Yeti Cuts 2026 Sales Growth Outlook to About 6% as Consumers Turn Cautious
Yeti lowered its fiscal 2026 adjusted sales growth forecast to about 6%, from 7% to 8%, and trimmed its adjusted earnings guidance, citing a more cautious consumer through the rest of the year. The company's direct-to-consumer sales fell in the quarter, a weak spot for a brand that has leaned on U.S. demand, so the cut is a signal to investors in consumer discretionary names.
The Austin, Texas-based cooler and drinkware maker said it now expects adjusted sales growth of about 6% for 2026, down from its earlier range of 7% to 8%. The company tied the reduction to a more cautious consumer environment for the remainder of the year, according to its third-quarter release issued on November 12.
Quarterly results
Profit measures were stronger than sales. Adjusted EPS rose 49% to $0.91, beating estimates of $0.84. Strong operating discipline drove margin expansion, with profits growing significantly faster than sales.
Where the growth came from
Drinkware and international markets carried the quarter, while direct sales through the company's own channels weakened. Drinkware sales increased 8%, international sales rose 19%, and wholesale sales climbed 19%, offsetting a 6% decline in direct-to-consumer sales. The company also said direct-to-consumer sales decreased 6% to $272.2 million on a reported basis.
U.S. results were softer than the international business. One summary of the release stated that international sales grew 19%, and US sales rose 1%.
Updated guidance
The company's revised outlook covers several lines:
- Adjusted sales growth of about 6%, versus 7% to 8% previously.
Yeti said it expects the consumer backdrop to weigh on fourth-quarter demand. The company said it expects a cautious consumer environment to pressure fourth-quarter demand.
Why it matters for U.S. investors
The cut matters beyond one brand. Yeti is a consumer discretionary name whose results are often read as a gauge of discretionary spending on premium outdoor and home goods. Its weaker U.S. direct channel and its reliance on retail partners for growth also show how pricing and promotion pressure in U.S. drinkware can affect a company's sales mix. The company did not specify how much of the guidance reduction came from the U.S. market alone.
Sources
- Yeti: Q3 Earnings Snapshot wtop.com
- Outdoor products maker Yeti misses Q3 sales estimates; cuts FY forecast - YETI News rallies.ai
- YETI Reports Third Quarter 2026 Results manilatimes.net
- YETI Reports Third Quarter 2026 Results stocktitan.net
- YETI Reports Third Quarter 2026 Results globenewswire.com
Written with AI assistance on Nov 12, 7:02 AM ET from the reports listed under Sources, and reviewed by our editor after publication. Before it was published, every figure was checked against those reports, and passages with figures that could not be found there were left out. It can still contain mistakes: read the sources before acting on anything. How we review. Not investment advice.