Yeti Holdings cut its 2026 adjusted sales growth forecast to about 6% on Thursday, from 7% to 8%, as it warned that cautious consumers could restrain fourth-quarter demand. Shares fell 14% to $37.01 in premarket trading before the opening bell.

What changed in Yeti’s 2026 outlook?

The Austin, Texas-based maker of coolers and drinkware also lowered its adjusted earnings per share range to $2.90 to $2.95 from $2.94 to $3.00. Adjusted operating income growth now stands at 7% to 9%, compared with 10% to 12% in the prior outlook.

Yeti kept its adjusted operating margin target at about 14.9% and its free cash flow forecast at $200 million to $225 million. The revision therefore cuts sales, earnings and operating-income forecasts, while leaving the margin and free-cash-flow targets intact.

For investors, the revision places more forecast risk on demand. Yeti must reconcile a slower sales-growth target with unchanged margin and cash-flow targets, so execution now carries more weight.

Why did management cut the forecast?

Matt Reintjes, Yeti’s chair, president and chief executive, said: “Looking ahead, we anticipate the consumer environment will remain cautious and put pressure on demand in Q4.” He said sales momentum was inconsistent in the U.S. and Canadian markets at points during the third quarter, and that shoppers appeared choosier about discretionary purchases.

That explanation places consumer selectivity at the center of the downgrade, rather than a change in Yeti’s margin or cash targets. The practical question for investors and channel partners is whether that caution broadens in Q4 or remains concentrated in the markets and channels already showing softer momentum.

How did third-quarter trading perform?

Yeti reported third-quarter net sales of $509.4 million, up 4% from a year earlier, and adjusted sales of $517.9 million, up 6%. Net income rose to $44.4 million, or 60 cents a share, from $39.4 million, or 48 cents. Adjusted earnings reached 91 cents a share, compared with 61 cents.

• Drinkware sales rose 8% to $284.0 million.
• Cooler and equipment sales were unchanged at $215.6 million.
• International sales grew 19% to $119.1 million.
• U.S. sales rose 1% to $390.3 million.
• Wholesale sales rose 19% to $237.3 million.
• Direct-to-consumer sales fell 6% to $272.2 million, on lower U.S.-owned e-commerce and U.S. Amazon marketplace sales.

The product and channel mix explains why headline growth remained positive despite management’s caution: drinkware advanced, international and wholesale delivered double-digit gains, and U.S. direct channels contracted. For operators, that shifts greater attention to wholesale execution and international demand, while the Q4 outlook hinges on whether U.S. consumers loosen or tighten discretionary spending.

What do the results mean for expectations?

Third-quarter sales came in below the $523.1 million consensus compiled by FactSet, according to The Wall Street Journal. Adjusted earnings per share of 91 cents exceeded the 84 cents analysts expected, while their full-year adjusted earnings forecast stood at $2.98.

At $2.98, the full-year analyst forecast sat inside Yeti’s previous $2.94 to $3.00 range but above its revised $2.90 to $2.95 range. The revenue miss and per-share beat complicate the signal: demand fell short of expectations, but Yeti retained its stated operating-margin and free-cash-flow targets.

Yeti scheduled its results conference call for 8 a.m. ET on Thursday. The call will test management’s Q4 demand warning, particularly whether wholesale and international growth can offset softness in the U.S. direct channel.