# YETI Holdings, Inc.: Form 10-Q for the period ended Jul 4, 2026

- Company: [YETI Holdings, Inc.](/companies/yeti.md) (CIK 1670592)
- Form: 10-Q
- Filed: 2026-08-13
- Accepted by EDGAR: Aug 13, 2026, 06:06 ET
- Period: 2026-07-04
- Accession: 0001670592-26-000040
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1670592/000167059226000040/yeti-20260704.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1670592/000167059226000040/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2026-07-04.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2026-04-05 to 2026-07-04 | $483.9m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2026-01-04 to 2026-07-04 | $864.3m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2026-04-05 to 2026-07-04 | $161.3m | us-gaap:CostOfRevenue |
| Cost of revenue | 6 months, 2026-01-04 to 2026-07-04 | $331.5m | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2026-04-05 to 2026-07-04 | $322.5m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2026-01-04 to 2026-07-04 | $532.7m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2026-04-05 to 2026-07-04 | $229.0m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2026-01-04 to 2026-07-04 | $426.8m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2026-04-05 to 2026-07-04 | $93.5m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2026-01-04 to 2026-07-04 | $106.0m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2026-04-05 to 2026-07-04 | $22.9m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2026-01-04 to 2026-07-04 | $25.4m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2026-04-05 to 2026-07-04 | $71.3m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2026-01-04 to 2026-07-04 | $81.2m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2026-04-05 to 2026-07-04 | $0.94 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2026-01-04 to 2026-07-04 | $1.06 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2026-04-05 to 2026-07-04 | $0.95 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2026-01-04 to 2026-07-04 | $1.08 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2026-04-05 to 2026-07-04 | 75,782,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2026-01-04 to 2026-07-04 | 76,265,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2026-01-04 to 2026-07-04 | $29.8m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2026-01-04 to 2026-07-04 | $25.5m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Share repurchases | 6 months, 2026-01-04 to 2026-07-04 | $130.0m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Current assets | at 2026-07-04 | $717.0m | us-gaap:AssetsCurrent |
| Total assets | at 2026-07-04 | $1.30bn | us-gaap:Assets |
| Current liabilities | at 2026-07-04 | $409.6m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2026-07-04 | $692.2m | us-gaap:Liabilities |
| Long-term debt | at 2026-07-04 | $96.4m | us-gaap:LongTermDebtNoncurrent |
| Shareholders' equity | at 2026-07-04 | $609.5m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 33,922 characters.

The following discussion and analysis contains forward-looking statements within the meaning of the federal securities laws and should be read in conjunction with the disclosures we make concerning risks and other factors that may affect our business and operating results, including those described in more detail in Part I “Item 1A. Risk Factors” included in our Annual Report on Form 10-K for the year ended January 3, 2026. The information contained in this section should also be read in conjunction with our consolidated financial statements and related notes and the information contained elsewhere in this Report. See also “Cautionary Note Regarding Forward-Looking Statements” immediately prior to Part I, Item 1 in this Quarterly Report on Form 10-Q.

The terms “we,” “us,” “our,” “YETI,” and “the Company” as used herein, and unless otherwise stated or indicated by context, refer to YETI Holdings, Inc. and its subsidiaries.

### Business Overview

Headquartered in Austin, Texas, YETI is a global designer, retailer, and distributor of innovative outdoor products. From coolers and drinkware to bags and apparel, YETI products are built to meet the unique and varying needs of diverse outdoor pursuits, whether in the remote wilderness, at the beach, or anywhere life takes you. By consistently delivering high-performing, exceptional products, we have built a strong following of brand loyalists throughout the world, ranging from serious outdoor enthusiasts to individuals who simply value products of uncompromising quality and design. We have an unwavering commitment to outdoor and recreation communities, and we are relentless in our pursuit of building superior products for people to confidently enjoy life outdoors and beyond.

We distribute our products through a balanced omni-channel platform, consisting of our wholesale and direct-to-consumer (“DTC”) channels. In our wholesale channel, we sell our products through select national and regional accounts and an assemblage of independent retail partners throughout the United States, Canada, Australia, New Zealand, the United Kingdom, Europe, and Japan, among others. We carefully evaluate and select retail partners that have an image and approach that are consistent with our premium brand and pricing. Our domestic national and regional specialty retailers include Dick’s Sporting Goods, REI, Academy Sports + Outdoors, Bass Pro Shops, Ace Hardware, Scheels, and Tractor Supply Company. In our international regions, our notable retailers include FGL Sports and SportChek in Canada, BCF and Rebel in Australia, and GO Outdoors in the United Kingdom. We sell our products in our DTC channel to customers through our websites and YETI Authorized on the Amazon Marketplace, as well as in our retail stores. Additionally, we offer customized products with licensed marks and original artwork primarily through our DTC channel, including our corporate sales channel, on our websites, and at select retail stores. Our corporate sales program offers customized products to corporate customers for a wide-range of events and activities and in certain instances may also offer products to re-sell.

#### Product Introductions and Updates

During the first quarter of 2026, within our Drinkware category, we expanded our bottles and mugs offerings with the launch of a new size of the Rambler Travel Bottle and the introduction of the redesigned Straw Mug 2.0 in two sizes. We continued to broaden our coffeeware and barware offerings with the launch of the Rambler Ceramic Stackable Lowball and the Rambler Ceramic Wine Tumbler. In our Coolers & Equipment category, we expanded our pursuit bags offerings with the introduction of the Skala Collection of Hiking Packs in eight sizes. Within our soft cooler bags offerings, we further expanded the Daytrip Collection with the launch of the Insulated Snack Box in two sizes and the Insulated Box. We also introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.

During the second quarter of 2026, within our Drinkware category, we introduced the new Rambler Water Bottle with Flip Chug Cap in two sizes. We also expanded our cookware and barware lineup with the launch of the Carbon Steel Skillet in two sizes and the introduction of the Rambler Beverage Tub. In our Coolers & Equipment category, we expanded our hard cooler offerings with the launch of the Roadie 8 and added the Insulated Backpack and a new size of the Insulated Tote Bag to our Daytrip Collection of soft cooler bags. Within our bags portfolio, we further expanded the Camino Collection with the launch of the Camino Zip Carryall Tote in two sizes. We also expanded our outdoor living offerings with the introduction of the Trailhead Field Chair and introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.

#### Macroeconomic Conditions

Our business is exposed to and impacted by macroeconomic factors, including but not limited to uncertainty surrounding inflationary pressures, consumer confidence and purchasing behaviors, foreign currency exchange rate fluctuations, geopolitical conflicts such as the ongoing conflicts in the Middle East, and government actions and policies, including changes in interest rates and tax rates. In 2026, we have experienced inflationary pressures in certain costs, such as distribution and fulfillment, and expect such pressures to continue. The ultimate impact of macroeconomic factors on our business and results of operations for 2026 remains uncertain.

During 2025, the U.S. government implemented incremental tariffs on imports from many countries where our products are produced, including under the International Emergency Economic Powers Act (“IEEPA”). As a result, the cost to import our products into the U.S. increased, which has had a material negative impact on our gross margins and results of operations. In February 2026, the U.S. Supreme Court found unlawful the tariffs imposed under the IEEPA. Notwithstanding this decision, tariffs remain a core part of the Administration’s trade policy. If current tariff levels persist or worsen, we expect they will continue to have a negative impact on our gross margins and results of operations.

#### IEEPA Tariff Refunds

In April 2026, following the Supreme Court’s ruling, the U.S. Customs and Border Protection launched its Consolidated Administration and Processing of Entries portal and commenced a phased process to accept claims for potential refunds of IEEPA tariffs previously paid. We paid approximately $66.5 million in tariffs under the IEEPA. The IEEPA tariff refunds are subject to taxes and other adjustments and may cause us to incur additional costs.

During the second quarter of 2026, we concluded that recovery of tariffs under the IEEPA was probable. The total net benefit of the IEEPA tariff refund was $45.6 million for the second quarter of 2026, consisting of a $42.6 million net benefit recognized as a reduction of cost of goods sold and $2.9 million of interest income. We also recognized additional IEEPA tariff refunds of $10.0 million as a reduction of the carrying value of inventory for IEEPA tariffs previously capitalized as cost of inventory.

During the second quarter of 2026, we received cash refund payments totaling $0.7 million for IEEPA tariffs. As of July 4, 2026, our outstanding receivables included $65.8 million of IEEPA tariffs and $2.9 million of interest. Subsequent to July 4, 2026, we received cash refund payments of $16.2 million for IEEPA tariffs and $0.9 million for interest.

### General

### Components of Our Results of Operations

***Net Sales.*** Net sales are comprised of wholesale channel sales to our retail partners and sales through our DTC channel. Net sales in both channels reflect the impact of product returns as well as discounts for certain sales programs or promotions.

We discuss the net sales of our products in our two primary categories: Coolers & Equipment and Drinkware. Our Coolers & Equipment category includes hard coolers, soft coolers, bags, outdoor equipment, and cargo, as well as accessories and replacement parts for these products. Our Drinkware category is primarily composed of our stainless-steel drinkware products and related accessories. In addition, our Other category is primarily comprised of ice substitutes and YETI-branded gear, such as shirts, hats, and other miscellaneous products.

***Gross profit.*** Gross profit reflects net sales less cost of goods sold, which primarily includes the purchase cost of our products from our third-party contract manufacturers, inbound freight and duties, product quality testing and inspection costs, depreciation expense of our molds, tooling, and equipment, and the cost of customizing products. We calculate gross margin as gross profit divided by net sales. Our DTC channel generally generates higher gross margin than our wholesale channel due to differentiated pricing between these channels.

***Selling, general, and administrative expenses.*** Selling, general, and administrative (“SG&A”) expenses consist primarily of marketing costs, employee compensation and benefits costs, including non-cash stock-based compensation, distribution and fulfillment costs, depreciation and amortization expense, and general and administrative expenses. Our distribution and fulfillment costs include costs of our third-party warehousing and logistics operations, outbound freight costs, costs of operating on third-party DTC marketplaces, and credit card processing fees. Certain distribution and fulfillment costs will vary as they are dependent on our sales volume and our channel mix. Our DTC channel variable SG&A costs are generally higher as a percentage of net sales than our wholesale channel distribution costs.

***Fiscal Year.*** We have a 52- or 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Our fiscal year ending January 2, 2027 (“2026”) is a 52-week period. The first quarter of our fiscal year 2026 ended on April 4, 2026, the second quarter ended on July 4, 2026, and the third quarter ends on October 3, 2026. Our fiscal year ended January 3, 2026 (“2025”) was a 53-week period. Unless otherwise stated, references to particular years, quarters, months and periods refer to our fiscal years and the associated quarters, months, and periods of those fiscal years. The unaudited condensed consolidated financial results presented herein represent the three and six months ended July 4, 2026 and June 28, 2025.

### Results of Operations

The discussion below should be read in conjunction with the following table and our unaudited condensed consolidated financial statements and related notes contained elsewhere in this Quarterly Report on Form 10-Q. The following table sets forth selected statement of operations data, and their corresponding percentage of net sales, for the periods indicated (dollars in thousands):

| Statement of Operations | Three Months Ended July 4, 2026 |  | June 28, 2025 |  | Six Months Ended July 4, 2026 |  | June 28, 2025 |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net sales | $483,868 | 100% | $445,892 | 100% | $864,282 | 100% | $797,020 | 100% |
| Cost of goods sold | 161,344 | 33% | 188,323 | 42% | 331,547 | 38% | 337,729 | 42% |
| Gross profit | 322,524 | 67% | 257,569 | 58% | 532,735 | 62% | 459,291 | 58% |
| Selling, general, and administrative expenses | 229,006 | 47% | 195,545 | 44% | 426,779 | 49% | 375,596 | 47% |
| Operating income | 93,518 | 19% | 62,024 | 14% | 105,956 | 12% | 83,695 | 11% |
| Interest income, net | 1,617 | —% | 295 | —% | 500 | —% | 603 | —% |
| Other (expense) income, net | (889) | —% | 5,773 | 1% | 90 | —% | 7,149 | 1% |
| Income before income taxes | 94,246 | 19% | 68,092 | 15% | 106,546 | 12% | 91,447 | 11% |
| Income tax expense | (22,929) | 5% | (16,941) | 4% | (25,378) | 3% | (23,687) | 3% |
| Net income | $71,317 | 15% | $51,151 | 11% | $81,168 | 9% | $67,760 | 9% |

### Comparison of the Three Months Ended July 4, 2026 and June 28, 2025

*(dollars in thousands)*

|  | Three Months Ended July 4, 2026 | June 28, 2025 $% | Change |
| --- | ---: | ---: | ---: |
| Net sales | $483,868 | $445,892 | $37,976 9% |
| Gross profit | $322,524 | $257,569 | $64,955 25% |
| Gross margin (gross profit as a % of net sales) | 66.7% | 57.8% | 890 basis points |
| Selling, general, and administrative expenses | $229,006 | $195,545 | $33,461 17% |
| SG&A as a % of net sales | 47.3% | 43.9% | 340 basis points |

### Net Sales

Net sales increased $38.0 million, or 9%, to $483.9 million for the three months ended July 4, 2026, compared to $445.9 million for the three months ended June 28, 2025.

Net sales in our channels were as follows:

- DTC channel net sales increased $17.3 million to $265.9 million, compared to $248.6 million in the prior year quarter, primarily due to robust performance in our Amazon Marketplace business as well as growth in YETI websites and YETI retail stores. This strength was partially offset by a decline in Corporate Sales. DTC channel mix was 55% in the second quarter of 2026, compared to 56% in the second quarter of 2025.
- Wholesale channel net sales increased $20.7 million, or 10%, to $218.0 million, compared to $197.3 million in the same period last year, driven by strong growth across the U.S. and our international regions, reflecting healthy consumer demand.

Net sales in our two primary product categories were as follows:

- Drinkware net sales increased by $4.9 million, or 2%, to $241.4 million, compared to $236.4 million in the prior year quarter, primarily due to international growth. The Drinkware category growth was supported by continued innovation in our Drinkware product portfolio.
- Coolers & Equipment net sales increased by $31.8 million, or 16%, to $232.4 million, compared to $200.6 million in the same period last year, primarily driven by strong performance in bags, soft coolers, cargo, and outdoor living, reflecting continued strength across core and expanded categories.

Net sales in our geographical regions were as follows:

- Net sales in the U.S. increased $23.2 million, or 6%, to $391.0 million, compared to $367.8 million in the prior year quarter, primarily driven by growth in Coolers & Equipment, reflecting solid consumer demand trends, as Drinkware remained flat. Demand was robust in the wholesale channel as well as Amazon Marketplace and YETI retail, partially offset by a decline in Corporate Sales.
- Net sales in international locations increased $14.8 million, or 19%, to $92.9 million, compared to $78.1 million in the prior year quarter, reflecting strong growth in Europe and Australia, as well as growth in Canada and Japan. Performance was driven by strong growth across our key channels, reflecting increased brand awareness across key markets. Net sales in international locations represented 19% and 18% of total net sales in the second quarter of 2026 and 2025, respectively.

### Gross Profit

Gross profit increased $65.0 million, or 25%, to $322.5 million, compared to $257.6 million in the prior year quarter. Gross margin rate increased 890 basis points to 66.7% from 57.8% in the prior year quarter, primarily due to the following factors:

- the net impact of the recognition of IEEPA tariff refunds, which favorably impacted gross margin by 890 basis points;
- the impact of selective price increases on certain products implemented during the first quarter of 2026, which favorably impacted gross margin by 40 basis points;
- favorable foreign currency exchange rates, which favorably impacted gross margin by 20 basis points;
- lower product costs, which favorably impacted gross margin by 10 basis points; and
- other impacts, which favorably impacted gross margin by 40 basis points.

These increases were partially offset by higher tariff costs, which unfavorably impacted gross margin by 110 basis points.

### Selling, General, and Administrative Expenses

SG&A expenses increased $33.5 million, or 17%, to $229.0 million for the three months ended July 4, 2026, compared to $195.5 million for the three months ended June 28, 2025. As a percentage of net sales, SG&A expenses increased 340 basis points to 47.3% from 43.9% in the prior year quarter. The increase in SG&A expenses was primarily driven by:

- an increase in distribution and fulfillment expenses of $10.4 million (increasing SG&A as a percent of sales by 90 basis points) primarily due to higher outbound freight, online marketplace fees, and third-party logistics fees;
- an increase in marketing and advertising expenses of $10.6 million, primarily driven by a shift in the timing of our brand campaign into the second quarter of 2026 relative to last year’s brand campaign in the fourth quarter of 2025 (increasing SG&A as a percent of sales by 160 basis points);
- an increase in general and administrative expenses of $5.7 million (increasing SG&A as a percent of sales by 40 basis points) mainly due to growth investments in facilities and higher professional fees;
- an increase in employee compensation and benefits expenses of $5.0 million (increasing SG&A as a percent of sales by 20 basis points), including higher incentive compensation and investments in headcount to support our international expansion, partially offset by lower non-cash stock-based compensation expense;
- an increase in depreciation and amortization expense of $1.0 million (increasing SG&A as a percent of sales by 10 basis points); and
- the impact of a $0.7 million recall reserve adjustment in the current period (increasing SG&A as a percent of sales by 20 basis points).

### Non-Operating Expenses

Interest income, net was $1.6 million for the three months ended July 4, 2026, compared to $0.3 million for the three months ended June 28, 2025. The change versus the prior year quarter was primarily due to the $2.9 million interest income related to IEEPA tariff refunds, partially offset by a decrease in other interest income.

Other expense was $0.9 million for the three months ended July 4, 2026. Other income was $5.8 million for the three months ended June 28, 2025. The change versus the prior year quarter was primarily due to higher foreign currency losses on intercompany balances.

Income tax expense was $22.9 million for the three months ended July 4, 2026, compared to $16.9 million for the three months ended June 28, 2025. The increase in income tax expense was primarily due to higher income before income taxes. The effective tax rate was 24.3% for the three months ended July 4, 2026 compared to 24.9% for the three months ended June 28, 2025. The lower effective tax rate was primarily due to the impact of a discrete tax benefit related to stock-based compensation in the three months ended July 4, 2026.

### Six Months Ended July 4, 2026 Compared to June 28, 2025

*(dollars in thousands)*

|  | Six Months Ended July 4, 2026 | June 28, 2025 $% | Change |
| --- | ---: | ---: | ---: |
| Net sales | $864,282 | $797,020 | $67,262 8% |
| Gross profit | $532,735 | $459,291 | $73,444 16% |
| Gross margin (gross profit as a % of net sales) | 61.6% | 57.6% | 400 basis points |
| Selling, general, and administrative expenses | $426,779 | $375,596 | $51,183 14% |
| SG&A as a % of net sales | 49.4% | 47.1% | 230 basis points |

### Net Sales

Net sales increased $67.3 million to $864.3 million for the six months ended July 4, 2026, compared to $797.0 million for the six months ended June 28, 2025.

Net sales in our two channels were as follows:

- DTC channel net sales increased $17.9 million, or 4%, to $462.7 million, compared to $444.8 million in the prior year period, primarily due to robust performance in our Amazon Marketplace business, YETI websites, and YETI retail stores, partially offset by a decline in Corporate Sales, primarily reflecting cautious purchasing behavior during the first quarter of 2026. DTC channel mix was 54% and 56% for the six months ended July 4, 2026 and June 28, 2025, respectively.
- Wholesale channel net sales increased $49.4 million, or 14%, to $401.6 million, compared to $352.2 million in the same period last year, driven by strong growth across the U.S. and our international regions, reflecting healthy consumer demand.

Net sales in our two primary product categories were as follows:

- Drinkware net sales increased by $16.3 million, or 4%, to $458.3 million, compared to $442.0 million in the prior year period, primarily due to growth in our international regions and the U.S. In our Drinkware category, growth was supported by continued innovation in our Drinkware product portfolio.
- Coolers & Equipment net sales increased by $47.7 million, or 14%, to $388.5 million, compared to $340.8 million in the same period last year, primarily driven by strong performance in bags, soft coolers, outdoor living and cargo.

Net sales in our geographical regions were as follows:

- Net sales in the U.S. increased $45.0 million, or 7%, to $684.1 million, compared to $639.1 million in the prior year period, driven by growth in both Coolers & Equipment and Drinkware, reflecting solid consumer demand trends. Demand was strong in the wholesale channel as well as Amazon Marketplace, YETI websites, and YETI retail, partially offset by a decline in Corporate Sales.
- Net sales in international locations increased $22.3 million, or 14%, to $180.2 million compared to $158.0 million in the prior year period, reflecting strong growth in Europe and Australia, as well as growth in Canada and Japan. Performance was driven by strong growth in the wholesale channel, YETI website, and Amazon Marketplace, reflecting increased brand awareness across key markets. Net sales in international locations represented 21% and 20% of total net sales in the first six months of 2026 and 2025, respectively.

### Gross Profit

Gross profit increased $73.4 million to $532.7 million compared to $459.3 million in the prior year period. Gross margin rate increased 400 basis points to 61.6% from 57.6% in the same period last year, primarily due to the following factors:

- the net benefit from IEEPA tariff refunds, which favorably impacted gross margin by 490 basis points;
- the impact of selective price increases on certain products implemented during the first quarter of 2026, which favorably impacted gross margin by 40 basis points;
- favorable foreign currency exchange rates, which favorably impacted gross margin by 40 basis points;
- lower product costs, which favorably impacted gross margin by 30 basis points; and
- other impacts, which favorably impacted gross margin by 10 basis points.

These were partially offset by:

- higher tariff costs, which unfavorably impacted gross margin by 190 basis points; and
- unfavorable sales mix, which unfavorably impacted gross margin by 20 basis points.

### Selling, General, and Administrative Expenses

SG&A expenses increased by $51.2 million, or 14%, to $426.8 million for the six months ended July 4, 2026 compared to $375.6 million for the six months ended June 28, 2025. As a percentage of net sales, SG&A expenses increased by 230 basis points to 49.4% for the six months ended July 4, 2026 compared to 47.1% for the six months ended June 28, 2025. The increase in SG&A expenses was primarily driven by:

- an increase in distribution and fulfillment expenses of $15.1 million (increasing SG&A as a percent of sales by 50 basis points) mainly due to higher outbound freight, online marketplace fees, and third-party logistics fees;
- an increase in marketing and advertising expenses of $13.3 million, primarily driven by a shift in the timing of our brand campaign into the second quarter of 2026 relative to last year’s brand campaign in the fourth quarter of 2025 (increasing SG&A as a percent of sales by 90 basis points);
- an increase in general and administrative expenses of $11.5 million (increasing SG&A as a percent of sales by 70 basis points) mainly due to growth investments in facilities and technology, higher professional fees, as well as asset impairments in the current year period;
- an increase in employee compensation and benefits expenses of $8.5 million (no impact on SG&A as a percent of sales) primarily due to investments in headcount and higher incentive compensation, partially offset by lower non-cash stock-based compensation expense;
- an increase in depreciation and amortization expense of $1.8 million (increasing SG&A as a percent of sales by 10 basis points) primarily related to our continued capital investments; and
- the impact of a $0.9 million recall reserve adjustment in the current year period (increasing SG&A as a percent of sales by 10 basis points).

### Non-Operating Expenses

Interest income, net was $0.5 million for the six months ended July 4, 2026, compared to $0.6 million for the six months ended June 28, 2025. The change versus the prior year quarter was primarily due to a decrease in interest income, partially offset by the $2.9 million interest income related to IEEPA tariff refunds.

Other income was $0.1 million for the six months ended July 4, 2026, compared to other income of $7.1 million for the six months ended June 28, 2025. The change versus the prior year period was primarily due to higher foreign currency losses on intercompany balances.

Income tax expense was $25.4 million for the six months ended July 4, 2026, compared to $23.7 million for the six months ended June 28, 2025. The increase in income tax expense was primarily due to higher income before income taxes. The effective tax rate was 23.8% for the six months ended July 4, 2026 compared to 25.9% for the six months ended June 28, 2025. The lower effective tax rate was primarily due to the impact of a discrete tax benefit related to stock-based compensation in the six months ended July 4, 2026.

### Liquidity and Capital Resources

### General

Our cash requirements have principally been for working capital purposes, long-term debt repayments, and capital expenditures. Our plans for cash may periodically include repurchasing shares of our common stock pursuant to our Share Repurchase Program described below. We fund our working capital, capital investments, and other cash needs from cash flows from operating activities, cash on hand, or borrowings available under our revolving credit facility (the “Revolving Credit Facility”). We believe that our current operating performance, operating plan, strong cash position, and borrowings available under our Revolving Credit Facility will be sufficient to satisfy our liquidity needs, cash requirements, and plans for cash for at least the next twelve months and foreseeable future.

### Current Liquidity

As of July 4, 2026, we had a cash balance of $59.8 million, working capital (excluding cash) of $247.6 million and $270.0 million of borrowings available under the Revolving Credit Facility.

### Credit Facility

Our Credit Facility provides for a $300.0 million Revolving Credit Facility and an $84.4 million term loan (the “Term Loan A”).

At July 4, 2026, we had $71.7 million principal amount of indebtedness outstanding under the Term Loan A under the Credit Facility and $30.0 million of outstanding borrowings under the Revolving Credit Facility. The weighted-average interest rate for borrowings under the Term Loan A and the Revolving Credit Facility was 5.53% and 5.48%, respectively, during the three months ended July 4, 2026.

The Credit Facility requires us to comply with certain covenants, including financial covenants regarding our total net leverage ratio and interest coverage ratio. Fluctuations in these ratios may increase our interest expense. Failure to comply with these covenants and certain other provisions of the Credit Facility, or the occurrence of a change of control, could result in an event of default and an acceleration of our obligations under the Credit Facility or other indebtedness that we may incur in the future. At July 4, 2026, we were in compliance with all covenants and expect to remain in compliance with all covenants under the Credit Facility.

### Share Repurchase Program

In 2024, our Board of Directors authorized the repurchase of up to $300.0 million of YETI’s common stock (the “Share Repurchase Program”), excluding fees, commissions, and excise tax due under the Inflation Reduction Act of 2022. Repurchases under the Share Repurchase Program may be made from time to time at prevailing prices in the open market, through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. Repurchases under the Share Repurchase Program may also be made pursuant to a plan adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing, manner, price, and actual amount of share repurchases are determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital allocation needs and opportunities, and corporate and regulatory considerations. YETI has no obligation to repurchase any amount of our common stock, and such repurchases may be suspended or discontinued at any time. All shares repurchased under the Share Repurchase Program are held as treasury stock.

During 2024, we entered into two separate accelerated share repurchase agreements, which resulted in our repurchase of approximately 5.1 million shares of YETI’s common stock for an aggregate of $200.0 million. In 2025, our Board of Directors approved a $350.0 million increase to the Share Repurchase Program. We subsequently repurchased approximately 8.0 million shares of YETI’s common stock on the open market for approximately $300.0 million during 2025.

In May 2026, our Board of Directors approved an approximately $348.0 million increase to the Share Repurchase Program, resulting in $500.0 million remaining available as of May 14, 2026. During the second quarter of 2026, we repurchased 2.8 million shares of YETI’s common stock on the open market for approximately $130.0 million, at an average repurchase price of $46.47 per share. As of July 4, 2026, approximately $370.0 million remained available for repurchases under the Share Repurchase Program See Note 9-Stockholders’ Equity of the Consolidated Financial Statements for additional information about the Share Repurchase Program.

### Material Cash Requirements

There have been no material changes in our material cash requirements for contractual and other obligations compared to the disclosures included under “Material Cash Requirements” included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended January 3, 2026 filed with the U.S. Securities and Exchange Commission (the “SEC”).

### Cash Flows from Operating, Investing, and Financing Activities

The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated (in thousands):

| Cash flows provided by (used in): | Six Months Ended July 4, 2026 | June 28, 2025 |
| --- | ---: | ---: |
| Operating activities | $29,801 | $(19,101) |
| Investing activities | $(39,953) | $(31,086) |
| Financing activities | $(116,111) | $(40,368) |

#### Operating Activities

Cash flows related to operating activities are dependent on net income, non-cash adjustments to net income, and changes in working capital. The increase in cash provided by operating activities during the six months ended July 4, 2026 compared to cash used in operating activities during the six months ended June 28, 2025 is primarily due to a favorable impact from changes in working capital and an increase in net income, excluding non-cash expenses.

#### Investing Activities

The increase in cash used in investing activities during the six months ended July 4, 2026 was primarily due to higher purchases of property and equipment, and higher purchases of intangible assets.

#### Financing Activities

The increase in cash used in financing activities during the six months ended July 4, 2026 was primarily due to higher repurchases of common stock and higher taxes paid for the net share settlement of stock-based awards, partially offset by borrowings under our Revolving Credit Facility.

### Recent Accounting Pronouncements

For a description of recently issued and adopted accounting pronouncements, including the respective dates of adoption and expected effects on our results of operations and financial condition, see “Recently Adopted Accounting Pronouncements” in Note 1 of the Unaudited Condensed Consolidated Financial Statements.

### Critical Accounting Policies and Estimates

Our unaudited condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates. A discussion of the accounting policies that management considers critical in that they involve significant management judgments and assumptions require estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results is included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended January 3, 2026 filed with the SEC. There have been no significant changes to these critical accounting policies.

## Market risk

As filed, 269 characters.

There have been no material changes to our market risk exposures or management of market risk from those disclosed in Quantitative and Qualitative Disclosures About Market Risk included under Item 7A in our Annual Report on Form 10-K for the year ended January 3, 2026.

## Controls and procedures

As filed, 2,675 characters.

### Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (“Exchange Act”)) are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and to ensure that information required to be disclosed is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding disclosures. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of July 4, 2026.

### Changes in Internal Control over Financial Reporting

During the quarter ended July 4, 2026, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

### Inherent Limitations in Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures, or our internal controls, will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty and that breakdowns can occur because of simple error or mistake or fraud. Additionally, controls can be circumvented by individuals or groups of persons or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements in our public reports due to error or fraud may occur and not be detected.

## Risk factors

As filed, 154 characters.

There have been no material changes to the risk factors contained in Part I, Item 1A of our Annual Report on Form 10-K for the year ended January 3, 2026.

Filed Aug 13, 2026.
Source: SEC EDGAR, the filing index for accession 0001670592-26-000040. Last ingested by Listed: Nov 5, 2026, 14:04 ET. No prices; not investment advice.