YETI Holdings, Inc. reported first-quarter 2025 net sales increased 3% to $351.1 million, with international sales growing 22% to $79.9 million. However, U.S. sales decreased 2% to $271.3 million, and adjusted net income per diluted share declined 9% to $0.31.
The company announced a significant update to its full-year 2025 outlook, primarily in response to tariff impacts and anticipated inventory supply disruptions from accelerated supply chain diversification. YETI now expects full-year sales growth between 1% and 4%, a reduction from the prior 5% to 7% range, with supply disruptions accounting for approximately 300 basis points of this reduction.
Gross margins are projected to decline sharply to approximately 54%, a 450 basis point drop from both the prior year and the original outlook, mainly due to the net impact of tariffs. Adjusted earnings per diluted share are now projected between $1.96 and $2.02, a substantial reduction from the previous outlook of $2.90 to $2.95 and the $2.73 achieved in 2024.
YETI is accelerating its supply chain diversification efforts, targeting 90% of U.S. drinkware capacity to be located outside of China by the end of 2025. This initiative aims to reduce reliance on China, with less than 5% of total cost of goods for the U.S. market expected to originate from China on a go-forward basis starting in 2026.
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