GET DAILY SIGNALSYETI Holdings (YETI) Delivers Profit Beat but Trims Full-Year Outlook
Key Takeaways
- YETI reported fiscal third quarter 2026 net sales of $509.4 million, up 4% from $487.8 million a year earlier.
- Adjusted earnings per share (EPS) climbed 49% to $0.91, topping the $0.85 consensus estimate.
- Reported revenue fell short of the roughly $523.6 million Wall Street had expected.
- Gross margin expanded 180 basis points to 57.7%, while adjusted operating margin reached 17.4%.
- Wholesale sales rose 19%, but direct-to-consumer (DTC) sales declined, and international growth of 19% outpaced a modest 1% U.S. gain.
- Management trimmed its full-year outlook, citing a more cautious consumer spending environment.
Why This Quarter Matters
YETI Holdings' third quarter fiscal 2026 results offer investors a timely read on discretionary consumer demand heading into the holiday season. The company has leaned on international expansion and a broadening product lineup — spanning drinkware, coolers, bags, and cookware — to sustain growth as U.S. retail conditions soften. This report was particularly important because it tested whether YETI could keep expanding profit margins even as revenue momentum cooled and shoppers grew more price-sensitive. With management updating its full-year guidance alongside the release, the quarter also reset expectations for the remainder of the fiscal year and offered early signals on how the brand is navigating a tougher spending backdrop. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Numbers
For the third quarter ended October 3, 2026, YETI reported net sales of $509.4 million, a 4% increase from $487.8 million in the prior-year period. Adjusted net sales rose 6% to $517.9 million. Net income increased 13% to $44.4 million, and diluted earnings per share (EPS) advanced 25% to $0.60 on a Generally Accepted Accounting Principles (GAAP) basis.
On an adjusted basis, which excludes certain items including adjustments related to the company's 2023 voluntary recalls, EPS climbed 49% to $0.91 — above the $0.85 consensus estimate. However, reported revenue of $509.4 million came in below the roughly $523.6 million analysts had projected.
Gross margin expanded 180 basis points to 57.7%, and adjusted operating margin reached 17.4%, up 370 basis points year over year. Wholesale sales grew 19% to $237.3 million, while direct-to-consumer (DTC) sales declined. Drinkware sales rose 8% to $284.0 million, while Coolers & Equipment sales were roughly flat at $215.6 million. International sales increased 19% to $119.1 million, compared with a 1% gain in U.S. sales to $390.3 million.
How the Market Reacted
Shares of YETI Holdings fell following the report, with the stock trading lower as investors weighed a profit beat against a revenue shortfall and a reduced full-year forecast. The decline reflected concern that cautious U.S. and Canadian consumer spending could persist through the fourth quarter, even as margins improved. Management pointed to uneven domestic demand and bargain-hunting behavior among shoppers, factors that pressured the company's guidance despite solid wholesale momentum and continued international strength. The mixed print underscored how a strong earnings-per-share result alone was not enough to offset softer top-line signals and a more conservative outlook.
Looking Ahead: Guidance and What to Watch
YETI now expects full-year adjusted sales growth of approximately 6%, down from its prior outlook of 7% to 8%, reflecting a more cautious consumer environment. The company also narrowed its adjusted EPS forecast to a range of $2.90 to $2.95, from $2.94 to $3.00 previously, while reaffirming its free cash flow outlook of $200 million to $225 million and capital expenditures of $60 million to $70 million.
Investors will want to watch how the drinkware category performs, since management noted that stock-keeping unit (SKU) concentration pressure had a roughly 500 basis point impact on drinkware growth in the quarter, with similar pressure expected in the fourth quarter.
Direct-to-consumer trends also remain a key monitor, given weakness in U.S. e-commerce and a shift in Amazon Prime Day timing. International growth, led by Europe, Australia, and Japan, is a bright spot but carries its own risks, particularly softer demand in Canada.
Finally, margin expansion driven by pricing, lower freight costs, and the company's Project Upcycle productivity program will be worth tracking. Sustained buybacks and a more normalized drinkware base entering 2027 could shape how investors assess the company's longer-term earnings power. From what I see, these factors will be central to the story next year.
Exploring Tickeron’s AI Tools for My Research
In my own work, I often turn to Tickeron’s AI Trading Bots to test automated strategies on holdings like this one. The platform lets me run scenarios across different market conditions and see how signals perform over time. It has become a useful part of my routine when evaluating consumer stocks.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
YETI in downward trend: price may drop because broke its higher Bollinger Band on November 04, 2026
YETI broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 38 similar instances where the stock broke above the upper band. In 29 of the 38 cases the stock fell afterwards. This puts the odds of success at 76%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for YETI moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In 19 of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at 70%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 40 of 56 cases where YETI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 71%.
The Momentum Indicator moved below the 0 level on November 11, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on YETI as a result. In 71 of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for YETI turned negative on November 11, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 34 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where YETI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
Bullish Trend Analysis
YETI moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for YETI crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 73%.
Following a +4.59% 3-day Advance, the price is estimated to grow further. Considering data from situations where YETI advanced for three days, in 240 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 144 of 215 cases where YETI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 67%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 38 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 42 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. YETI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.385) is normal, around the industry mean (1.790). P/E Ratio (19.468) is within average values for comparable stocks, (1.566). Projected Growth (PEG Ratio) (0.210) is also within normal values, averaging (1.411). Dividend Yield (0.000) settles around the average of (0.029) among similar stocks. P/S Ratio (1.633) is also within normal values, averaging (4.604).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. YETI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
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