Yeti Holdings' insulated water bottles aren't the go-to hydration solution anymore, having lost market share to trendier brands such as Owala and Stanley.

Yeti Chief Executive Matt Reintjes on Thursday said the well publicized, trend-driven momentum and share swapping that has played out across the drinkware category over the past few years has dragged on demand and hurt sales.

The company has successfully offset some of the headwinds with new product launches and diversification efforts, though. "This is why we continue to show overall drinkware growth, versus what this significant drag would otherwise suggest," he said on a call with analysts.

Shares were recently trading 13% lower, at $44.22, on pace for their lowest close since May. Despite the decline, shares are up about 25% over the past year.

Drinkware sales ticked up 2% in the second quarter, marking a sequential slowdown from 5% sales growth last period. Cooler and equipment sales were up 16%.

Company-wide sales rose 8.5%, to $483.9 million, in line with Wall Street models. Looking ahead, Yeti reaffirmed its outlook for sales to climb 7% to 8% this year.

William Blair analysts said investors were likely disappointed by Yeti's top-line performance during the quarter, as well as the lack of a raise to its outlook.

"We estimate the buy-side was looking for something closer to 8% to 9% sales growth for the full year to help boost the credibility of management's long-term target in the high-single- to low-double-digit range," they said.

Still, Yeti improved its profitability during the recent quarter. Earnings landed well ahead of analyst expectations, even without the added benefit of tariff refunds and despite incremental cost pressures.

For its three months ended July 4, Yeti posted a profit of $71.3 million, or 94 cents a share, up from $51.2 million, or 61 cents a share, a year earlier. Adjusted earnings of 67 cents a share topped the 54 cents that analysts polled by FactSet expected.

For the year, the company now expects adjusted earnings of $2.94 to $3 a share, up from a prior forecast of $2.83 to $2.89 a share. Analysts were looking for adjusted earnings of $2.89 a share.