Adjusted EPS declined 6% to $0.66, including a $0.07 net tariff cost impact.
Adjusted gross profit decreased 4% to $257.6 million with a slight margin improvement to 57.8%, aided by product cost optimization and selective price increases but offset by higher tariffs.
Cash increased to $269.7 million; 745,000 shares repurchased for $23 million in Q2 under a $450 million authorization.
Coolers & Equipment sales decreased 3% to $200.6 million, with growth in hard coolers offset by declines in soft coolers.
Direct-to-consumer sales decreased 1% to $248.6 million, representing 56% of total sales, with strong Amazon and corporate sales offset by softer e-commerce demand.
Drinkware sales declined 4% to $236.4 million, impacted by a promotional market and supply chain constraints.
International sales grew 2% to $78.1 million, led by strong performance in Europe and expansion in Japan.
Operating income decreased 9% to $73.2 million (16.4% margin), and net income decreased 7% to $55.2 million.
Wholesale sales declined 7% to $197.3 million, driven by U.S. Drinkware weakness and cautious ordering internationally.
YETI reported Q2 2025 sales of $445.9 million, down 4% year-over-year, slightly below expectations due to cautious consumer and retail partner spending.
Impact of Tariff Delays and Preloading on Asian Imports
Asian appliance imports increased over 20% in the first half of 2025 due to delays in tariff implementation, creating significant short-term disruption.
Estimated 60 to 90 days of excess Asian inventory in the system as of May, with a gradual flow-through expected as tariffs take full effect.
Tariff delays have extended the preloading period, impacting promotional intensity and margins into Q3 and Q4.
Management believes the full impact of tariffs will benefit Whirlpool long-term, as the company is structurally positioned to capitalize on trade policy shifts.
Adjusted net loss was $26.7 million or $0.48 per share, compared to adjusted net income of $5.6 million or $0.10 per share in Q2 2024.
Cash and cash equivalents stood at $49.2 million with total debt of approximately $256.6 million as of June 30, 2025.
Gross profit was $62 million with a gross margin of 32.1%, down from $104 million and 42% margin in Q2 2024, impacted by tariffs, inventory reserves, and royalty shortfalls.
Negative adjusted EBITDA of $16.5 million versus positive $27.9 million in the prior year quarter.
SG&A expenses increased to $82.3 million from $77.9 million in Q2 2024, which included a nonrecurring net benefit of $1.5 million last year.
Total net sales for Q2 2025 were $193.5 million, a 22% decline compared to Q2 2024, primarily due to U.S. tariff-related sales disruptions.
Dafinchi