YETI Holdings Inc. (YETI) shares plummeted 5.03% in intraday trading on Friday, as investors reacted to the company's mixed earnings report and lowered full-year guidance. The maker of high-end coolers and outdoor gear faced challenges related to tariffs and supply chain disruptions, overshadowing its better-than-expected quarterly earnings.

While YETI reported operating earnings of 31 cents per share for the quarter, beating analysts' expectations of 27 cents, the company significantly cut its 2025 forecast due to tariff impacts. YETI now expects full-year operating earnings per share of $1.96 to $2.02, down from its previous forecast of $2.90 to $2.95. The revised guidance reflects the ongoing trade tensions between the U.S. and China and their effect on the company's operations.

YETI has been actively working to mitigate the impact of tariffs by moving its production out of China. The company reported being "ahead of plan" in these efforts, expecting to have "limited exposure" to goods sourced from China by the end of 2025. However, this accelerated plan has led to "inventory supply disruptions," which contributed to the lowered guidance. The market's negative reaction suggests concerns about YETI's ability to navigate these challenges in the short term, despite the company's long-term strategy to reduce its dependence on Chinese manufacturing.