YETI Holdings, Inc. (YETI)

How it makes money

About 60% of net sales in fiscal 2025 came through YETI's own direct-to-consumer channels — its website and retail stores — where it keeps the full retail margin, and about 40% through wholesale to outside retailers at a lower per-unit price. Because products are made by contract manufacturers rather than YETI itself, new U.S. tariffs on imports, particularly from China, flow straight into cost of goods sold; the company said tariffs would add roughly $80 million to 2026 costs versus 2024.

Revenue by segment

YETI built a premium brand that lets it charge well above mass-market coolers and tumblers, backed by a loyal outdoor, hunting and fishing customer base. The company itself warns that maintaining that brand is not automatic: negative publicity can spread quickly on social media, and the category has attracted lower-priced imitators that erode the price gap YETI depends on.

YETI sells discretionary, premium-priced outdoor gear that households can defer buying or trade down from when budgets tighten. In fiscal 2025, U.S. Drinkware sales already declined amid what the company described as a promotional market environment and cautious wholesale buying, showing how quickly a softer consumer can show up in results.

Key risks

• China tariffs — New U.S. tariffs on Chinese imports, in some cases as high as 145%, materially pressured 2025 margins, and the company expects tariffs to add roughly $80 million to cost of goods in 2026 versus 2024.
• Reliance on third-party overseas manufacturing — YETI relies on contract manufacturers, many located outside the United States, exposing it to raw material, labor and transportation cost swings and to disruption from geopolitical tensions or trade policy changes, even as it works to diversify its manufacturing base.
• Dependence on brand strength — The company states that maintaining and strengthening its brand is critical to attracting customers and sustaining demand, and that negative publicity can spread quickly through social media and erode brand equity.
• Promotional, cautious retail environment — Drinkware, the larger product category, saw U.S. sales decline in fiscal 2025 due to a promotional market environment and cautious wholesale buying, showing exposure to discretionary spending pressure.