Abstract
YETI Holdings Inc. will report fourth-quarter results on February 19, 2026 Pre-Market; our preview synthesizes last quarter’s delivery, margin and earnings trends with current-quarter revenue, EBIT and EPS forecasts and recent commentary to frame likely beats and watchpoints.
Market Forecast
Consensus for the current quarter points to revenue of $582.46 million, implying 5.52% year-over-year growth, with forecast EBIT of $91.86 million and estimated EPS of $0.884; year-over-year trends embedded in forecasts suggest modest margin compression. Management’s near-term outlook implies balanced growth across direct-to-consumer and wholesale with gross profit margin stability and EPS pressured by higher opex; forecast YoY for revenue is 5.52%, for EBIT is -12.46%, and for EPS is -4.73%.
The core business continues to be anchored by premium coolers, drinkware and accessories, with a focus on product mix, pricing discipline and channel execution. The most promising segment remains direct-to-consumer at $288.72 million last quarter, driven by engagement and mix upgrades, while wholesale delivered $199.05 million; DTC’s scale and higher margin profile position it for outperformance.
Last Quarter Review
In the previous quarter, YETI Holdings Inc. generated $487.77 million of revenue, with a gross profit margin of 55.87%, GAAP net profit attributable to shareholders of $39.40 million, a net profit margin of 8.08%, and adjusted EPS of $0.61, reflecting a 1.95% year-over-year revenue increase and a 14.09% decline in EPS.
The quarter’s key highlight was resilient gross margin performance, reflecting ongoing product cost tailwinds and disciplined pricing despite a softer operating environment. By business line, direct-to-consumer produced $288.72 million and wholesale delivered $199.05 million, underscoring the continued strength of the direct channel mix.
Current Quarter Outlook (with major analytical insights)
Main business momentum and mix implications
Market expectations and company forecasts imply mid-single-digit revenue growth this quarter to $582.46 million, with mix favoring core drinkware and coolers supported by product innovation and promotional efficiency. Stability in gross profit margin is anticipated as cost of goods sold benefits and pricing/mix tailwinds persist, though operating expense normalization could limit flow-through to EPS. The prior quarter’s 55.87% gross margin offers a constructive base; holding close to that level would allow EBIT of $91.86 million to translate into solid operating profitability even amid modest top-line growth.
Direct-to-consumer as the growth and margin lever
Direct-to-consumer remains the largest and most accretive revenue stream, delivering $288.72 million last quarter and a higher contribution margin than wholesale due to improved pricing power and richer mix. Continued investment in digital, personalization, and owned retail should support better conversion in peak seasonal categories, while constrained promotional intensity aims to protect gross margin. With engagement-based launches and targeted assortment shifts, DTC growth can offset wholesale variability and support EPS resilience despite forecast year-over-year declines.
Wholesale normalization and inventory discipline
Wholesale delivered $199.05 million last quarter, reflecting a more normalized replenishment cadence with key retail partners. While wholesale is lower margin than direct, predictable order patterns can smooth production and reduce logistics volatility, which may help sustain gross margin near the recent 55.87% level. Any incremental wholesale softness would primarily weigh on operating leverage; conversely, steadier replenishment or selective door expansion could be an upside swing factor to the EBIT forecast.
Key factors impacting stock performance this quarter
- Margin durability versus operating expense growth: Forecasts imply EBIT down 12.46% year over year and EPS down 4.73%, pointing to opex pressure; investors will scrutinize whether gross margin can remain near the mid-50s while SG&A growth moderates.
- Channel mix: A higher direct-to-consumer share typically enhances profitability; any step-up in owned-channel penetration may partially offset opex drag and lead to EPS upside versus the $0.884 estimate.
- Inventory and working capital: Retail inventory normalization and disciplined buys can reduce clearance risk and protect price integrity, keeping the net profit margin trending close to recent levels.
Analyst Opinions
Across recent previews, the majority view skews constructive, emphasizing the sustainability of gross margin improvement and the strategic benefits of a growing direct-to-consumer mix even as EBIT and EPS face near-term pressure from operating expense investments. Analysts highlighting upside argue that stable mid-50s gross margins, normalized freight and input costs, and improving mix can deliver revenue in line with the $582.46 million estimate and set a floor under earnings. Some caution that opex discipline will be key to re-accelerating EPS growth, but prevailing commentary expects YETI Holdings Inc. to meet or slightly exceed top-line targets while guiding to continued margin stewardship into the next fiscal period.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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