YETI Holdings, Inc. - Q2 2026 10-Q Summary
Business Context and Reporting Period
This filing covers the quarterly period ended July 4, 2026 (Q2 2026) and the six months ended July 4, 2026. YETI Holdings, Inc. is a global designer, retailer, and distributor of outdoor products, including coolers, drinkware, bags, and apparel. The company operates through Wholesale and Direct-to-Consumer (DTC) channels across the U.S. and international markets.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Sales | $483.9 million | $445.9 million | $864.3 million | $797.0 million |
| Gross Profit | $322.5 million | $257.6 million | $532.7 million | $459.3 million |
| Gross Margin | 66.7% | 57.8% | 61.6% | 57.6% |
| Operating Income | $93.5 million | $62.0 million | $106.0 million | $83.7 million |
| Net Income | $71.3 million | $51.2 million | $81.2 million | $67.8 million |
| Diluted EPS | $0.94 | $0.61 | $1.06 | $0.81 |
| Cash & Equivalents | $59.8 million (as of July 4, 2026) | |||
| Operating Cash Flow (YTD) | $29.8 million | ($19.1 million) | ||
| Total Debt | $100.8 million ($30.0M Revolver + $71.7M Term Loan) |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 9% in Q2 and 8% YTD, driven by strong performance in the Wholesale channel (+10% Q2, +14% YTD) and DTC channel (+7% Q2, +4% YTD). International sales grew 19% in Q2.
- Margin Expansion: Gross margin expanded significantly by 890 basis points in Q2 (to 66.7%) and 400 basis points YTD (to 61.6%). This was primarily due to a $42.6 million net benefit from IEEPA tariff refunds recognized as a reduction in Cost of Goods Sold (COGS).
- Expense Increases: SG&A expenses rose 17% in Q2 and 14% YTD, driven by higher distribution/fulfillment costs, increased marketing spend (timing shift of brand campaigns), and investments in headcount for international expansion.
- Share Repurchases: The company repurchased 2.8 million shares for approximately $130.0 million in Q2 2026. As of July 4, 2026, $370.0 million remained available under the repurchase program.
Outlook, Risks, and Unusual Items
- IEEPA Tariff Refunds: Following a Supreme Court ruling in February 2026, the company recognized a total net benefit of $45.6 million in Q2 2026 related to IEEPA tariff refunds ($42.6M to COGS, $2.9M interest income). As of July 4, 2026, outstanding receivables included $65.8 million in tariffs and $2.9 million in interest. Subsequent to the period end, an additional $16.2 million in cash refunds was received.
- Tariff Risks: While IEEPA tariffs were ruled unlawful, the company notes that other tariffs remain a core part of trade policy. Persisting or worsening tariff levels could negatively impact gross margins.
- Product Recalls: The company recorded a $0.7 million recall reserve adjustment in Q2 2026 and a $0.9 million adjustment YTD.
- Forward-Looking Statements: Management cautions that results may differ due to macroeconomic conditions, consumer confidence, supply chain disruptions, and currency fluctuations.
Investor Verification Checklist
- Tariff Refund Realization: Verify the timing and certainty of the remaining $65.8 million IEEPA tariff receivable collection and potential tax impacts.
- Margin Sustainability: Assess whether the 66.7% gross margin is sustainable without the one-time $42.6 million tariff refund benefit.
- SG&A Efficiency: Monitor if the increased SG&A spend (up 340 bps in Q2) yields proportional revenue growth in future quarters.
- Liquidity Position: Review the cash burn rate given the significant decrease in cash from $188.3 million to $59.8 million over the six-month period, driven by share repurchases and working capital changes.
- International Growth: Validate the drivers behind the 19% international sales growth and exposure to foreign currency risks.