Yeti Reports Q3 Margin Contraction Amid Tariff Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: NASDAQ.COM
- Margin Decline: Yeti's gross margin fell from 58.2% to 55.9% in Q3, primarily due to tariffs and product mix changes, indicating pressure on profitability that could affect investor confidence moving forward.
- International Expansion Potential: Despite challenges, Yeti's international sales grew by 14% in Q3, now representing 20% of total revenue, highlighting the company's growth potential in global markets, particularly in Asia.
- Supply Chain Diversification: Management plans to accelerate its exit from Chinese manufacturing, projecting that by 2026, exposure to China will be less than 5% of costs, aiming to mitigate tariff impacts and enhance supply chain flexibility.
- Stock Buyback Program: Yeti repurchased $150 million of stock in Q3 2025 and raised its full-year buyback target from $200 million to $300 million, reflecting confidence in future cash flows and commitment to shareholders.
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Analyst Views on YETI
Wall Street analysts forecast YETI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for YETI is 42.50 USD with a low forecast of 35.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
4 Buy
9 Hold
0 Sell
Moderate Buy
Current: 45.710
Low
35.00
Averages
42.50
High
70.00
Current: 45.710
Low
35.00
Averages
42.50
High
70.00
About YETI
YETI Holdings, Inc. is a designer, retailer, and distributor of outdoor products. The Company's product portfolio consists of three categories: Coolers & Equipment; Drinkware, and Other. Its Coolers & Equipment family is comprised of hard coolers, soft coolers, cargo, bags, outdoor living, and associated accessories. Its hard cooler category includes YETI Tundra, YETI Roadie, YETI V Series hard coolers, YETI TANK ice, and YETI Silo 6G water cooler. The Hopper soft cooler product line includes Hopper M15 Soft Cooler, Hopper M12 Soft Backpack Cooler, Hopper M30 Soft Cooler, Hopper Flip Soft Cooler, and Daytrip Lunch Bag, among others. Its Drinkware product line consists of Rambler Colsters, Rambler Lowball, Rambler Wine Tumblers, Rambler Stackable Pints, Rambler Mugs, Rambler Tumblers, Rambler Straw Mugs and Cups, Rambler Bottles, Rambler Jugs, and Yonder Water Bottles. The Other category offers an array of apparel and gear, such as hats, shirts, bottle openers and ice substitutes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Yeti Holdings Stock Surges 44% Despite Margin Decline
- Stock Performance: Yeti Holdings' stock has surged 44% since the Q3 2025 earnings report, currently trading around $48 per share, nearing levels not seen since December 2023, indicating strong market confidence in its growth prospects.
- Margin Decline: Despite a drop in gross margin from 58.2% to 55.9% and adjusted operating margins at 13.7%, the brand retains significant pricing power, reflecting its competitive edge in the premium consumer goods market.
- International Sales Growth: Yeti's international sales grew by 14% in Q3 2025, now representing 20% of total revenue, a substantial increase from 2% in 2018, highlighting its potential for global market expansion, particularly in Asia.
- Stock Buyback Plan: Yeti repurchased $150 million in stock in Q3 2025 and raised its full-year buyback target from $200 million to $300 million, demonstrating management's confidence in future cash flow and shareholder returns.
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