By Connor Hart

Yeti Holdings logged higher profit and sales in the fourth quarter, but said it expects tariffs to remain a drag in the coming year.

The company, known for its insulated drinkware, on Thursday posted a profit of $58.2 million, or 74 cents a share, for its three months ended Jan. 3. That compares with a profit of $53.2 million, or 63 cents a share, in last year's comparable period.

Stripping out certain one-time items, including some higher tariff costs, earnings were 92 cents a share. Analysts polled by FactSet expected adjusted earnings of 88 cents a share.

Sales rose 6.8% to $583.7 million, topping Wall Street models for $581.9 million.

Drinkware sales increased 6.1% to $380 million, which the company attributed primarily to growth in international regions. Coolers and equipment sales were up 6.7% to $192.3 million, largely due to strong performance in soft coolers, bags and cargo.

Chief Executive Matt Reintjes said the company is benefiting from solid demand, and that the business is more balanced and resilient thanks to efforts to strengthen its brand globally and expand internationally.

"Behind the scenes, the supply chain work we did in 2025 sets us up extremely well for the long term," Reintjes said. "We've built a far more flexible, diversified global sourcing network. It gives us resilience, improves our speed to market, and positions us to scale."

Looking ahead, Yeti guided for adjusted earnings of $2.77 to $2.83 a share in 2026, below the $2.87 a share that analysts were looking for. Adjusted sales are projected to grow 6% to 8% for the year.

Reintjes said tariffs will remain a headwind over the coming year. He expressed confidence that Yeti can still enhance profitability, citing the company's supply-chain actions and optimized cost structure.

Shares fell 5%, to $46.98, in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

February 19, 2026 06:56 ET (11:56 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.