Strategic Positioning - The company is focusing on 'agentic shopping' and digital discovery, utilizing AI-driven tools like the 'Ranger' assistant to enhance conversion rates on owned channels [1] - A successful supply chain transformation has shifted major production exposure from China to factories in Thailand and Vietnam, improving long-term resilience [1] Market Performance - US wholesale performance indicates ongoing retailer caution and tight inventory planning, with sell-through consistently outpacing sell-in throughout the fiscal year [2] - The brand's resilience is attributed to a multiyear shift towards a diversified product portfolio, including cookware, barware, and technical hike packs [3] Financial Overview - Capital allocation priorities include $100 million in planned share repurchases, representing about 50% of the projected $200 million to $225 million in free cash flow [4] - Operating margins are projected to remain flat at approximately 14.4% for the full year, with a decline in the first half offset by an expansion in the second half [5] - Fiscal 2026 guidance anticipates 6% to 8% net sales growth, supported by a strong innovation pipeline and high-teens to 20% growth in international markets [5] Challenges and Changes - Tariffs are expected to present an $80 million headwind to the cost of goods in 2026 compared to 2024, impacting gross margins by 430 basis points over two years [5] - A leadership transition is underway with Scott Bomar appointed as CFO, succeeding Michael McMullen, who will remain in an advisory role [5] - Supply constraints in high-demand categories are expected to ease as new production capacity comes online in the first half of 2026 [5]

Core Viewpoint - Yeti Holdings' stock experienced a significant decline of up to 13% following its earnings report, despite positive sales momentum and future growth expectations [1][2]. Financial Performance - Yeti reported a 5% increase in adjusted net sales for Q4, driven by strong international sales [4]. - Management projects adjusted net sales growth of 6% to 8% and net income per share growth of 12% to 14% for 2026 [5]. Management Changes - The company is transitioning to a new CFO, Scott Bomar, who previously held an executive position at Home Depot. The current CFO, Mike McMullen, will assist in the transition until the end of May [3]. Market Reaction - The stock's decline is attributed to profit-taking after a 40% gain over the past six months, rather than concerns over the management change [2][4].

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]

FOURTH QUARTER 2025 HIGHLIGHTS 0 43 69 0 179 227 0 130 210 116 193 48 81 81 81 187 214 255 242 242 242 201 202 200 148 148 148 45 45 45 0 67 108 1 SAFE HARBOR STATEMENT Disclaimer 0 43 69 We are not making any representations or warranties, express or implied, with respect to the information (financial, business, legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this presentation. Forward Looking Statements This presentatio ...

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]

Core Viewpoint - YETI Holdings, Inc. has appointed Scott Bomar as the new Chief Financial Officer, succeeding Mike McMullen, who will assist in the transition until May 31, 2026 [1][3] Group 1: Leadership Transition - Scott Bomar will officially take over as CFO on February 23, 2026, bringing over 20 years of financial and operational leadership experience from his previous roles, including Senior Vice President of Finance at Home Depot [1][2] - Mike McMullen has served as CFO for a decade and played a crucial role in YETI's transformation, including its public listing in 2018 [3][4] Group 2: Scott Bomar's Background - Bomar has a strong track record in financial operations, having led various aspects of Home Depot's finance, including financial planning, treasury, and acquisition integration [2][5] - He has also held significant operational responsibilities, including managing Home Depot's $5 billion Home Services business unit and retail operations in China [2][5] Group 3: Company Strategy and Future Outlook - YETI aims to capitalize on growth opportunities by focusing on product innovation, expanding global presence, and penetrating its total addressable market [4][3] - The company is committed to disciplined execution and driving long-term shareholder value, leveraging Bomar's expertise in cost management and operational efficiency [3][4]

Core Viewpoint - Wall Street analysts anticipate Yeti (YETI) to report quarterly earnings of $0.88 per share, reflecting a year-over-year decline of 12%, while revenues are expected to reach $583.16 million, indicating a 5% increase from the previous year [1] Group 1: Earnings and Revenue Estimates - Analysts project Yeti's earnings per share (EPS) to be $0.88, which shows no revision in the consensus estimate over the past 30 days [1] - Revenue expectations stand at $583.16 million, marking a 5% increase compared to the same quarter last year [1] Group 2: Sales by Channel and Category - 'Net Sales by Channel- Direct-to-consumer' is estimated at $391.25 million, reflecting a year-over-year increase of 6.2% [4] - 'Net Sales by Channel- Wholesale' is projected to be $191.80 million, indicating a 7.8% increase from the previous year [4] - 'Net Sales by Category- Other' is expected to reach $8.85 million, showing a 6.7% year-over-year change [4] - 'Net Sales by Category- Drinkware' is forecasted at $367.60 million, suggesting a 2.7% increase year over year [5] - 'Net Sales by Category- Coolers & Equipment' is anticipated to be $206.15 million, indicating a significant year-over-year change of 14.4% [5] Group 3: Geographic Revenue Estimates - 'Geographic Revenues- United States' is projected to be $447.70 million, reflecting a 2.3% increase from the year-ago quarter [5] - 'Geographic Revenues- International' is estimated at $134.22 million, suggesting a substantial year-over-year increase of 23.2% [6] Group 4: Stock Performance and Outlook - Over the past month, Yeti shares have declined by 5.5%, compared to a 1.4% decrease in the Zacks S&P 500 composite [6] - Yeti holds a Zacks Rank 2 (Buy), indicating a likelihood of outperforming the overall market in the upcoming period [6]

Core Viewpoint - Yeti Holdings' stock has increased by 44% since reporting Q3 2025 earnings, despite a significant decline in gross margins and operating margins, indicating market optimism about the company's future potential [1]. Financial Performance - Yeti's stock is currently trading at approximately $48 per share, nearing levels not seen since December 2023 [1]. - The company reported a gross margin decline from 58.2% to 55.9% and adjusted operating margins at 13.7%, the lowest in years [1]. - Current gross margin stands at 57.79% [2]. Market Dynamics - The decline in gross margin is attributed to tariff impacts on China-sourced goods and a shift in product mix, with higher-margin drinkware sales declining by 4% while lower-margin coolers grew by 12% [5][6]. - Drinkware now constitutes about 54% of sales, down from previous levels, while coolers account for 44% [6]. Supply Chain and Manufacturing - Yeti is reducing its reliance on Chinese manufacturing, projecting that exposure will be less than 5% of cost of goods sold by 2026 [5]. - The company is diversifying its supply chain across countries like Vietnam, the Philippines, and Mexico [5]. Growth Opportunities - Direct-to-consumer sales have increased from 8% to 60% of total revenue over the past decade, providing a scalable platform for growth [8]. - International sales grew by 14% in Q3 2025, now representing about 20% of revenue, with significant growth potential in Asia [9]. Strategic Initiatives - Yeti is targeting new customer segments beyond outdoor enthusiasts, including partnerships in sports and entertainment [10]. - The company has acquired Helimix for $38 million to expand into the sports nutrition market [10]. Competitive Landscape - Competition in the drinkware segment has intensified, with rivals like Stanley gaining market share among younger consumers [11]. - The domestic tumbler category shows signs of saturation, which may prolong pressure on gross margins [11]. Financial Health and Shareholder Returns - Yeti has repurchased $150 million of stock in Q3 2025 and raised its buyback target for the year from $200 million to $300 million, indicating strong cash generation [13]. - The company expects to generate $200 million in free cash flow for 2025 and has a solid balance sheet with approximately $90 million in net cash [14]. Valuation - At around $48 per share, Yeti trades at about 19.5 times management's 2025 earnings and free cash flow expectations, which is considered reasonable given the company's growth potential [15].