YETI Gross Margin Analysis

YETI’s gross margin of 55.3% means the company keeps about 55 cents of each dollar of revenue after paying for the direct costs to produce its products, such as materials and manufacturing.

That figure sits well above the sector median of 36.5% for Consumer Cyclical companies, placing YETI in the 81st percentile among its sector peers. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 5.3%, dropping from 58.4% in the prior quarter to the current 55.3%. A high gross margin combined with a recent decline suggests that while YETI maintains strong pricing power and cost control relative to peers, the erosion may signal rising input costs or competitive pressure that warrants monitoring. This combination presents both an opportunity—the high level supports profitability—and a risk that the downward trend could compress future earnings. The NEUTRAL overall verdict is supported: the strong margin level justifies a positive view, but the quarterly contraction introduces enough uncertainty to avoid a bullish stance.

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