YETI’s Coolers & Equipment business grew eight times faster than Drinkware during the second quarter of 2026, highlighting the company’s increasing diversification beyond the drinkware products that have historically been one of its most visible categories.
Coolers & Equipment sales increased 16% year-over-year to $232.4 million, compared with 2% growth in Drinkware sales to $241.4 million. Growth in Coolers & Equipment was driven by strong performance across bags, soft coolers, cases and storage, and outdoor living products, while Drinkware growth was primarily supported by international markets and continued product innovation.
The faster growth has brought Coolers & Equipment close to Drinkware in quarterly revenue. The two categories generated $232.4 million and $241.4 million, respectively, meaning Coolers & Equipment represented nearly as much sales as Drinkware during the period.
Total second-quarter sales increased 9% to $483.9 million. Wholesale revenue increased 10% to $218 million, while direct-to-consumer revenue increased 7% to $265.9 million, supported by strong Amazon Marketplace performance and growth across YETI websites and retail stores.
International markets were another major growth contributor. International sales increased 19% to $92.9 million, led by strong performance in Europe and Australia along with growth in Canada and Japan. U.S. sales increased 6% to approximately $391 million, primarily because of Coolers & Equipment demand.
Profitability also increased sharply, although reported results benefited significantly from tariff refunds. Gross profit increased 25% to $322.5 million and gross margin expanded 890 basis points to 66.7%. The improvement included 780 basis points of net tariff benefit and 110 basis points of favorable operational drivers such as pricing discipline and product cost management.
Adjusted gross profit increased 12% to $288.1 million, while adjusted gross margin expanded 170 basis points to 59.5%. On an adjusted basis, the quarter included 110 basis points of favorable operational improvement and a 60-basis-point net tariff benefit.
Operating income increased 51% to $93.5 million, while net income increased 39% to $71.3 million. Diluted EPS increased 54% to $0.94, including an approximately $0.40 net tariff benefit. Adjusted EPS increased 2% to $0.67.
YETI also repurchased 2.8 million shares for $130 million during Q2. Approximately $370 million remained available under its existing $500 million share repurchase authorization at the end of the quarter.
For 2026, YETI maintained its sales growth outlook of 7% to 8% while increasing its expected adjusted operating income margin to 14.9% from 14.6%. Adjusted EPS guidance increased to $2.94 to $3 from a previous range of $2.83 to $2.89.
KEY QUOTES:
“YETI delivered a strong second quarter, with 9% top-line growth, and stronger-than-expected profitability. We also completed $130 million in share repurchases, reflecting the durability of our business model and the cash-generating strength of our operating platform. Our results demonstrate broad-based execution across categories, channels, and geographies, powered by the YETI brand and the expanding reach of our product portfolio. The work we’ve done over the past several years to build a more diversified, more balanced, and more repeatable growth company is showing up in the quality and consistency of our results.”
“What stood out in the quarter was the strength of brand momentum and innovation across our product platforms. Our FOUR Letters brand campaign deepened awareness and expanded the brand’s reach to new audiences, while our community activations reinforced our localized approach to building consumer engagement and trust. In an uneven consumer environment, demand across our product platforms remained strong, driven by the durability, design, and performance that differentiate YETI. We also saw continued progress across our omni-channel model, including strong wholesale sell-through, healthy DTC demand and improving trends in Corporate Sales. As expected, International reaccelerated in the quarter, as we continue unlocking a compelling long-term growth opportunity, with Europe, Asia, Australia and New Zealand validating that our brand can travel and our product platforms can translate across markets.”
Matt Reintjes, Chair of the Board and CEO of YETI
