YETI Stock Jumps on Q1 Earnings Beat and Raises Full-Year Outlook

Shares of YETI Holdings Inc. NYSE: YETI jumped Thursday after the company delivered a first-quarter earnings beat and raised its full-year outlook, giving investors renewed confidence after a rocky few months for the stock.

The outdoor and lifestyle products company has had a strong performance over the past year, with shares up more than 25%. However, after hitting a 52-week high in January, the stock pulled back sharply. In the past three months, shares have fallen 15%. After the latest earnings report, however, sentiment seems to be changing again.

Strong Demand Drives Earnings to Earn a Beat

YETI saw strong growth across all categories and channels in the first quarter. Adjusted earnings per share of 26 cents fell 16% from 31 cents per share in the year-ago quarter but topped analyst expectations by 9 cents. Revenue of $380 million was up more than 8% year-over-year and exceeded expectations by nearly $6 billion.

During the company's call, CEO Matt Reintjes highlighted the improvement in demand and performance during the quarter. “The demand is very different, our platforms are growing efficiently. Our operating system continues to work hard in a dynamic and often unpredictable environment,” he said.

Demand was strongest in US consumer sales across Coolers & Equipment and Drinkware. Coolers & Equipment posted double-digit sales growth, while Drinkware delivered moderate single-digit growth. Global wholesale sales were also strong, with the channel growing by 19%. Corporate sales were soft due to the timing of orders and the slow global business environment.

YETI Raises Full-Year Outlook

The company raised its outlook for the year, citing strong first-quarter results and an improved outlook for the remainder of 2026. “We entered the second quarter with global demand trends showing strength, continuing the momentum from the last two quarters,” Reintjes said.

YETI said it now expects a 2026 revenue growth forecast of more than 7% to 8% year-over-year, up from its previous outlook of more than 6% to 8%. The company also raised its adjusted operating margin forecast to 14.6%, from 14.4%, and increased its adjusted diluted earnings per share (EPS) to $2.83 from $2.89. That represents expected year-over-year growth of 14% to 17%. Previously, the company had forecast adjusted EPS of $2.77 to $2.83, representing growth of more than 12% to 14%.

Looking ahead, international markets remain the company's biggest long-term opportunity, Reintjes said, adding that while international sales are expected to account for more than 23% of full-year sales by 2026, “we're just starting to unlock it.”

While demand trends remain strong, the company said it continues to navigate costs and energy costs, which are expected to squeeze margins during the first half of the year. However, strategies including pricing and product mix are helping to offset some of the impact, and YETI expects margins to improve in the second quarter.

Can YETI Stock Recover Momentum?

Shares of YETI have been steadily rising for most of the past 12 months as the company delivered multiple quarters of beat earnings. The shares, which were trading below $30 in May 2025, rose to a 52-week intraday high of $51 in mid-January.

However, after reaching that high, the stock began to pull back. The trend accelerated following the company's fourth-quarter earnings report on February 19, which sent shares down nearly 5%. Although YETI delivered better-than-expected revenue and earnings, investors appear to be intimidated by the company's outlook and the potential impact of price cuts.

Ahead of the Q1 earnings report, shares returned to the $38 range. However, sentiment changed after the latest earnings release, with shares up nearly 6% afterward.

Analysts Are Always Too Bullish

Analyst performance over the past few months has been mixed, although overall sentiment remains positive. YETI currently has a consensus rating of Moderate Buy based on nine Buy ratings and seven Hold ratings.

The 12-month consensus price target is $48.50, which means about 20% upside from current levels, with analyst price targets ranging from $37 to $60.

Some investors may also see an opportunity in the stock's valuation following the recent pullback. YETI currently trades at a price-to-earnings (P/E) ratio of about 20X, while the leisure and entertainment products industry trades at a P/E ratio of about 36X. YETI can be difficult to compare directly to other public companies, as there are few public market peers with a similar product mix.

While concerns about tariffs and global energy prices remain, the company's latest earnings report suggested that demand trends are holding steady, while long-term prospects, particularly internationally, appear strong. If YETI can continue to deliver steady growth while improving margins in the second half of the year, some investors may see the recent selloff as overblown.

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