Competitive PressureYETI management finally acknowledged competitive pressures in drinkware on its Q4 earnings call, which suggests the competitive onslaught in the segment might be worse than originally thought.
Market UncertaintyA HOLD rating is warranted, given near-term uncertainty regarding tariffs, competitive intensity, and consumer demand.
TariffsYETI still plans to have 80% of sourced drinkware for the U.S. out of China by the end of 2025, estimating a less than $10mm headwind to costs from initial 10% China tariffs.