YETI reports Q2 2026 revenue growth of 9% amid margin pressures

YETI Holdings Inc. reported a 9% year-over-year increase in revenue for the second quarter of 2026, though rising costs weighed on profit margins, according to preliminary slides seen by Investing.com.

The outdoor gear and drinkware company, known for its premium coolers and insulated bottles, posted total revenue of $345 million for the quarter, up from $316 million in the same period a year earlier. The growth was driven by sustained demand in its core product lines, including coolers and accessories, as well as expansion in international markets.

Gross margin declined to 48.2% from 52.7% in Q2 2025, reflecting higher raw material costs, logistics expenses, and labor wages. Operating income fell to $68 million from $89 million in the prior-year quarter, while net income dropped to $45 million from $61 million.

YETI attributed the cost pressures to persistent supply chain disruptions, inflationary pressures on key inputs such as steel and resin, and increased competition in the premium outdoor gear segment. The company noted that pricing strategies implemented earlier in the year had partially offset some of the margin compression.

Despite the revenue growth, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 12% to $92 million. Free cash flow also decreased to $38 million from $47 million in Q2 2025, reflecting higher capital expenditures and working capital needs.

YETI maintained its full-year 2026 guidance, reaffirming revenue growth of 7-9% and adjusted EBITDA of $380 million to $400 million. The company stated that cost management initiatives, including operational efficiencies and selective price adjustments, are expected to mitigate some of the margin pressures in the second half of the year.

Shares of YETI were down 3.2% in pre-market trading following the release of the preliminary results. The company is scheduled to release its official earnings report on August 7, 2026.