YETI: Strong Sales Defy A Weak Macro, But Watch Out For Channel Shift (Upgrade)

YETI Holdings, Inc. is upgraded to a Buy after strong Q1 sales and a resilient U.S. recovery, despite the stock being down ~10% YTD. YETI's mid-50s gross margins and growing direct-to-consumer mix support profitability and scale, distinguishing it from many retail peers. International sales are accelerating, outpacing U.S. growth but still offering significant runway, currently comprising a low-20s percentage of total sales.