YETI Raises Full-Year Sales Growth to 7%-8% and EPS to $2.89 After 8.3% Q1 Revenue Increase
YETI•YETI lifted full-year net sales growth guidance to 7%-8% from 6%-8% and raised adjusted EPS to $2.83-$2.89 from $2.77-$2.83. It also raised operating margin guidance to 14.6%, set free cash flow at $200-$225 million and capex at $60-$70 million after reporting Q1 EPS of $0.26 on 8.3% revenue growth.
1. Guidance Raised on Accelerated Growth Targets
YETI tightened its fiscal 2026 net sales growth guidance to a 7%-8% range from the prior 6%-8% outlook and lifted its adjusted EPS forecast to $2.83-$2.89, up from $2.77-$2.83. The company also increased its adjusted operating margin target to 14.6% from 14.4%, set free cash flow goals at $200-$225 million and projected capital expenditures of $60-$70 million.
2. First-Quarter Results Surpass Expectations
In Q1, YETI delivered adjusted EPS of $0.26, well above consensus of approximately $0.17, and achieved 8.3% revenue growth, outpacing estimates near 6%. Adjusted gross margin held at 55.3%, beating forecasts by roughly 100 basis points, while operating margin reached 7%, significantly above the 4.5%-5% range analysts anticipated.
3. Strong Wholesale and Product Performance
Wholesale revenue surged 18.5%, driven by expanded retail partnerships and seasonal demand, while Coolers & Equipment and Drinkware segments both exceeded sales projections. Direct-to-consumer growth lagged at 0.3%, reflecting a decline in global corporate sales bookings.
4. Outlook and Potential Catalysts
With raised guidance in place, YETI highlighted that operating margin targets do not yet include potential tariff refunds, suggesting further upside. Management noted ongoing geopolitical tensions and commodity cost pressures as risks, but free cash flow and disciplined capex planning support a solid financial profile.
