YETI Holdings, Inc.
For the period ended Jun 28, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2025 · Filed Aug 7, 2025
YETI$44.97-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-29; filed 2025-05-08.
0001670592-25-000024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-08-07.
0001670592-25-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 77 previous paragraphs and 111 current paragraphs.
44 unchanged; 33 reworded; 29 added; 0 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
During the second quarter of 2025, we expanded our Drinkware category with the launch of the Rambler Travel Bottle in two sizes and introduced the redesigned and improved Rambler Jug in two sizes. We continued the expansion of our outdoor kitchen offerings with the launch of the Rambler Insulated Bowls in six sizes and the 14” Cast Iron Skillet. In our Coolers & Equipment category, we expanded our hard cooler offerings with the redesigned Roadie 24, the new Hondo Beach Chair, and the limited release Can Crusher. We continued the expansion of our bag offerings with the launch of the new Cayo backpack in two sizes and two new sizes of the Ranchero backpack. In our bag offerings, we also introduced the Daytrip collection, which includes the Daytrip Lunchboxes in two sizes, the Daytrip Lunch Bag, and the Daytrip Tote Bag. We also introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.
Current report
During 2025, the United States implemented and then subsequently modified tariffs on imports from a number of countries, many of whom then imposed retaliatory tariffs on the United States. Tariffs raise the cost to import our products. As such, we expect tariffs to have a negative impact on our gross margins and results of operations for 2025. However, the ultimate degree of such negative impact is uncertain, as it depends on the level of tariffs in effect on each particular country, as well as the quantity and timing of our purchases from each affected country. For example, if tariffs on imports from China return to April 2025 levels, we would expect a further material negative impact on our gross margins and results of operations in 2025 due to the fact that a large percentage of our Drinkware manufacturing capacity will not be outside of China until the end of 2025.
Current report
Net sales decreased $17.6 million, or 4%, to $445.9 million for the three months ended June 28, 2025, compared to $463.5 million for the three months ended June 29, 2024, reflecting caution from consumers and our retail partners, inventory constraints driven by our supply chain transition, and a more promotional drinkware market environment. Net sales for the second quarter of 2025 and 2024 also include $1.5 million and $2.3 million, respectively, of sales related to gift card redemptions in connection with recall remedies.
Current report
•Wholesale channel net sales decreased $15.8 million, or 7%, to $197.3 million, compared to $213.1 million in the same period last year, primarily due to a decline in both Drinkware and Coolers & Equipment.
Current report
•Coolers & Equipment net sales decreased by $5.4 million, or 3%, to $200.6 million, compared to $205.9 million in the same period last year. Coolers & Equipment performance was primarily driven by growth in hard coolers that was more than offset by a decline in soft coolers during the quarter.
Current report
Net sales in the U.S. decreased $19.1 million, or 5%, to $367.8 million for the three months ended June 28, 2025. Net sales in international locations increased $1.5 million, or 2%, to $78.1 million for the three months ended June 28, 2025 reflecting strong growth in Europe and our launch in Japan in the current year quarter. This was partially offset by conservative inventory purchases and caution from our wholesale partners in other international regions against robust consumer demand. Net sales in international locations represented 18% and 17% of total net sales in the second quarter of 2025 and 2024, respectively.
Current report
•the impact of selective price increases on certain drinkware products implemented during the second quarter of 2025, which favorably impacted gross margin by 70 basis points;
Current report
•lower inbound freight, which favorably impacted gross margin by 20 basis points.
Current report
•higher tariff costs, which unfavorably impacted gross margin by 180 basis points; and
Current report
•other impacts, which unfavorably impacted gross margin by 10 basis points.
Current report
•a decrease in employee compensation and benefits expenses of $1.7 million (no impact on SG&A as a percent of sales) mainly due to lower incentive compensation costs, partially offset by an increase in non-cash stock-based compensation expense; and
Current report
The decreases in SG&A expenses were partially offset by higher general and administrative expenses of $4.0 million (increasing SG&A as a percent of sales by 130 basis points) mainly due to higher technology expenses related to growth investments and occupancy costs; and an increase in depreciation and amortization expense of $0.8 million (increasing SG&A as a percent of sales by 20 basis points).
Current report
Other income increased to $5.8 million for the three months ended June 28, 2025, compared to other income of $0.4 million for the three months ended June 29, 2024. The change versus the prior year quarter was primarily due to higher foreign currency gains on intercompany balances.
Current report
Income tax expense was $16.9 million for each of the three months ended June 28, 2025 and June 29, 2024. The effective tax rate was 25% for each of the three months ended June 28, 2025 and June 29, 2024.
Current report
Six Months Ended June 28, 2025 Compared to June 29, 2024
Current report
Net Sales
Current report
Net sales in our two channels were as follows:
Current report
•Wholesale channel net sales decreased $14.5 million, or 4%, to $352.2 million, compared to $366.7 million in the same period last year, primarily due to a decline in Drinkware, partially offset by growth in Coolers & Equipment.
Current report
•Drinkware net sales decreased by $19.1 million, or 4%, to $442.0 million, compared to $461.1 million in the prior year period. Drinkware growth in our international regions was more than offset by a decline in our U.S. region, reflecting a challenging market and inventory constraints driven by our supply chain transition in the current year period.
Current report
Gross Profit
Current report
Gross profit increased $0.2 million to $459.3 million compared to $459.1 million in the prior year period. Gross margin rate increased 60 basis points to 57.6% from 57.0% in the same period last year, primarily due to the following factors:
Current report
•the impact of selective price increases on certain drinkware products implemented during the second quarter of 2025, which favorably impacted gross margin by 40 basis points; and
Current report
•lower inbound freight, which favorably impacted gross margin by 20 basis points.
Current report
These were partially offset by:
Current report
•higher tariff costs, which unfavorably impacted gross margin by 110 basis points;
Current report
Selling, General, and Administrative Expenses
Current report
SG&A expenses increased by $9.7 million, or 3%, to $375.6 million for the six months ended June 28, 2025 compared to $365.9 million for the six months ended June 29, 2024. As a percentage of net sales, SG&A expenses increased by 160 basis points to 47.1% for the six months ended June 28, 2025 compared to 45.5% for the six months ended June 29, 2024. The increase in SG&A expenses was primarily driven by:
Current report
Non-Operating Expenses
Current report
During the second quarter of 2025, we repurchased 744,572 shares of YETI’s common stock on the open market for approximately $23.0 million. Such repurchased common stock is held as treasury stock.
Reworded paragraphs (33)
Previous wording
The following discussion and analysis contains forward-looking statements within the meaning of the federal securities laws and should be read in conjunction with the disclosures we make concerning risks and other factors that may affect our business and operating results, including those described in more detail in Part I “Item 1A. Risk Factors” included in our Annual Report on Form 10-K for the year ended December 28, 2024. The information contained in this section should also be read in conjunction with our consolidated financial statements and related notes and the information contained elsewhere in this Report. See also “Cautionary Note Regarding Forward-Looking Statements” immediately prior to Part I, Item I in this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis contains forward-looking statements within the meaning of the federal securities laws and should be read in conjunction with the disclosures we make concerning risks and other factors that may affect our business and operating results, including those described in more detail in Part I “Item 1A. Risk Factors” included in our Annual Report on Form 10-K for the year ended December 28, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the SEC. The information contained in this section should also be read in conjunction with our consolidated financial statements and related notes and the information contained elsewhere in this Report. See also “Cautionary Note Regarding Forward-Looking Statements” immediately prior to Part I, Item I in this Quarterly Report on Form 10-Q.
Previous wording
During the first quarter of 2025, we expanded our bag offerings with the launch of our new Ranchero pack in two sizes, and introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.
Current wording
During the first quarter of 2025, we expanded our bag offerings with the launch of the new Ranchero backpack in two sizes, and introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.
Previous wording
Our business is exposed to and impacted by macroeconomic factors, including but not limited to uncertainty surrounding inflationary pressures, consumer confidence and purchasing behaviors, foreign currency exchange rate fluctuations, and government actions and policies, including changes in interest rates, tax rates, and tariffs. We experienced the continuation of a challenging macroeconomic environment through the first quarter of 2025. If a number of macroeconomic factors continue or worsen, we expect our business and results of operations to be adversely impacted in 2025. We intend to continue to carefully monitor macroeconomic developments and manage our business accordingly.
Current wording
Our business is exposed to and impacted by macroeconomic factors, including but not limited to uncertainty surrounding inflationary pressures, consumer confidence and purchasing behaviors, foreign currency exchange rate fluctuations, geopolitical conflicts, and government actions and policies, including changes in interest rates, tax rates, and tariffs. We experienced the continuation of a challenging macroeconomic environment through the second quarter of 2025. If a number of macroeconomic factors continue or worsen, we expect our business and results of operations to be adversely impacted in 2025. We intend to continue to carefully monitor macroeconomic developments and manage our business accordingly.
Previous wording
The current levels of tariffs on imports from China significantly raise the cost of certain of our products, particularly in our Drinkware category. As such, we expect current tariff rates to have a material negative impact on our gross margins and results of operations for 2025. We are pursuing strategic options to mitigate such impact. Importantly, we have accelerated our strategy to diversify our Drinkware manufacturing to additional countries beyond China and now expect a large majority of such manufacturing capacity to be outside of China by the end of 2025. However, a significant percentage of our Drinkware manufacturing capacity currently remains in China. The other strategic options to further mitigate tariff impacts include management of operating expenses, working capital and cash, negotiations with suppliers, evaluating pricing strategies, leveraging tariff exemptions where possible, and pursuing other supply chain optimization activities. While we pursue these mitigation strategies, we may not be able to continue sourcing certain products from China and in some cases we may intend to strategically decrease the amount of products that we source from China. As a result, we expect inventory constraints that will likely adversely impact sales in 2025.
Current wording
We continue to pursue strategic options to mitigate the impact of tariffs. Importantly, we have continued our efforts to accelerate the diversification of our Drinkware manufacturing to additional countries beyond China, and we continue to expect a large majority of such manufacturing capacity to be outside of China by the end of 2025. The other strategic options to further mitigate tariff impacts that we are taking or evaluating include managing operating expenses, working capital and cash; negotiating with suppliers; evaluating pricing strategies; leveraging tariff exemptions where possible; and pursuing other supply chain optimization activities. During 2025, we continue to diversify our supply chain out of China. The disruption caused by this transition is impacting our ability to source certain products. As a result, we continue to expect that inventory constraints will adversely impact sales in 2025.
Previous wording
Given the uncertainty regarding the scope and duration of the current or future tariffs, as well as the potential for additional trade actions by the United States or other countries, the ultimate impact on our business and results of operations is uncertain. Nevertheless, we believe that our ongoing mitigation strategies, together with our strong cash position, inventory on hand and availability under our Revolving Credit Facility, will allow us to navigate this uncertain period and provide sufficient liquidity to fund our operations for at least the next twelve months and foreseeable future.
Current wording
The ultimate impact of tariffs on our business and results of operations is uncertain. Nevertheless, we believe that our ongoing mitigation strategies, together with our strong cash position, inventory on hand and availability under our Revolving Credit Facility, will allow us to navigate this uncertain period and provide sufficient liquidity to fund our operations for at least the next twelve months and foreseeable future.
Previous wording
Fiscal Year. We have a 52- or 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Our fiscal year ending January 3, 2026 (“2025”) is a 53-week period. The first quarter of our fiscal year 2025 ended on March 29, 2025, the second quarter ends on June 28, 2025, and the third quarter ends on September 27, 2025. Our fiscal year ended December 28, 2024 (“2024”) was a 52-week period. Unless otherwise stated, references to particular years, quarters, months and periods refer to our fiscal years and the associated quarters, months, and periods of those fiscal years. The unaudited condensed consolidated financial results presented herein represent the three months ended March 29, 2025 and March 30, 2024.
Current wording
Fiscal Year. We have a 52- or 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Our fiscal year ending January 3, 2026 (“2025”) is a 53-week period. The first quarter of our fiscal year 2025 ended on March 29, 2025, the second quarter ended on June 28, 2025, and the third quarter ends on September 27, 2025. Our fiscal year ended December 28, 2024 (“2024”) was a 52-week period. Unless otherwise stated, references to particular years, quarters, months and periods refer to our fiscal years and the associated quarters, months, and periods of those fiscal years. The unaudited condensed consolidated financial results presented herein represent the three and six months ended June 28, 2025 and June 29, 2024.
Previous wording
•DTC channel net sales increased $8.4 million, or 4%, to $196.2 million, compared to $187.8 million in the prior year quarter, primarily due to growth in Coolers & Equipment. DTC channel mix was 56% in the first quarter of 2025, compared to 55% in the first quarter of 2024.
Current wording
•DTC channel net sales decreased $1.8 million, or 1%, to $248.6 million, compared to $250.4 million in the prior year quarter. DTC channel mix was 56% in the second quarter of 2025, compared to 54% in the second quarter of 2024.
Previous wording
•Drinkware net sales decreased by $9.0 million, or 4%, to $205.6 million, compared to $214.6 million in the prior year quarter. Drinkware performance was driven by growth in our international regions that was more than offset by a decline in our U.S. region. Drinkware performance was also impacted by a challenging compare of 13% growth in the prior year quarter, as well as the strategic shift to prioritize supply chain diversification over new innovation during the current year quarter.
Current wording
•Drinkware net sales decreased by $10.1 million, or 4%, to $236.4 million, compared to $246.5 million in the prior year quarter. Drinkware growth in our international regions was more than offset by a decline in our U.S. region, reflecting a challenging market and inventory constraints driven by our supply chain transition in the current year quarter.
Previous wording
Gross profit increased $6.9 million, or 4%, to $201.7 million, compared to $194.8 million in the prior year quarter. Gross margin rate increased 30 basis points to 57.4% from 57.1% in the prior year quarter, primarily due to the following factors:
Current wording
Gross profit decreased $6.7 million, or 3%, to $257.6 million, compared to $264.3 million in the prior year quarter. Gross margin rate increased 80 basis points to 57.8% from 57.0% in the prior year quarter, primarily due to the following factors:
Previous wording
•lower product costs, which favorably impacted gross margin by 120 basis points; and
Current wording
•lower product costs, which favorably impacted gross margin by 110 basis points;
Previous wording
SG&A expenses increased $11.1 million, or 7%, to $180.1 million for the three months ended March 29, 2025, compared to $169.0 million for the three months ended March 30, 2024. As a percentage of net sales, SG&A expenses increased 180 basis points to 51.3% from 49.5% in the prior year quarter. The increase in SG&A expenses was primarily driven by:
Current wording
SG&A expenses decreased $1.3 million, or 1%, to $195.5 million for the three months ended June 28, 2025, compared to $196.9 million for the three months ended June 29, 2024. As a percentage of net sales, SG&A expenses increased 140 basis points to 43.9% from 42.5% in the prior year quarter. The decrease in SG&A expenses was primarily driven by:
Previous wording
The increases in SG&A expenses were partially offset by lower distribution and fulfillment expenses of $1.7 million (decreasing SG&A as a percent of sales by 100 basis points) mainly due to lower outbound freight, partially offset by higher online marketplace fees associated with higher net sales and third-party logistics fees.
Current wording
•a decrease in distribution and fulfillment expenses of $3.4 million (decreasing SG&A as a percent of sales by 10 basis points) mainly due to lower outbound freight expenses, partially offset by higher online marketplace fees associated with higher Amazon Marketplace net sales;
Previous wording
•an increase in marketing and advertising expenses of $0.7 million (no impact on SG&A as a percent of sales).
Current wording
•a decrease in marketing and advertising expenses of $1.0 million (no impact on SG&A as a percent of sales).
Previous wording
Interest income, net was $0.3 million for the three months ended March 29, 2025. Interest income, net was $0.7 million for the three months ended March 30, 2024. The change versus the prior year quarter was primarily due to a decrease in interest income, partially offset by a decrease in interest expense.
Current wording
Interest income, net was $0.3 million for the three months ended June 28, 2025. Interest expense, net was $0.5 million for the three months ended June 29, 2024. The change versus the prior year quarter was primarily due to an increase in interest income and a decrease in interest expense.
Previous wording
Net sales increased $9.7 million, or 3%, to $351.1 million for the three months ended March 29, 2025, compared to $341.4 million for the three months ended March 30, 2024. Net sales for the first quarter of 2024 and 2023 also include $0.9 million and $2.0 million, respectively, of sales related to gift card redemptions in connection with recall remedies.
Current wording
Net sales decreased $7.9 million, or 1%, to $797.0 million for the six months ended June 28, 2025, compared to $804.9 million for the six months ended June 29, 2024. Net sales for the six months ended June 28, 2025 and June 29, 2024 also include $2.4 million and $4.3 million, respectively, of sales related to gift card redemptions in connection with recall remedies.
Previous wording
•Wholesale channel net sales increased $1.3 million, or 1%, to $154.9 million, compared to $153.6 million in the same period last year, primarily due to growth in Coolers & Equipment.
Current wording
•DTC channel net sales increased $6.6 million, or 2%, to $444.8 million, compared to $438.2 million in the prior year period, due to growth in Coolers & Equipment.
Previous wording
•Coolers & Equipment net sales increased by $20.3 million, or 17%, to $140.2 million, compared to $119.9 million in the same period last year, due to growth in both our U.S. and international regions, driven by strong performance in bags and hard coolers.
Current wording
•Coolers & Equipment net sales increased by $14.9 million, or 5%, to $340.8 million, compared to $325.8 million in the same period last year, primarily driven by strong performance in bags and hard coolers, partially offset by a decline in soft coolers.
Previous wording
Net sales in the U.S. decreased $4.5 million, or 2%, to $271.3 million for the three months ended March 29, 2025. Net sales in international locations increased $14.3 million, or 22%, to $79.9 million for the three months ended March 29, 2025. Net sales in international locations represented 23% and 19% of total net sales in the first quarter of 2024 and 2023, respectively.
Current wording
Net sales in the U.S. increased $23.6 million, or 4%, to $639.0 million for the six months ended June 28, 2025. Net sales in international locations increased $15.8 million, or 11%, to $158.0 million for the six months ended June 28, 2025 reflecting strong growth in Europe, Canada, and our launch in Japan in the second quarter or 2025. Net sales in international locations represented 20% and 18% of total net sales in the first six months of 2025 and 2024, respectively.
Previous wording
•the absence in the current year quarter of the amortization of inventory fair value step-up in connection with the Mystery Ranch acquisition, which favorably impacted gross margin by 50 basis points.
Current wording
•the absence in the current year quarter of the amortization of inventory fair value step-up in connection with the Mystery Ranch acquisition, which favorably impacted gross margin by 60 basis points;
Previous wording
•a decrease in the mix of Drinkware net sales, which unfavorably impacted gross margin by 100 basis points; and
Current wording
•a decrease in the mix of Drinkware net sales, which unfavorably impacted gross margin by 40 basis points; and
Previous wording
•the unfavorable impact of foreign currency exchange rates, which unfavorably impacted gross margin by 40 basis points.
Current wording
•the unfavorable impact of foreign currency exchange rates, which unfavorably impacted gross margin by 20 basis points.
Previous wording
•an increase in general and administrative expenses of $6.1 million (increasing SG&A as a percent of sales by 160 basis points) mainly due to higher advisory and legal fees, technology expenses, and occupancy costs, partially offset by the absence of asset impairments;
Current wording
•an increase in general and administrative expenses of $9.6 million (increasing SG&A as a percent of sales by 120 basis points) mainly due to higher technology expenses related to growth investments, occupancy costs, and advisory and legal fees, partially offset by the absence of asset impairments;
Previous wording
•an increase in employee compensation and benefits expenses of $5.0 million (increasing SG&A as a percent of sales by 100 basis points) mainly due to investments in headcount to support future growth and an increase in non-cash stock-based compensation expense;
Current wording
•an increase in employee compensation and benefits expenses of $3.3 million (increasing SG&A as a percent of sales by 60 basis points) mainly due to an increase in non-cash stock-based compensation expense; and
Previous wording
•an increase in depreciation and amortization expense of $1.0 million (increasing SG&A as a percent of sales by 20 basis points); and
Current wording
•an increase in depreciation and amortization expense of $1.7 million (increasing SG&A as a percent of sales by 20 basis points).
Previous wording
Other income was $1.4 million for the three months ended March 29, 2025, compared to other expense of $4.1 million for the three months ended March 30, 2024. The change versus the prior year quarter was primarily due to foreign currency gains on intercompany balances for the three months ended March 29, 2025 versus foreign currency losses on intercompany balances for the three months ended March 30, 2024.
Current wording
Other income was $7.1 million for the six months ended June 28, 2025, compared to other expense of $3.7 million for the six months ended June 29, 2024. The change versus the prior year period was primarily due to foreign currency gains on intercompany balances for the six months ended June 28, 2025 versus foreign currency losses on intercompany balances for the six months ended June 29, 2024.
Previous wording
Income tax expense was $6.7 million for the three months ended March 29, 2025, compared to $6.5 million for the three months ended March 30, 2024. The increase in income tax expense was primarily due to higher income before income taxes. The effective tax rate was 29% for both of the three months ended March 29, 2025 and March 30, 2024.
Current wording
Income tax expense was $23.7 million for the six months ended June 28, 2025, compared to $23.4 million for the six months ended June 29, 2024. The increase in income tax expense was primarily due to higher income before income taxes. The effective tax rate was 26% for each of the six months ended June 28, 2025 and June 29, 2024.
Previous wording
As of March 29, 2025, we had a cash balance of $259.0 million, working capital (excluding cash) of $210.9 million, and $300.0 million of borrowings available under the Revolving Credit Facility.
Current wording
As of June 28, 2025, we had a cash balance of $269.7 million, working capital (excluding cash) of $229.5 million, and $300.0 million of borrowings available under the Revolving Credit Facility.
Previous wording
At March 29, 2025, we had $77.0 million principal amount of indebtedness outstanding under the Term Loan A under the Credit Facility and no outstanding borrowings under the Revolving Credit Facility. The weighted-average interest rate for borrowings under the Term Loan A was 6.20% during the three months ended March 29, 2025.
Current wording
At June 28, 2025, we had $75.9 million principal amount of indebtedness outstanding under the Term Loan A under the Credit Facility and no outstanding borrowings under the Revolving Credit Facility. The weighted-average interest rate for borrowings under the Term Loan A was 6.17% during the three months ended June 28, 2025.
Previous wording
During the first quarter of 2025, our Board of Directors approved a $350.0 million increase to the Share Repurchase Program authorization, excluding fees, commissions, and excise tax due under the Inflation Reduction Act of 2022. As of March 29, 2025, $450.0 million remained available under the Share Repurchase Program.
Current wording
On February 1, 2024, our Board of Directors authorized the repurchase of up to $300.0 million of YETI’s common stock (the “Share Repurchase Program”), excluding fees, commissions, and excise tax due under the Inflation Reduction Act of 2022.
Previous wording
On February 1, 2024, our Board of Directors authorized the repurchase of up to $300.0 million of YETI’s common stock (the “Share Repurchase Program”), excluding fees, commissions, and excise tax due under the Inflation Reduction Act of 2022. The common stock may be repurchased from time to time at prevailing prices in the open market, through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. Repurchases under the share repurchase program may also be made pursuant to a plan adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing, manner, price, and actual amount of share repurchases will be determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital allocation needs and opportunities, and corporate and regulatory considerations. YETI has no obligation to repurchase any amount of our common stock, and such repurchases may be suspended or discontinued at any time.
Current wording
During the first quarter of 2025, our Board of Directors approved a $350.0 million increase to the Share Repurchase Program authorization, for a total of $450.0 million available under the Share Repurchase Program. Repurchases under the Share Repurchase Program may be made from time to time at prevailing prices in the open market, through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. Repurchases under the Share Repurchase Program may also be made pursuant to a plan adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing, manner, price, and actual amount of share repurchases will be determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital allocation needs and opportunities, and corporate and regulatory considerations. YETI has no obligation to repurchase any amount of our common stock, and such repurchases may be suspended or discontinued at any time.
Previous wording
Cash flows related to operating activities are dependent on net income, non-cash adjustments to net income, and changes in working capital. The decrease in cash used in operating activities during the three months ended March 29, 2025 compared to cash used in operating activities during the three months ended March 30, 2024 is primarily due to a decrease in cash used in working capital driven by higher accounts payable and accrued expenses balances, partially offset by lower taxes payables balances in the current year period.
Current wording
Cash flows related to operating activities are dependent on net income, non-cash adjustments to net income, and changes in working capital. The decrease in cash used in operating activities during the six months ended June 28, 2025 compared to cash used in operating activities during the six months ended June 29, 2024 is primarily due to a decrease in cash used in working capital driven by a decrease in cash used in the changes of accounts receivable and accounts payable.
Previous wording
The decrease in cash used in investing activities during the three months ended March 29, 2025 was primarily due to the acquisition of Mystery Ranch, LLC and Butter Pat Industries, LLC in the prior year period.
Current wording
The decrease in cash used in investing activities during the six months ended June 28, 2025 was primarily due to the acquisition of Mystery Ranch, LLC and Butter Pat Industries, LLC in the prior year period.
Previous wording
The decrease in cash used by financing activities during the three months ended March 29, 2025 was primarily due to repurchases of common stock in the prior year period.
Current wording
The decrease in cash used by financing activities during the six months ended June 28, 2025 was primarily due to higher repurchases of common stock in the prior year period.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
•the absence in the current year quarter of the amortization of inventory fair value step-up in connection with the Mystery Ranch acquisition, which favorably impacted gross margin by 70 basis points; and
Current report — wording carried from elsewhere
Net sales in our two primary product categories were as follows:
Current report — wording carried from elsewhere
•lower product costs, which favorably impacted gross margin by 110 basis points;
Current report — wording carried from elsewhere
The increases in SG&A expenses were partially offset by a decrease in distribution and fulfillment expenses of $4.6 million (decreasing SG&A as a percent of sales by 40 basis points) mainly due to lower outbound freight fees, partially offset by higher online marketplace fees associated with higher Amazon Marketplace net sales and higher third-party logistics fees; and a decrease in marketing and advertising expenses of $0.3 million (no impact on SG&A as a percent of sales).
Current report — wording carried from elsewhere
Interest income, net was $0.6 million for the six months ended June 28, 2025. Interest income, net was $0.1 million for the six months ended June 29, 2024. The change versus the prior year quarter was primarily due to a decrease in interest expense.