Yeti shares fall 5% as guidance misses expectations despite Q4 beat

Outdoor lifestyle brand Yeti Inc. saw its shares plummet 5% in after-hours trading on February 25, 2025, following the release of its fourth-quarter earnings report that exceeded Wall Street expectations but provided disappointing forward guidance. The Austin, Texas-based company reported adjusted earnings of $0.45 per share for the fourth quarter, surpassing analyst forecasts of $0.42 per share, while revenue came in at $321 million, slightly above the $318 million consensus. Despite beating quarterly estimates, investors reacted negatively to Yeti's first-quarter projection of $290-300 million, which lagged behind the $305 million expected by analysts. The company's cautious outlook for 2025, anticipating flat to low-single-digit revenue growth, further dampened investor sentiment. Yeti's management cited challenging macroeconomic conditions and increased promotional activity in the competitive premium outdoor market as factors contributing to the tempered expectations. The stock decline reflects broader market concerns about the sustainability of premium pricing strategies in the current economic climate, despite Yeti's continued strong performance in its direct-to-consumer channels.