By Dean Seal

Yeti Holdings cut its guidance for the year to account for incoming tariffs and the headaches they are creating for its supply chain.

The maker of coolers and insulated drinkware said Thursday that global tariff war kicked off by the Trump administration is expected to eat into both the top and bottom lines as it takes steps to mitigate the impact of new costs, including shifting its supply chain out of China.

"Absent the tariffs, we believe Yeti was set up for a strong year of delivering against our full year plan," Chief Executive Matt Reintjes said.

Yeti now expects adjusted sales, which exclude the impact of recall reserves, to rise 1% to 4% this year instead of 5% to 7% as previously predicted. Adjusted earnings are now forecast to hit $1.96 to $2.02 a share, down from a previous target of $2.90 to $2.95 a share.

Shares fell 7.3% to $25.90 in premarket trading.

For the first three months of the year, Yeti posted a profit of $16.6 million, or 20 cents a share, compared with $15.9 million, or 18 cents a share, in the same quarter a year earlier.

Stripping out one-time items, adjusted earnings were 31 cents a share. Analysts polled by FactSet had been expecting 27 cents a share.

Sales rose 3% to $351.1 million, topping analyst estimates for $347 million, according to FactSet.

Cooler and equipment sales were up 17% at $140.2 million from growth in the U.S. and the international regions, led by a strong performance in bags and hard coolers. Drinkware sales meanwhile slid 4% to $205.6 million, as a decline in the U.S. offset growth overseas.

Direct-to-consumer sales were up 4% while wholesale channel sales rose 1%.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 08, 2025 06:45 ET (10:45 GMT)

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