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Investing.com -- YETI Holdings, Inc. reported first-quarter earnings that beat analyst expectations, but shares fell 8.7% as the company lowered its full-year outlook due to anticipated tariff impacts and supply chain disruptions.
The outdoor product manufacturer posted adjusted earnings per share of $0.31, surpassing the analyst consensus of $0.27. Revenue for the quarter rose 3% YoY to $351.1 million, slightly above estimates of $347.5 million.
However, YETI slashed its full-year adjusted EPS guidance to a range of $1.96 to $2.02, well below the previous forecast of $2.90 to $2.95 and analyst expectations of $2.73. The company also reduced its sales growth outlook to 1-4% from 5-7% previously.
YETI cited higher tariff costs and inventory supply disruptions as key factors behind the guidance cut.
"Our updated full year outlook reflects both our confidence in the business and our current assessment of anticipated headwinds this year, including the projected impact of tariffs and supply disruptions," said Matt Reintjes, President and CEO of YETI.
The company is accelerating efforts to diversify its supply chain away from China. YETI aims to have less than 5% of its total cost of goods related to products from China for the U.S. market by the end of 2025.
Despite near-term challenges, management expressed confidence in YETI’s ability to navigate the fluid trade environment, citing the company’s strong balance sheet and cash flow generation.