-over-year, primarily due to higher tariff costs and a lower mix of drinkware sales [36] - Adjusted net income decreased 18% to $49.6 million, with adjusted net income per share down 14% to $0.61 [37][38] Business Line Data and Key Metrics Changes - Drinkware sales declined 4% to $263.8 million, while Coolers and Equipment saw a strong quarter with sales up 12% to $215.4 million [31][32] - Direct-to-consumer sales grew 3% to $288.7 million, with strong performance in the Amazon Marketplace and corporate sales [32][33] - Wholesale channel sales increased 1% to $199 million, with strong sell-through trends despite cautious ordering from retail partners [33][34] Market Data and Key Metrics Changes - International sales grew 14% to $100.4 million, representing approximately 21% of total sales, with significant growth in Europe, Australia, New Zealand, and Canada [34][35] - The U.K. market showed outstanding growth, benefiting from increased brand awareness and consumer engagement [35][36] - Japan's presence is expanding quickly, with over 270 doors open and plans for further distribution in Asia [22][23] Company Strategy and Development Direction - YETI aims for long-term top-line growth in the high single to low double digits, focusing on product innovation and expanding its global presence [4][30] - The company is launching over 30 new products in 2025, with a robust pipeline aligned with brand momentum [6][9] - Strategic partnerships in sports and licensing are expected to enhance brand reach and consumer engagement [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in the drinkware category in Q4, driven by innovation and international growth [41][42] - The company anticipates a low single-digit decline in the U.S. market for the year, primarily due to challenges in the drinkware category [41][42] - YETI's diversified supply chain strategy is expected to mitigate geopolitical risks and enhance operational resilience [24][25] Other Important Information - The company has increased its share repurchase target for 2025 from $200 million to $300 million, reflecting strong cash flow generation [25][38] - YETI is investing in AI technologies to enhance consumer engagement and operational efficiency [26][27] Q&A Session Summary Question: Long-term growth potential and building blocks - Management highlighted product innovation, brand reach, and global opportunities as key components for achieving long-term growth in the high single to low double digits [60][61] Question: Wholesale sell-in and direct-to-consumer conversion - Management noted strong sell-through in wholesale, with expectations for improved sell-in as inventories are worked down, while focusing on enhancing conversion rates on YETI's website [62][68] Question: Scaling opportunities for new sport-focused launches - Management expressed confidence in the drinkware portfolio and the potential contributions from new sport-focused products, anticipating a return to growth in Q4 [71][77] Question: Promotional environment and its impact on sales - Management acknowledged a highly promotional environment for drinkware, emphasizing the importance of innovation and brand relevance in driving sell-through [81][85] Question: Confidence in Q4 sales acceleration - Management indicated strong consumer demand and expected stabilization in the U.S. drinkware market, contributing to improved sales in Q4 [95][101]

Financial Data and Key Metrics Changes - Sales increased by 3% to $351 million, in line with expectations, driven by strong growth in coolers and equipment and continued momentum in international business [35][36] - Gross profit rose by 3% to $201.3 million, representing 57.3% of sales, a 20 basis point decrease year-over-year [42] - Net income decreased by 12% to $25.8 million, or $0.31 per diluted share, reflecting a decrease of 9% compared to the prior year [45][60] Business Line Data and Key Metrics Changes - Coolers and Equipment sales increased by 17% to $140.2 million, marking the fifth consecutive quarter of double-digit growth [36] - Drinkware sales decreased by 4% to $205.6 million, impacted by a challenging market and supply chain disruptions [37][38] - Direct-to-consumer sales grew by 4% to $196.2 million, representing 56% of total sales [39] Market Data and Key Metrics Changes - International sales grew by 22% to $79.9 million, despite a 500 basis point headwind from foreign exchange [41] - Strong performance noted in Europe, particularly in Germany, The Netherlands, and The U.K., with significant growth opportunities identified [29][30] Company Strategy and Development Direction - The company is focused on three key areas: accelerating product innovation, transforming the supply chain, and maintaining operational discipline [5][8] - Plans to introduce over 30 new products in 2025, up from 24 in 2024, despite supply chain constraints [9][67] - Supply chain transformation aims to reduce reliance on China, with expectations that less than 5% of total COGS will be related to products from China by the end of the year [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2025 despite macroeconomic uncertainties and projected headwinds from tariffs and cautious consumer behavior [7][8] - The company anticipates a challenging second quarter with flat to slightly down sales year-over-year, particularly in U.S. Drinkware [51] - Long-term growth potential remains strong, with a focus on international expansion and product innovation [55][93] Other Important Information - The company ended the first quarter with $259 million in cash and a substantial net cash position [46] - Capital expenditures are expected to be approximately $60 million, with a focus on supply chain diversification efforts [60] Q&A Session Summary Question: Number of new product introductions expected for 2025 - The company expects about 30 new products in 2025, compared to 24 in 2024, with a focus on maintaining innovation despite supply chain disruptions [67][68] Question: Impact of tariffs and supply chain changes - Approximately 90% of the $100 million tariff impact is attributed to China, with expectations of a much stronger position by the end of the year as supply chain diversification progresses [73][75] Question: Outlook for the Drinkware business - The company anticipates durable demand in the Drinkware category, with ongoing innovation and a diversified product portfolio to address various consumer needs [79][80] Question: Approach to pricing amid rising costs - The company is focused on targeted pricing strategies while shifting supply chains, aiming for a stable pricing environment that supports long-term growth [89][90] Question: Acceleration of international growth - The company sees significant growth opportunities in established international markets and plans to leverage the launch in Japan to expand further into Asia [91][93]

Financial Data and Key Metrics Changes - Sales increased by 3% to $351 million, driven by strong growth in coolers and equipment and continued momentum in international business [38][39] - Gross profit increased by 3% to $201.3 million, representing 57.3% of sales, a 20 basis point decrease year-over-year [45] - Net income decreased by 12% to $25.8 million, or $0.31 per diluted share, reflecting a decrease of 9% compared to the prior year [47][62] Business Line Data and Key Metrics Changes - Coolers and Equipment sales increased by 17% to $140.2 million, marking the fifth consecutive quarter of double-digit growth [39] - Drinkware sales decreased by 4% to $205.6 million, impacted by a challenging market and supply chain disruptions [40][41] - Direct-to-consumer sales grew by 4% to $196.2 million, representing 56% of total sales [42] Market Data and Key Metrics Changes - International sales grew by 22% to $79.9 million, despite a 500 basis point headwind from foreign exchange [44] - Strong performance noted in Europe, particularly in Germany, The Netherlands, and The U.K., with significant growth opportunities identified [31][32] - The U.S. market is expected to be flat to down low single digits year-over-year, while international business is projected to grow between 15% to 20% [56] Company Strategy and Development Direction - The company is focused on three key areas: product innovation, supply chain transformation, and operational discipline [5][11] - Plans to introduce over 30 new products in 2025, up from 24 in 2024, despite supply chain constraints [8][69] - A significant shift in Drinkware production out of China is underway, with expectations that less than 5% of total COGS will be related to products from China by the end of the year [12][65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2025 despite macroeconomic uncertainties and projected headwinds from tariffs and cautious consumer behavior [6][50] - The company anticipates a challenging second quarter with flat to slightly down sales year-over-year, particularly in U.S. Drinkware [53] - Long-term growth potential remains strong, with a focus on brand resilience and product innovation [35][65] Other Important Information - The company ended Q1 with $259 million in cash and a substantial net cash position, reflecting strong liquidity [48] - Capital expenditures are expected to be approximately $60 million, with a focus on supply chain diversification efforts [62] - The company is closely monitoring tariff policies and implementing mitigation strategies to manage costs [64] Q&A Session Summary Question: Number of new product introductions expected for 2025 - The company expects about 30 new products in 2025, compared to 24 in 2024, with a focus on maintaining innovation despite supply chain disruptions [69] Question: Impact of tariffs and supply chain changes - Approximately 90% of the $100 million tariff impact is related to China, with expectations of a significant reduction in exposure to Chinese goods by 2026 [76] Question: Outlook for the Drinkware business - The company anticipates a durable demand in the Drinkware category, with ongoing diversification efforts to address various consumer needs [81] Question: Approach to pricing amid rising costs - The company is focused on targeted pricing strategies while shifting supply chains to mitigate tariff impacts, ensuring long-term stability [92] Question: Acceleration of international growth - The company sees significant growth opportunities in established international markets and plans to leverage the Japan launch to expand into the rest of Asia [95]