YETI Holdings, Inc. (YETI): Business Model Canvas [Dec-2025 Updated]

You're looking to crack the code on how YETI Holdings, Inc. maintains its premium grip in the outdoor gear market, and honestly, it's a masterclass in brand control and channel transformation. As an analyst who's seen a few cycles, I can tell you their strategy isn't just about making tough coolers; it's about owning the customer relationship, evidenced by their shift where Direct-to-Consumer (DTC) sales now hit approximately 60% of revenue (LTM Q2 2025). This Business Model Canvas breaks down exactly how they manage high Cost of Goods Sold, push over 30 new products, and build that aspirational lifestyle brand, so dive in to see the mechanics behind their high-margin growth engine.

YETI Holdings, Inc. (YETI) - Canvas Business Model: Key Partnerships

You're looking at the network that keeps the premium gear flowing, which is critical given the macro pressures and the massive supply chain shift YETI Holdings, Inc. (YETI) is undertaking in 2025. The partnerships here are about resilience and global reach.

Global network of diversified contract manufacturers

YETI Holdings, Inc. is aggressively de-risking its manufacturing base. The goal for the end of Fiscal 2025 is to have less than 5% of its total cost of goods sold for the U.S. market exposed to U.S. tariffs on China-sourced goods. This is a significant pivot from prior years.

Specifically for Drinkware, the company is on track to produce more than 90% outside of China by the close of 2025. This diversification effort is supported by a manufacturing footprint that now includes facilities in Mexico, Thailand, Vietnam, Malaysia, the Philippines, Taiwan, and Poland. As part of this transition, YETI Holdings, Inc. has reduced its Drinkware facilities in China to just three as of early 2025, down from eight food-and-beverage facilities in May 2024.

The company is investing capital to support this, with Fiscal 2025 capital expenditures expected to be approximately $50 million, with a portion dedicated to supply chain enhancements.

Key wholesale retailers for physical distribution

Wholesale remains a core channel, though it has faced headwinds in the U.S. region due to a cautious retail environment and inventory constraints related to the supply chain transition.

Here's a look at the reported sales through the wholesale channel for the first three quarters of 2025:

The cumulative wholesale channel sales for the first three quarters of 2025 were $551.3 million, a 2% decrease compared to the same period last year, primarily driven by a decline in Drinkware.

Amazon Marketplace for e-commerce fulfillment

The Direct-to-Consumer (DTC) channel, which includes Amazon Marketplace, Corporate Sales, and YETI retail stores, is a key driver of growth, even as the U.S. YETI website saw a decline.

DTC channel sales in the third quarter of 2025 reached $288.7 million, representing a 3% increase year-over-year. This growth was specifically attributed to the Amazon Marketplace business, Corporate Sales, and YETI retail stores.

To give context to the platform itself, as of Q3 2025, third-party sellers on Amazon Marketplace maintained an all-time high share of 62% of units sold on the platform.

The company's DTC channel sales for the first three quarters of 2025 totaled $733.5 million, up 2% compared to the prior year period.

Logistics and freight partners for supply chain transformation

The supply chain transformation is a top priority for 2025, designed to mitigate tariff impacts and build agility. This effort is expected to have an unfavorable impact of approximately 300 basis points on Fiscal 2025 adjusted sales.

The company is establishing new capabilities close to its manufacturing base, including an Asia-based innovation center in Thailand, which supports a 24/7 global innovation cycle and proximity to contract manufacturing partners. This is part of a broader strategy to invest in technology and supply chain capacity, supported by the planned $50 million in capital expenditures for 2025.

The company is also focused on operational discipline to manage costs, which helped lead to an increased 2025 adjusted net income per diluted share outlook to between $2.38 and $2.49, despite the supply chain headwinds.

Strategic brand ambassadors and outdoor organizations

YETI Holdings, Inc. has formalized a strategic partnership with Fanatics to significantly expand its presence within the organized sports market.

This partnership involves bringing team color Drinkware and hard coolers to fans across:

• 32 NFL teams
• Many MLB and NHL programs
• Over 50 NCAA programs

This move leverages the brand's relevance in high-passion consumer segments, aligning with the strong performance seen in the Coolers & Equipment category, which grew 12% in Q3 2025.

YETI Holdings, Inc. (YETI) - Canvas Business Model: Key Activities

You're looking at the core actions YETI Holdings, Inc. must execute flawlessly to keep its premium positioning and drive growth in late 2025. These aren't just tasks; they are the engine room of the business model.

Accelerating Product Innovation

The commitment to innovation is a top-line driver, evidenced by the sheer volume of new offerings. Management reported a record pipeline of over 30 new products planned for release in fiscal year 2025. This pace is an acceleration from the 24 new products launched in 2024. Key activity here involves the direct product development and the integration of recent strategic acquisitions, such as the assets related to a shaker bottle acquired for $38 million in cash during the second quarter of 2025. The innovation engine is also supported by investments in new testing and innovation centers, including one in Asia (Thailand) to establish a 24/7 global innovation cycle.

The focus areas for this innovation activity include:

• Launching insulated sports jugs like the Silo Jug in Q3 2025.
• Introducing the Shaker Bottle, following a strategic acquisition.
• Expanding into new categories like bags and packs, which showed notable strength.
• Developing new drinkware to mitigate U.S. market softness.

Managing Complex, Diversified Global Supply Chain Operations

Navigating tariffs and geopolitical shifts requires intense, focused activity on the supply chain. A core part of the 2025 strategy involved transforming the supply chain to reduce reliance on China. The company accelerated this effort, targeting that by year-end 2025, 90% of U.S. drinkware production would be ex-China. This transition, however, created near-term friction; the full-year 2025 adjusted sales outlook incorporated an approximately 300 basis point unfavorable impact due to inventory supply disruptions. The impact of tariffs was significant, with Q3 2025 showing a 320 basis point unfavorable impact on adjusted gross margin. Inventory management was also a focus, with inventory decreasing 9% year-over-year to $330.5 million at the end of Q1 2025. Capital expenditures for 2025 were projected around $50 million (as of Q2 update), down from an earlier estimate of $60 million.

Building and Maintaining Premium Brand Equity and Marketing

Maintaining premium brand equity is executed through strategic channel and geographic expansion, which validates the brand's global appeal. International sales growth has been a key metric here. For Q3 2025, international sales grew 14% to $100.4 million. The full-year 2025 international growth projection was between 15% and 20%. A major marketing and brand equity activity involved expanding the presence in sports through a strategic partnership with Fanatics, bringing team color Drinkware and hard coolers to fans across all 32 NFL teams, many MLB, NHL, and over 50 NCAA programs.

Executing the Strategic Shift to Direct-to-Consumer (DTC) Sales

The DTC channel remains a critical component of the revenue mix, though performance fluctuates based on product availability and market conditions. In Q1 2025, DTC sales grew 4% to $196.2 million, representing 56% of total sales. By Q3 2025, the trailing twelve-month (TTM) DTC revenue reached 60% of the company's TTM revenue of $1.84 billion. However, Q2 2025 saw DTC sales decrease 1% to $248.6 million, still accounting for 56% of total Q2 sales. The DTC segment includes growth from YETI retail stores and the Amazon Marketplace business.

Developing Customization Capabilities for Corporate Sales

The Corporate Sales segment, which relies heavily on customization capabilities, showed resilience. In Q1 2025, corporate sales displayed continued strength, which management attributed to inbound performance and international growth following the recent expansion of customization globally. Growth in the DTC channel during Q3 2025 was partially driven by performance in Corporate Sales. This activity is essential for diversifying revenue away from the more volatile Drinkware category in the U.S. wholesale channel.

Here's a look at the channel performance snapshot from Q3 2025 results:

The focus on Coolers & Equipment sales, which grew 12% in Q3 2025 to $215 million, demonstrates the success of innovation in non-Drinkware platforms.

YETI Holdings, Inc. (YETI) - Canvas Business Model: Key Resources

You're looking at the core assets that let YETI Holdings, Inc. command premium pricing, and honestly, the brand equity is the biggest one. It's the foundation for everything else they do.

The highly recognizable and powerful YETI brand and intellectual property are protected by aggressive defense of their rights. They own patents, trademarks, and copyrights supporting key product aspects. This brand strength supported a Trailing Twelve Month revenue, as of November 2025, of approximately $1.83 Billion USD. Furthermore, as of December 4, 2025, the market valued the company at a $3.3 billion market capitalization.

Proprietary product designs and the innovation engine are evidenced by recent strategic buys. During the third quarter of 2025, YETI Holdings acquired certain assets, including designs, tooling, and intellectual property, related to the Helimix branded shaker bottle for $38.0 million in cash. This commitment to innovation underpins the full-year 2025 adjusted EPS guidance projected to be between $2.38 and $2.49.

The strong balance sheet provides operational flexibility. As of the end of the third quarter of 2025, YETI Holdings had $164.5 million in cash on hand. That's paired with total debt, excluding finance leases and unamortized deferred financing fees, standing at $74.9 million. To be fair, the $300 million Revolving Credit Facility remained completely undrawn at that time, showing ample liquidity headroom.

The global omnichannel distribution network is a balanced mix of channels, showing strength internationally. The company is executing a transformational shift in its supply chain to support this global reach. Here's a quick look at the channel breakdown from Q3 2025:

The highly durable and high-performance product portfolio shows clear segment strength despite category headwinds. The core Coolers & Equipment segment is outperforming the Drinkware category in the U.S. market. The company's commitment to capital returns is also a key resource, with the 2025 share repurchase target increased to $300 million; year-to-date repurchases through Q3 2025 totaled $172.9 million.

You can see the segment performance clearly when mapping the Q3 2025 sales figures:

• Coolers & Equipment Net Sales: $215.4 million
• Drinkware Net Sales: $263.8 million
• Gross Margin: 55.9%
• SG&A Expenses as Percentage of Sales: 42.2%

YETI Holdings, Inc. (YETI) - Canvas Business Model: Value Propositions

Unmatched durability and premium quality for extreme conditions

• The company built its reputation on near-indestructible products, starting with its signature rotomolded hard coolers.
• They are on track to eliminate PVC from the entirety of their supply chain by the end of 2025.
• 100% of their packaging is targeted to be recyclable, reusable, or compostable by 2025.

Superior thermal performance in Coolers & Equipment

The Coolers & Equipment segment shows clear strength in the current fiscal year.

Broad product ecosystem from drinkware to bags and apparel

The product portfolio is diverse, though the Drinkware category faces market pressure.

• Drinkware sales decreased 4% in the third quarter of 2025.
• Drinkware accounted for 59.38% of total revenue in fiscal year 2024.
• International sales grew 14% in the third quarter of 2025.
• International sales represented approximately 20% of total revenue year-to-date in fiscal year 2025.

Customization options for corporate and personal branding

The Direct-to-Consumer (DTC) channel includes a dedicated Corporate Sales component.

Aspirational outdoor lifestyle brand identity and social status

This brand equity supports premium pricing, reflected in the company's margin structure and guidance.

Finance: draft 13-week cash view by Friday.

YETI Holdings, Inc. (YETI) - Canvas Business Model: Customer Relationships

The relationship YETI Holdings, Inc. cultivates with its customers is central to its premium positioning, heavily favoring direct engagement over traditional wholesale dependency.

High-touch, community-focused brand engagement

• The company's strategy emphasizes building a strong brand image, supported by stated values like 'Restore the Wild' and 'Innovate Thoughtful Products,' which helps keep the brand image strong.
• Selling, general, and administrative (SG&A) expenses in the third quarter of 2025 rose 5%, amounting to $218.1 million, reflecting ongoing commitment to growth investments that support customer engagement.
• The company is working to reinforce customer relationships through personalized communication, though specific loyalty program metrics for 2025 aren't public, the historical goal was to drive increased LTV, retention, and advocacy.

Direct customer feedback loops via the DTC channel

The Direct-to-Consumer (DTC) channel is the primary mechanism for direct interaction, giving YETI Holdings, Inc. control over the customer experience and data capture. This channel remains dominant in the omni-channel platform.

Here's a look at the channel performance as of late 2025 reporting:

The DTC channel's strength in Q3 2025 was notably driven by growth on Amazon Marketplace and Corporate Sales. This direct access allows the company to gather data to inform improvements in product design and materials, safeguarding customer satisfaction.

Digital content (films, stories) that supports the outdoor lifestyle

The brand reinforces its lifestyle connection through content, which supports the premium perception of its products. The company is planning a record pipeline of over 30 new products for release in 2025, a significant increase from the 24 products launched in 2024, demonstrating an investment in innovation that fuels content opportunities.

Building a loyal, repeat-purchase customer base

YETI Holdings, Inc.'s reputation for quality has earned it a loyal following, which is a core strength. The focus on the high-margin Coolers & Equipment segment, which surged 17% in Q1 2025 and grew 12% in Q3 2025, suggests that the most dedicated customers are investing in the core, durable gear. The company expects to generate approximately $200 million in free cash flow in 2025, which supports long-term brand investments that retain this base.

Dedicated corporate sales team for B2B relationships

Corporate Sales is explicitly called out as a contributor to the DTC channel growth in Q3 2025. This team manages relationships with businesses looking to purchase YETI products in bulk, often for gifting or employee recognition. The success of this team is reflected in the 3% year-over-year increase in DTC sales for Q3 2025. Key wholesale partners, which represent the traditional B2B relationship outside of corporate sales, include retailers like Dick's Sporting Goods, REI, and Bass Pro Shops.

YETI Holdings, Inc. (YETI) - Canvas Business Model: Channels

You're looking at how YETI Holdings, Inc. gets its premium outdoor gear into the hands of customers as of late 2025. The channel strategy is definitely shifting, moving toward more direct control over the customer experience, which is a smart play for margin protection.

The Direct-to-Consumer (DTC) channel is the powerhouse now, representing approximately 60% of sales for the last twelve months ending Q2 2025. This is a massive pivot from where the company stood a decade ago. For Q2 2025 specifically, DTC sales were $248.6 million, a slight decrease of 1% year-over-year, while Wholesale sales were $197.3 million, down 7% in the same quarter. This channel mix is key to supporting the company's gross margins.

The overall channel performance for Q2 2025 shows the DTC strength, even with a small dip in that quarter's revenue:

E-commerce platforms are the engine of the DTC segment. YETI.com is the primary digital storefront, but the results also point to strong engagement on platforms like Amazon Marketplace, which is folded into the DTC reporting structure. The company is focused on building consumer relevance across these digital touchpoints.

For physical retail, YETI-owned stores act as experiential hubs. As of early 2025, the company operated 23 retail stores primarily located in the U.S., with 1 international store in Calgary, Canada. These flagship locations help reinforce the premium brand image directly with the end user.

International expansion is a clear growth priority, and the numbers show real traction there. For the six months ending June 28, 2025, international sales grew 2% to $78.1 million. Management noted exceptional performance in the UK and Europe, alongside strong end-user demand in Canada and Australia. For fiscal year 2025 to date, international sales represented approximately 20% of total revenue. The focus is on developing optimal omni-channel distribution in these key markets.

The penetration in specific international markets is detailed below:

• International Sales Growth (Q3 2025): 14%.
• Key International Markets: UK, Europe, Canada, Australia, and Japan.
• Japan Retail Doors: Scaled up from 17 to over 270 retail doors.
• Supply Chain Diversification Goal: Less than 5% of U.S. market COGS to be sourced from China by end-2025.

Wholesale partners remain important, covering specialty retailers, sporting goods stores, and mass retailers, though this channel faced sales declines in Q2 2025. The company is working with these partners to optimize inventory, especially given the ongoing supply chain transition.

Finance: review Q3 2025 international sales growth against the 20% FY target by end-year.

YETI Holdings, Inc. (YETI) - Canvas Business Model: Customer Segments

The customer base for YETI Holdings, Inc. is segmented across core outdoor pursuits, everyday premium users, and growing international and business channels.

Affluent outdoor enthusiasts (hunters, anglers, campers) are primarily served through the Coolers & Equipment category, which showed strong performance, growing 12% year-over-year in the third quarter of 2025, reaching $215 million in net sales for that period. This segment is foundational to the brand's premium positioning.

Casual consumers seeking premium, durable everyday products are heavily represented by the Drinkware category, which generated $264 million in net sales in the third quarter of 2025, despite a 4% year-over-year decline. For the first half of fiscal year 2025, Drinkware sales totaled approximately $442.0 million.

Corporate and B2B customers for customized gear are captured within the Direct-to-Consumer (DTC) channel, which saw sales increase 3% to $289 million in the third quarter of 2025, specifically citing growth in Corporate Sales. The DTC channel, which includes Corporate Sales, now represents 60% of the trailing twelve-month revenue as of Q3 2025, a significant increase from 8% in 2015.

International consumers in expanding markets like Canada and Australia represent a key growth vector. International sales in the third quarter of 2025 grew 14% to $100.4 million. This segment now accounts for 21% of total sales as of Q3 2025. The company has established presence in Canada and Australia, alongside the UK and Europe, and launched in Japan in the second quarter of 2025. For the full fiscal year 2025, international sales are projected to grow between 15% and 20%.

Brand loyalists who value quality over price (price inelasticity) are supported by the brand's ability to command premium pricing, evidenced by the projected fiscal year 2025 Gross Margin landing between 56.5% and 57%. These loyalists are drawn to the brand's commitment to high-performing, exceptional products.

The following table summarizes the channel and product segment contribution based on the latest reported quarterly data for Q3 2025:

The composition of the core consumer base is further defined by their purchasing channel preference:

• The DTC channel now accounts for 60% of trailing twelve-month revenue as of Q3 2025.
• Wholesale channels represent the remaining 40% of trailing twelve-month revenue as of Q3 2025.
• International sales represented 19% of total net sales in fiscal year 2024.
• The company plans to launch over 30 new products in 2025 to engage the customer base.

YETI Holdings, Inc. (YETI) - Canvas Business Model: Cost Structure

You're looking at the cost side of the YETI Holdings, Inc. equation, which is heavily influenced by their commitment to premium products and the ongoing, expensive transition of their global manufacturing base. This structure reflects the trade-off between high product quality and the necessary investments to secure future supply chain resilience.

High Cost of Goods Sold (COGS) due to premium materials and tariffs is a major factor. The inherent cost of using premium materials keeps the COGS high relative to lower-cost competitors. This is compounded by external pressures, notably tariffs. For the full year 2025, management projected an approximate 220 basis points net unfavorable impact on operating income due to higher tariff costs versus the prior year. To give you a sense of the impact, in the third quarter of 2025, the tariff impact was a net $0.14 per share. The company's adjusted gross margin for the third quarter of 2025 settled at 55.9%, a decrease of 230 basis points, primarily driven by these tariff costs and a lower mix of the Drinkware category. For the latest twelve months ending September 27, 2025, the Cost of Goods Sold was reported at $773.1 million.

The strategic imperative to de-risk manufacturing means significant capital outlay. The significant investment in supply chain diversification and technology is clear in the capital plan. Capital expenditures for the full year 2025 are projected to be approximately $50 million. This spending is explicitly focused on advancing technology, launching innovative products, and strengthening the supply chain, which includes accelerating the shift of U.S. Drinkware production out of China.

Maintaining the premium brand image requires substantial outlay on marketing and brand-building expenses. While the company is disciplined, investment is constant to support new product launches-over 30 new products were planned for 2025. The marketing spend is shifting, with a focus on moving some advertising spend 'up funnel' to create a combination between brand awareness and product marketing, rather than solely focusing on lower-funnel transactional advertising. Interestingly, in the third quarter of 2025, marketing and advertising expenses were actually lower by $2.0 million compared to the prior year period, which helped offset other SG&A increases.

Distribution and fulfillment costs for the growing DTC channel are managed through scale and channel mix. Direct-to-Consumer (DTC) sales represented 56% of total sales in the first quarter of 2025. While DTC is growing, the company noted that in the third quarter of 2025, distribution and fulfillment expenses were lower due to higher sales, suggesting some operating leverage was achieved in that period. In the second quarter of 2025, DTC sales reached $248.6 million.

Finally, the SG&A expenses, including technology and employee costs, reflect ongoing investment in future growth. Adjusted Selling, General, and Administrative expenses for the third quarter of 2025 were $205.9 million, representing 42.2% of adjusted sales. This increase from the prior year was primarily due to growth investments related to technology and facilities, plus depreciation and amortization expense from capital investments. For context, the full year 2024 adjusted SG&A was $767.6 million, or 41.7% of adjusted sales.

Here is a snapshot of key cost-related metrics as of the latest reported periods in 2025:

The cost structure is clearly one of a premium brand actively managing external headwinds while making necessary, large-scale internal investments. You see the tension between the tariff impact on gross margin and the ongoing SG&A spend supporting technology and supply chain transformation.

• Accelerated supply chain diversification aiming for less than 5% of U.S. Drinkware COGS from China by year-end 2025.
• The company increased its share repurchase target for 2025 to $300 million.
• International sales growth was 14% in Q3 2025, indicating investment in global expansion is ongoing.

Finance: draft 13-week cash view by Friday.

YETI Holdings, Inc. (YETI) - Canvas Business Model: Revenue Streams

Sales of Drinkware (e.g., tumblers, bottles), a key volume driver

For the three months ended September 27, 2025, Drinkware sales were $263.8 million. This represented a 4% year-over-year decrease in the third quarter of 2025. In the full fiscal year 2024, Drinkware generated $1.09 B in revenue. Drinkware represented approximately 59.79% of YETI Holdings total revenue in fiscal year 2024.

Sales of Coolers & Equipment (e.g., hard/soft coolers, bags), a high-growth category

Coolers & Equipment sales increased 12% year-over-year in the third quarter of 2025, reaching $215.4 million. For fiscal year 2024, this segment generated $698.61 M in revenue. This segment accounted for 38.18% of total revenue in fiscal year 2024. The growth in the third quarter of 2025 was primarily driven by strong performance in soft coolers and bags.

Direct-to-Consumer (DTC) sales, providing higher margins

Direct-to-consumer channel sales increased 3% to $288.7 million in the third quarter of 2025. For the trailing twelve months ending September 27, 2025, the DTC channel accounted for 60% of the company's total revenue. In fiscal year 2024, DTC channel sales were $1,087.6 million, an increase of 9% from the prior year.

Wholesale sales through third-party retailers

Wholesale channel sales saw a modest 1% increase to $199.0 million in the third quarter of 2025. For the trailing twelve months ending September 27, 2025, the Wholesale channel represented 40% of total revenue. Wholesale channel sales for the full fiscal year 2024 totaled $742.3 million, up 12% year-over-year.

Customization and corporate sales revenue

Corporate Sales contributed to the growth in the DTC channel in the third quarter of 2025. The company noted expanded customization capabilities across Hard Coolers as a support for corporate sales. In fiscal year 2024, the segment labeled Product and Service, Other generated $37.10 M in revenue.

Here's the quick math on the Q3 2025 revenue components:

The company is actively managing its channel mix, which is a key driver for margin control. You can see the channel contribution based on the latest trailing twelve months data:

• DTC channel contribution to TTM revenue: 60%.
• Wholesale channel contribution to TTM revenue: 40%.
• International sales represented 19% of total net sales in fiscal year 2024.
• International sales grew 14% in Q3 2025.

What this estimate hides is the near-term pressure on the Drinkware segment in the U.S. market, which management expects to return to growth in Q4 2025.