YETI Holdings, Inc.

Good morning, ladies and gentlemen, and welcome to the Yeti Holdings Second Quarter Fiscal 2026 Results Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Please limit yourself to one question and one follow-up. If at any time during this call you require immediate assistance, please press star 0 for the operator. This call is being recorded on Thursday, August 13th, 2026. I would now like to turn the conference over to Arvind Bhatia, Head of Investor Relations. Please go ahead.

Good morning and thank you for joining us to discuss Yeti Holdings' second quarter fiscal 2026 results. Leading the call today will be Matt Reintjes, Chairman and CEO, and Scott Bomar, CFO. Following our prepared remarks, We will open the call for your questions. Before we begin, we would like to remind you that some of the statements that we made today on this call may be considered forward-looking, and such forward-looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. For more information, please refer to the risk factors detailed in our most recently filed Form 10-K. We undertake no obligation to revise or update any forward-looking statements made today as a result of new information, future events or otherwise, except as required by law. During our call today, we will discuss certain non-GAAP measures. We use non-GAAP measures in certain contexts as we believe they more accurately represent the true operational performance and underlying results of our business. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in the press release or in the presentation posted this morning to the investor relations section of our website at yeti.com. I would now like to turn the call over to Matt.

Thanks, Arvind, and good morning. We appreciate you all joining us today. Yeti's second quarter reinforced the strength, resilience, and breadth we are building across the business. We delivered nearly 9% top-line growth, operating margins and EPF that exceeded our expectations, and we executed $130 million in share repurchases in the quarter, which brings our total since 2024 to over $600 million, reflecting our focus on returning value to shareholders through the strength of our balance sheet and free cash flow generation. But what I want to emphasize is what Q2 continues to tell us about the business structurally. Thank you for joining us. That progress is not accidental. It reflects multi-year investments in brand, innovation, commercialization, and global capabilities that are now driving the model. Scott will walk through the financials and our outlook in detail, so I'm going to focus my time on what matters most from an investor perspective. What we are seeing in the business, why we believe the underlying demand signals remain healthy, and how we are positioning Yeti to accelerate growth and generate durable returns over time. Thank you so much for joining us. and reinforce Yeti's relevance across consumer groups. We showed up in premium programming as well as digital, social and outdoor environments, including a presence in major live sports, highlighted by the most watched NBA Finals game since 2016. We paired that reach with our active and deep presence, local activations across core and emerging communities around the world, reinforcing our brand continues to be rooted in culture, people and real-world use. This balance is important. and more everyday moments. Strong engagement across our digital ecosystem and wholesale partners reinforces our confidence that the investments we have made in brand building and storytelling are strengthening consumer connection and that brand efficiency is a compounding advantage. Second, innovation continues to drive the expansion of our product platforms across a wide range of product families. Our second quarter performance demonstrated that our brand is building upon our hard cooler and drinkware legacy into more platforms across soft coolers, bags, and protective cases. that increase daily use and reliance. We are a brand that travels with the consumer through their day and through their week. That platform breadth gives us resilience and opportunity. It means growth isn't tethered to a single product cycle, channel, or geography. Consumers continue to respond to Yeti's durability, design, and performance across categories. The combination of brand trust and product credibility is a strategic advantage, and it's what gives us staying power and allows us to enter new categories with relevance. are day-trip insulated bags are a great example of platform expansion. Camino Toaster, another, where product momentum continues and the recent launch of the Camino Zip brings new sizes and additional functionality to an already strong product family. We also saw continued strength in smaller, more personal-sized hard coolers, with the Rode 15 performing well and the Rode 8 generating positive early consumer response. In cases and storage, the GoVox family continue to build momentum across both consumer and professional use cases. As we've said before, there's more to come here, and we're excited to see where it goes. In drinkware, we've been clear over the past few years about Yeti's strategy to drive innovation and broaden our assortment across the platform. To put the category in context, we expect a roughly 600 basis point drag on our U.S. drinkware growth in 2026 from three primary SKUs. All tied to the well-publicized but narrow, trend-driven momentum and share-swapping that has played out in the category over the past few years. That is a significant headwind, but it has been more than counterbalanced by strong execution of our diversification and innovation strategy across the rest of the platform. This is why we continue to show overall drinkware growth versus what this significant drag would otherwise suggest. The products driving the headwind will largely complete their lap by year-end, resetting the base as we head into 2027. We continue to be very pleased with the underlying performance of the Drinkware platform, not only new innovation, but also some of our longest-standing models within Yeti Drinkware. That reinforces our view of the durable opportunity in front of this category, domestically and globally. The partners who have embraced our broad portfolio are seeing the benefits. and Stronger Merchandising. while food storage, our beverage buckets, Rambler bowls, and carbon steel cookware demonstrate Yeti's expanding opportunity in the home environment. Third, our omni-channel strategy continues to drive balanced and durable growth. In wholesale, we delivered another quarter of strong year-over-year sell-in and sell-through. This performance reflects continued support from our retail partners as they expand their commitments to the broader Yeti portfolio and lean into the brand's momentum. Our wholesale approach hasn't changed. Thank you for joining us. International remains a significant long-term growth opportunity, and we're deploying our disciplined market-by-market approach. Europe delivers strong year-over-year growth with momentum across both digital and wholesale channels, as well as continued door expansion. What is particularly encouraging is the increasing breadth and diversity in the European markets, with growth across drinkware, hard coolers, soft coolers, and bags. We are building awareness, localizing the Yeti playbook, and maintaining premium positioning. are recently opened pop-up store in Munich as a strong example. It sits in a premier high-visibility location, brings the brand to life through storytelling and service, and has already drawn consumers willing to travel meaningful distances to experience the brand. Asia is still early in its journey, but progress is there. Japan, in its first full year as a direct business, delivered significant growth in the quarter. We are also advancing our expansion plans for Korea, China, Indonesia, and Taiwan, and by the end of 2026, we expect to be live in 11 markets compared to four at this point last year. These are still early-stage contributions, but the consumer response reinforces our conviction in the long-term international opportunity. In Australia and New Zealand, brand strength and focused go-to-market execution supported a strong Q2 growth, even as macro conditions in those markets remain challenging. In Canada, growth was positive but weaker as healthy DTC performance was offset by softer-than-expected wholesale sales despite strong underlying consumer demand and sell-through trends. The big picture internationally is this. Yeti is still in the early innings of a massive opportunity. Our brand can travel. Our product platforms resonate. Our international playbook remains the same. Right assortment, right distribution, localized activation, disciplined investment. And Q2 has proved that it translates across geographies. Turning to operations, our supply chain continues to respond well in a complex and dynamic environment. We're managing the significant impact of oil markets, raw material cost pressure, ocean and parcel headwinds, and shipping delays across certain Asia trade lanes. We've taken proactive steps to reduce risk, including qualifying additional raw material sources, further diversifying our supply chain, and scaling our structural enterprise productivity programs. We continue to invest in capabilities that strengthen our innovation engine and support long-term growth. Our global design and development network, now spanning five locations, is delivering a faster innovation cycle and a deeper pipeline than we had even 12 months ago. These investments are helping us prototype faster, collaborate more effectively with suppliers, and accelerate the pace at which we bring new ideas to market. We're also investing in digital and customization capabilities. Ranger, our AI-driven shopping assistant, continues to improve conversion and engagement. Artboard customization, a new enhancement to our Yeti.com customization platform, is enabling multiple graphics, logos, and text within a single design experience. These are exactly the kind of capabilities that make Yeti more personal. Stepping back, Q2 reinforced several important themes about where we are as a business. Brand power compounds. Diversification is working. We are not dependent on one moment, one product, one channel, one customer, or one geography. Wholesale, DTC, marketplaces, retail stores, corporate sales, and international each play a role. And together they create a more resilient, more durable business. And discipline matters more in this environment, not less. Consumers are intentional. Retailers are selective. Input costs are fluid. Category competition is dynamic. This is exactly when brand strength, product credibility, inventory discipline, and operational execution separate the strongest companies from the rest. Before I turn to the back half of 2026, I want to give you an early look at our upcoming Investor Day on September 17th here in Austin. We're looking forward to hosting investors and laying out the next chapter of Yeti's growth story. Let me give you a sense of what we plan to cover. First is brands. This is not a tagline. It's what's happening in the business. The brand is showing up in new geographies, new communities, and new daily routines and doing it with credibility. We will show you why we believe the breadth of Yeti brand relevance is durable, differentiated, and still very early in its reach. Second, innovation. Our innovation engine is built to solve problems, not chase trends. We design for durability, performance, and real-world use, and that is what earns us the right to expand into new categories. We'll walk you through the capability of our global innovation centers, the conviction in our pipeline, and why we believe the next wave of product platforms will be as impactful as those that built this company. Third, commercialization. Right product, right place. Across DTC and wholesale, and increasingly around the world. We're focused on shelf velocity, expanding positioning, and opening new doors globally. Great innovation only compounds when you commercialize it well, and we will lay out how we plan to do that. Fourth, on the horizon. Add together a powerful brand, a global innovation engine, and a disciplined commercialization model, and the permission and opportunity for meaningful category expansion becomes very real. Fifth, a powerful financial model. Multiple durable growth engines, disciplined capital allocation, a clear, credible path to outside EPS growth leads to a financial model built to compound. That is the story we're building, and we're looking forward to telling it. Looking ahead, we have significant runway in front of us. In the back half of the year, we will continue to build around clear growth platforms, soft coolers, bags, cases and storage, personal hard coolers, hydration, custom, and international expansion. We will support the business through key consumer moments, including a series of fall efforts and ultimately Q4 holiday gifting. And we will continue to bring innovation. Thank you for joining us. That is what gives us conviction in our ability to grow through cycles, protect the brand, expand margins over time, generate strong free cash flow, and compound value for shareholders. I want to close by thanking our partners around the world, and especially the Yeti team. The second quarter reflected a tremendous amount of work, from product and brand to sales and operations to our retail, digital, international, and corporate teams. We are building Yeti for the long term, and we're getting stronger every quarter. With that, I will turn it over to Scott.