The revenue beat and raised guidance provide a positive narrative, but the EPS miss and margin compression from tariffs are real headwinds. Watch for tariff refund developments under IEEPA and the pace of margin recovery in Q2-Q4. The $500M buyback authorization signals management's confidence in cash flow and undervaluation, but execution on operating leverage is key.
Price Chart
Executive Summary
YETI reported Q1 2026 sales of $380.4M (+8% YoY), beating the $374.7M consensus, but GAAP diluted EPS of $0.13 missed the $0.19 consensus by 31.6% due to a $0.09 unfavorable net impact from incremental tariffs and operating deleverage. The company raised the lower end of its full-year sales growth outlook to 7%-8% (from 6%-8%) and increased its adjusted EPS guidance to $2.83-$2.89 (from $2.77-$2.83), while also expanding its share repurchase authorization to $500M. The strong top-line beat and raised guidance are offset by the significant EPS miss and compressed margins, creating a mixed picture for the stock.
Key Financial Metrics
Key Facts
- Q1 2026 net sales of $380.4M (+8% YoY) beat consensus of $374.7M
- GAAP diluted EPS of $0.13 missed consensus of $0.19 (-31.6% miss)
- Adjusted EPS of $0.26 decreased 16% YoY from $0.31, including a $0.09 tariff headwind
- Gross margin contracted 210 bps to 55.3%, with a 280 bps tariff impact
- Operating income fell 43% to $12.4M (3.3% of sales) due to tariff costs and SGA deleverage
- Raised FY2026 sales growth outlook to 7%-8% (from 6%-8%)
- Raised FY2026 adjusted EPS guidance to $2.83-$2.89 (from $2.77-$2.83), implying 14%-17% growth
- Increased share repurchase authorization to $500M from prior program
- Wholesale channel grew 19% YoY, the best quarterly performance in over three years
- Coolers Equipment sales grew 11%; Drinkware sales grew 5%, including a return to US Drinkware growth
Financial Impact
Revenue beat by $5.7M (+1.5% vs consensus); EPS missed by $0.06 (-31.6% vs consensus). Tariffs reduced EPS by $0.09 in the quarter.
Risk Factors
- Tariff escalation could further compress margins and EPS
- Corporate Sales decline (a drag on DTC) may persist
- SGA expense growth outpacing sales growth (52.0% of sales vs 51.3% a year ago)
- Free cash flow negative $43.8M in Q1, though typical seasonal pattern
- Consumer spending slowdown could impact discretionary outdoor products
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001670592-26-000027 |
| Document: yeti-20260514.htm | 0001670592-26-000027 |
| Document: 0001670592-26-000027-index-headers.html | 0001670592-26-000027 |
| Document: 0001670592-26-000027-index.html | 0001670592-26-000027 |
| Document: 0001670592-26-000027.txt | 0001670592-26-000027 |
| 8-K Data (Synthetic) | 0001670592-26-000027 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Press Release | $44.03 | awaiting T+20 | — | $43.48 (−1.25%) |
Oct 21, 2026 4d ago | Institutional Cluster | $44.03 | awaiting T+20 | — | $43.48 (−1.25%) |
Oct 13, 2026 12d ago | SC 13G | $39.34 | awaiting T+20 | — | $43.48 (+10.52%) |
Sep 17, 2026 5w ago | 8-K | $41.22 $42.02 | ▲ +1.94% | ▲ +0.74% | $43.48 (+5.48%) |
Sep 17, 2026 5w ago | Press Release | $41.22 $42.02 | ▲ +1.94% | ▲ +0.48% | $43.48 (+5.48%) |
Aug 13, 2026 10w ago | 8-K | $45.47 $40.26 | ▼ −11.46% | ▼ −9.71% | $43.48 (−4.38%) |
Aug 13, 2026 10w ago | Press Release | $45.47 $40.26 | ▼ −11.46% | ▼ −9.71% | $43.48 (−4.38%) |
Aug 12, 2026 10w ago | 8-K | $45.47 $40.26 | ▼ −11.46% | ▼ −9.71% | $43.48 (−4.38%) |
May 14, 2026 23w ago | 8-K | $40.69 $50.42 | ▲ +23.91% | ▲ +24.77% | $43.48 (+6.86%) |
Mar 26, 2026 30w ago | DEFA14A | $35.57 $39.38 | ▲ +10.71% | ▼ −2.03% | $43.48 (+22.24%) |
US Market Status
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