YETI Holdings, Inc. (YETI) Earnings Call Transcript & Summary

All right. Good morning, everyone. Welcome to YETI's 2026 Investor Day. My name is Arvind Bhatia, and I lead Investor Relations at YETI. Thank you all for joining us, whether you're here with us in Austin or tuning into our webcast. We have an exciting day ahead for all of you. Now there was one part of the agenda that we tried to innovate but could not, our forward-looking statements. Now, those of you who join us on our earnings calls and have seen our SEC filings, you will recognize these. They're durable, dependable, if you ask me, built to last forever. So pretty much on brand. I'll give you guys a moment to review the information on the slides. While you do that, I do have a few quick announcements for you. Before we begin, please silence your phones. There will be a Q&A session at the end. So if you could refrain from asking any questions until then, that would be great. We'll break for lunch around noon. Following that, you'll have a chance to see some of our upcoming products if you're here in Austin. And finally, if you've signed up for the Innovation Center Tour, shuttles will depart around 12:45, and your group number should be on your badge. And with that behind us, let's get to the more interesting part of the day. Thank you. [Presentation]

All right. Good morning, everyone. Thanks for joining us today. Welcome to YETI for those in person and those joining via webcast. We're excited to get going, and I want to welcome you and also talk about why we invited you to Austin. YETI is entering a new phase, one where we accelerate growth, expand profitability, creating a powerful engine for value creation. And we want to show you in this room with the people who are building it, what that means for the next several years. Before I go further, I want to acknowledge the YETI team. Several of them are here today. You're going to hear from many of them on the stage. But everything we do is a result of their work, their commitment and their belief in this brand. They're the reason we're in this position, the reason this brand means so much to so many. So turning to the theme of today. The theme of today is built for the wild. It's not new, and it's not simply a nod to where we've been. It's where we're going. It stands the test of time. And it's what makes this team and this brand stand apart. It's the story of YETI, and I'm immensely proud of it and the people behind it. We spent 20 years building a brand with a field-tested and enduring foundation, products that perform, a business that has proven to get stronger through time regardless of the environment. But today is not about celebrating the last 20 years. It's about showing you why the next chapter will be stronger. As we enter the next decade, we're focused on 4 things: the next $1 billion of revenue, the next $1 billion platform, $1 billion outside the U.S. and the next $1 billion plus of free cash flow. Everything today connects to those 4 ideas. And today, we intend to prove, not just show, but prove and describe how we get there, moving with more speed, more conviction built on an incredibly strong foundation. It's the path to building a larger, more capable and more durable global company, a company with greater reach, expanding audiences, broader product platforms, a longer runway for growth, enhanced margins, steady free cash flow and the ability to generate in a predictable way, increasing value over time. Now I think most of you and most investors understand that YETI is a strong brand. What I want to prove today is something different. We've earned the right to chase aggressively being a truly global company. For most of our history, we are grown by protecting the brand, earning trust one decision at a time. That discipline is still here. That hasn't gone. But that same discipline has built the capability and the confidence to move at a different pace. Bolder about what we build, bolder about where we sell it, bolder about how far this brand can travel. Looking back, we got a lot right, but not everything. When I look back at COVID, I think what an incredible time of growth and record results. We took care of our people. We scaled the business. We transformed our D2C and wholesale. But we missed some moments. We missed some moments to invest more deeply, more aggressively for the future, the opportunity to react fast. So we learned from that. And when the global tariff risk emerged, we applied that lesson to move fast and to make real impact. Our team accelerated our supply chain transformation and in less than 20 months, shifted 90% of our Drinkware capacity. That's a massive, massive opportunity. And it created quality productivity opportunities, but it also built muscle. That's our team at its best. As you will see today, we've applied that bias to speed to innovation and to our global commercialization and the global commercialization opportunity. We'll come back to that a bit later. It's the kind of organizational capability that compounds the ability to move fast, execute under pressure and emerge stronger. That same muscle that transformed our supply chain is now being applied across the full business through a program we call Project Upcycle. It's a structured enterprise-wide initiative targeting $100 million of productivity improvement, not as an aspiration, but as a prioritized, governed and measured commitment. It's already underway, and it's already delivering results. When I step back, the point is we've earned the right to push harder because we've built the capability and the team. Many of you here in this room saw some of that team last night, and you'll see much of it today. So now when I turn to today. We've organized today around 4 pillars: brand, innovation, U.S. commercialization and global expansion. Each one of those areas is going to be presented by the leader who's building it. Bill is going to show you that our brand has permission and room to run and that our brand is a compounding advantage. I think some of you got to see a little bit of that last night. And Hannah and Layne are going to prove out our innovation engine, how we're turning iconic products into scalable platforms across Drinkware, Hard Coolers, Protective Cases and Bags & Soft Coolers. Stuart is going to show you a more sophisticated, more productive commercial engine in the U.S. and opportunity to meet the unmet demand. And then David and Mitch are going to talk you through a proven go-to-market playbook that's scaling faster and more systematically around the globe. Scott will come up and he's going to bring it all together, the financial model, the detail on Project Upcycle and what we're committing to. That's the day. But I'm going to sneak in there and I'm going to add a little bit of color on the future beyond the model that gets us fired up about stacking on top of this plan. But I want to be very clear about one thing. Today is not about dreams. Everything you will hear today is in flight and being actioned, including those items that are beyond the plan. Put it all together, and it's a compounding system, one we're confident in and committed to. So when I step all the way back and people ask me what kind of company YETI is, I usually start with a simple belief. We refused to accept that durability, performance and design had to be trade-offs. That belief built the first cooler in Driftwood. It built all the products that followed, and it continues to shape how we run the business today. I've said many times before that product is our heart and brand is our soul. What's rare about YETI and what is genuinely difficult to replicate is both in balance. Unparalleled product with an aspirational brand, durable enough to be the foundation of everything we're building next. This is what has allowed YETI to expand without losing who we are. Good brands have customers. Great brands turn ownership into advocacy. That's what we do, from stickers on trucks to tattoos to wedding cakes. YETI does more than live on shelves. It lives inside communities and it shows up in meaningful moments. People don't just buy our product. They carry the brand forward. That's why we say we're growing by communities, fueled by commitment. Getting into brand. One of our truth is we don't define people's wild. You heard a little bit of this last night. People define it themselves. Your wild might be a duck blind, it might be a weekend soccer tournament, an early morning surf session, a job site, a tailgate, a fishing boat, a commute to work. We're earning our place in more moments, more often with more people. It's incredibly powerful done right, but it's also easy to get wrong. Most brands eventually face a choice. They scale and they lose what made them special or they stay rooted and they fail to grow. What we've done over 20 years and what we're going to do going forward is we're going to do both, preserving depth while expanding breadth. We earn relevance by speaking the language of our customers, showing up where it matters to them, connecting with the people they respect and value. It's how this brand was built, and it's how we believe it should keep growing. It's not random. It's deliberate. That matters because as we enter new spaces, it's not a push. It's a pull from the community by the active deliberate choices we make. As you're going to hear from Bill, community is the brand. And our communities introduce YETI to who and what's next. It's powerful and it's hard to replicate. What that gives us is something incredibly valuable, permission, permission to enter new moments, permission to build new product platforms, permission to broaden the brand without turning the brand into something average. But that permission has to be earned and it has to be protected. I think about that every day. Every decision we make is either a deposit into the brand or withdraw from it. As you scale, you're doing a little bit of both. When I joined YETI over 10 years ago, roughly 40% of our sales came from the state of Texas, and we were about 1/5 of our current size, truly a brand born along the Gulf Coast. As we scale beyond regional strength, being pulled into national and specialty retailers asked for on yeti.com, shopped on Amazon, all the way to becoming a global brand, we worked hard to keep our roots in our original communities while investing behind growth, showing up where it mattered, broadening access while staying true to the brand. And the net result was additive and scale, breadth and depth on display. Bill is going to take you deeper, but permission is what makes boldness possible. It's the license behind the next $1 billion everything. You don't get to push with a brand people don't trust. We've earned that trust. Now I'll talk a little bit about innovation and our second key pillar. Growth doesn't just come from entering new categories. It comes from discovering opportunities within the platforms we've already built. It starts with the core, finding the untapped and unmet demand. As you're going to hear today, our Home & Hydration and Gear & Equipment platforms remain durable growth engines in their own right, not just a base to build from. We expect them to be drivers of growth, customer acquisition and brand expansion. When coupled with Soft Coolers & Bags, we see the opportunity clearly. So let me frame the 3 platforms as we see them. Drinkware, which we internally refer to as Home & Hydration, represents roughly 60% of our net sales, and it's proving itself a durable and scalable global growth platform. We've been clear about the headwind and drag on growth in 2026, but it's been more than offset by the global diversification and innovation across the rest of the platform, hydration to everyday use stackables, like the ones in front of you. I'd encourage you to separate them, drink out of them, you'll understand why people buy multiples of our products. And we've moved to food storage and cookware, and we'll talk more about that when Hannah comes up. The products driving the headwind will largely lap by year-end, resetting the base heading into 2027. Underneath the noise, the platform is healthy and expanding, and the partners who've embraced our expanded portfolio are seeing the benefits. Hannah is going to walk you through why we're confident in Home & Hydration is a long-term trajectory. Now turning to Coolers & Equipment and within Coolers & Equipment, Gear & Equipment. From our personal sized Roadie Hard Coolers to the recently expanded GoBox family of protective cases, this is where YETI started, and there's meaningful innovation and potential ahead. And finally, on Bags & Soft Coolers. This is where we're choosing to be aggressive at scale. The reason we believe this has become a meaningful platform for YETI is because we already have the assets required to win, the credibility and thermal performance, the authority and durability and design, a brand that moves without asking the consumer to make a leap. We're already being pulled into adjacent use cases, travel, work, sport, everyday routines. It's not a stretch. It's a continuation. We said before the scale of Bags & Soft Coolers is massive. Since 2028, (sic) [ 2018 ] our platform has tripled in size, and we're just getting started. From our earliest Panga Submersible duffles, which we made simply, frankly, because we could, to the latest Daytrip, Camino, Crossroads and Palo backpacks. This product platform is scaling fast. The strategic point is simple. We're not chasing growth by stretching the brand. We're building growth by applying the brand where we've earned the right to compete. And that's exactly how Bags & Soft Coolers becomes our next $1 billion platform. And make no mistake, Gear & Equipment is right behind it. You earn trust with exceptional products. And with that trust, consumers reveal unmet needs and you expand thoughtfully around those opportunities. The key word is thoughtfully. We have no shortage of ideas. My inbox is full of them. Frankly, many of you have given me some. You're welcome to drop a few off before you leave today. The challenge is deciding which opportunities deserve our attention because every decision has to strengthen the brand. Every decision has to create consumer value. Every decision has to earn its place. Hannah and Layne are going to show you how our innovation system works and why we believe the engine will drive meaningful potential. Turning now to our third pillar. Candidly, this may be one of the most underappreciated opportunities in the business. Over the past several years, as you've seen, we've dedicated ourselves to building a strong innovation engine while stoking the brand. It's enabled us to make more products today than in any time in our history. And in some cases, our innovation has outpaced our commercialization. One phrase I hear more often than I'd like is I didn't know YETI made that. To be clear, I don't take that as a compliment. It's an opportunity. I guess some of you experienced that last night during your store walk. In fact, I had a couple of you come up and say that last night during our store walk. It's the gap between what we've built and what our consumers realize we have, and that gap is real growth and real unmet demand. It relies on getting the right product in front of the right consumer in the right channel at the right time. It's there, and we're going after it. That's what our commercialization work is about, not simply launching products, but scaling them, extending them, matching them to consumer occasions, giving each channel a clear role. The unique thing about YETI is the number of ways we reach a consumer from a fly shop to a hardware store, surf shop to a home goods store, national and specialty retail, Amazon, yeti.com, credible B2B business and our own stores. That diversity is a competitive advantage, well executed. And there remains opportunity in the U.S. to continue to be where the consumer shops. When we look at our channel expansion through the lens of complementing our existing go-to-market and intercepting new consumers, we've seen what happens when we get that right. And that's the kind of opportunity we're focused on now, making the system more precise, the assortment more productive, making launches work harder, ensuring the innovation we create has the commercial support to scale. Stuart is going to walk you through exactly how and why that commercial engine in the U.S. works. Now let's talk about our fourth pillar, global expansion. We're just at the start of a massive opportunity. International has evolved from an emerging business into a core part of our growth model. The brand has proven it travels, and we have a repeatable playbook that is scaling faster as we enter new markets. It's awesome to see. I still remember being asked years ago if YETI had any opportunity outside the U.S. And frankly, even at one point outside of Texas. Global revenue has grown from 2% of our business in 2018 to over 20% today. But what's more important than the numbers is the model behind it. Every primary market we've entered has scaled faster than the one before, Canada, than Australia, then Europe, each one built on the learning, the infrastructure and the brand assets from the previous market, increasing speed of execution and building confidence in a repeatable playbook. And much like how we build communities, we're being pulled into markets. Our brand, our ambassadors, our partners, our social media have made demand and frankly, desire more visible. We can see where people are finding us, where the brand has heat before we fully built out the market. Once we see the signal, the real work follows, building local capabilities, partnerships, teams and an operating model to support that demand over time. That's what turns international into a scalable growth engine. We now have a clear way to identify where YETI should go next, how we should enter the market, the capabilities that we need and how to scale the brand for the long term. Market by market, we're building conviction. We enter each one a little bolder than the last because the last one worked. That's the model getting stronger. David and Mitch are going to show you exactly what that looks like and why we believe international will become an even larger share of the business. I will promise you their conviction will be obvious. Turning to the system. When you step back and look at the whole picture, this is what we see, an iconic brand that continues to earn relevance with consumers globally, an innovation engine creating durable product platforms, a commercial engine translating innovation into sustained growth and an international playbook expanding our reach around the world, all complemented by a financial model designed to convert that growth into increasing profitability, strong free cash flow and disciplined capital allocation. That's the system, designed to compound, designed to create shareholder value, designed to make the next chapter of YETI stronger than the last. So now before I turn it over to Bill, let me give you a glimpse of where we land because the growth story only matters if the model beneath it delivers. We're creating a clear path to increasingly diversify our U.S. core business, international expansion, new product platforms. We built the model to work up and down the growth curve, the payoff of what this brand, this portfolio and this team can deliver. But I want to come back to Project Upcycle because it's central to how we bridge top line growth to sustained margin expansion and operating income growth. We've shown over time the ability to absorb the shocks, rebuild our margins and turn them into the energy that powers us. Our gross margin resilience is tangible evidence here, but we aren't satisfied. I want to be clear about what Upcycle means. This is not a target we aspire to. It's a discrete commitment with prioritized initiatives, enterprise accountability and rigorous governance and measurement. Every work stream has an owner, a time line and a financial target. That's how we run it. And the purpose of Upcycle is to amplify our future to build a more productive operating model, one that does 2 things at the same time. First, it funds the growth you're hearing about today in brand, innovation, commercialization and international. Second, it expands margins sustainably through disciplined execution, not through onetime actions. Fuel the investments, expand the margins at the same time. That's the commitment. Scott is going to take you through the full financial detail and exactly what we're committing to. But now I want to wrap with the YETI that most investors know, which is the brand that built an iconic brand and the company that built this iconic brand. The YETI we're building now is something made for more, a company that takes that same brand and scales it repeatedly across platforms, across channels and around the world. That's the difference between being a successful brand and a compounding business. The capabilities beneath us are stronger. The playbook is clear. The opportunity is broader. The path ahead is bolder, faster and built to last. We're going after it. The next $1 billion of revenue, the next $1 billion product platform, $1 billion outside the U.S. and $1 billion plus in free cash flow. That's our plan. And I'm excited for the team to show you how. With all that said, let's get into it. I'd like to welcome Bill to kick us off with the YETI story, where we've been, where we're going. You'll enjoy it. Thanks.

Thanks, Matt. Appreciate you. Hello, everyone. For those that I didn't meet last night, my name is Bill Neff. I've been at YETI for almost 11 years. I started in community marketing when I got here in 2015, spent time in the first 5 years in brand and community. And then about halfway through my tenure, Matt asked me to spread my wings a little bit. I took a role in product, took a role in the commercial side and worked on the European business, getting that marketing engine up and running. About 2 years ago, Matt asked me to step back into marketing. And so I've been leading marketing for a little over 2 years, which I'm truly grateful for, honored to be in this position. So Ultimately, nothing compares to what this brand, I think, has done and ultimately what it can do. And I'm thrilled to have the chance to tell you all about it today. I believe YETI is where the brand really distinguished ourselves with this brand. So what am I going to talk about today? So I'm going to talk about a little history, not sure how many people actually know how this thing all started. I'm going to share our philosophy, kind of, how we think. And then I'm going to give you a firsthand look at our playbook and how we run things. So how do we get here? How does a brand go from a small Driftwood Texas cooler company founded by 2 brothers in their mid-20s, Roy and Ryan Seiders, to a global cross-category leader. How do you build a consumer following that's sort of magnetize to the brand? Well, truthfully, it just starts with a playbook. And we've been following this playbook since day 1, and it continues to serve us time and time again, community after community, country after country. But I thought I'd start today taking down a little bit of memory lane. I'm going to show you our first 30-second commercial we ever did and follow that by our latest 60-second spot we ran this spring. [Presentation]

So we have come a long way with this brand. And when I watched the first 30-second commercial giggle, we, kind of, laugh, kind of, how old it is and everything. But the truth is the foundation that was forming around that 30-second spot, it still holds true today, and it serves kind of as a launch pad for all that's to come and all that has come since then. But where we are today wasn't the vision of our founders. It was way more than they ever imagined. They just had this open mind and a relentless determination to make the best product out there. So Roy and Ryan, there were 2 brothers. They grew up in an entrepreneurial household. And there was a belief in that household that if something doesn't work, fix it. And if it doesn't exist, build it. So Ryan graduates from Texas A&M and he starts a fishing rod business. And Roy graduates from Texas Tech and he starts a boat business. And Roy was making these premium shallow water boats, similar to the one down on our store floor, and he wanted a cooler that would sit on the bowel of the boat that was strong enough you could stand on, so you could elevate yourself for site casting. And at the time, there was no cooler that was strong enough. They all broke, they tipped over. They didn't match his vision for what he saw in this boat he was building. And so if it doesn't exist, build it. So Roy starts molding a cooler to kind of match his needs for this boat. But as he's doing this, his vision for building a boat business, kind of, turned to building a cooler business. And that's how YETI was born. And our founders weren't trying to build this outdoor brand. They were just laser-focused on building better gear. They were hard on their gear. They were laser-focused on better gear. And their passion and commitment to deliver that unparalleled durability of performance and design for products that didn't yet exist is still what drives this company today. But the gift that Roy and Ryan gave us and what Matt continues to drive hard today is this unlimited possibility to what YETI can be. And it's this mentality that's rooted in curiosity, craftsmanship, this consumer centricity, and we're going to talk a lot about today. Stuart is going to talk about that. But it's also this refusal to accept just good enough. We've never chased trends or marketing flash. We've asked one question over and over again, what problem needs solving. And so now over the last 20 years, people started using our products in places we never would have guessed. And not because we told them to, but because incredible product for people who demand really great gear, they start to travel on their own. And so we've been called from the boat to the blind to the mountains and now far beyond. And we earn this trust in more communities because we meet people where they are. We listen to their needs, and we listen to their wants, and we naturally become part more of their moments. And that same person might be a hunter one weekend. He might be coaching his daughter's Lacrosse game or team the next weekend. He's commuting to work on a Monday and then he's standing around a Campfire with friends on a Friday night. We don't define that person, but we strive to make our products what they choose to carry with them across their lives. But earning more places and more communities with more people and more moments and more geographies, it does not happen by chance. We don't just cross our fingers and hope it happens. It's 100% deliberate and it's 100% scalable. There's a method to what we do, and it's this repeatable playbook that continues to grow organically. And it's how we got from that first fishing commercial I showed to where we are now, and it's how we'll keep leveling up from here. So let's talk about our philosophy. As a brand, YETI has this unique ability to both welcome in new audiences while we go deep in the passions of those we already have. And we do this intentionally with a really strong sense of who we are. It starts how we build durability and performance in our products. It always starts with our products. But then it expands as we join one community after the next. And as a brand, we're anchored around this philosophy that balances what we call breadth and depth. And I'll tell you what that means through an analogy. The analogy makes sense to me. Hopefully, it makes sense to you. So personally, I'm amazed by dense forests. I was just in Abercrombie State Park up in Kodiak, Alaska about a month ago. And when you walk through a forest, you notice everything above ground. You noticed the size of the trees and the trunks and the branches and the moss rolling off those branches, the canopy in the forest. What people don't think about or they don't see is this massive root system underneath it all. That's what gives the trees the foundation, the strengths and nutrients to keep growing. I -- we believe that brands work the same way. And you only see part of the picture. And as the brand grows, there could be temptation to keep adding more above ground, more stories, more ideas, more ways to get bigger. And if you're growing and you have momentum, you should try. But sustainable growth depends on continuing to tend to the roots, the things that made the brand relevant and important in the first place. Breadth is what you see when you look all around all the ways YETI shows up in the world. Depth is the system below ground, the work we're constantly doing to make sure that as YETI grows, we remain relevant, meaningful and important to the communities that we serve. And you need both if you want to be a brand that thrives for the long term. This breadth and depth philosophy, it has -- it served us really well. It's helped us navigate uncertainty. It's helped us find more communities where a product matters. But breadth and depth, it isn't just something we sort of made up, so it looks kind of nice, and I can talk about it and put on a slide presentation. It comes from like a real human truth. Think about yourselves. When dealing with decisions that matter, people trust other people, not algorithms. Now if you want to get into something new, you might start with a little research online. But if you're getting into golf, chances are you have a person in your own human network, that plays. And you ask them, hey, how do I -- what's the best way to get started? And if you're in the market for a new smoker, you want to get into barbecue, you call that friend that makes that crazy good rack of ribs or stays up overnight smoking a brisket. And if you want to go on a fishing trip, you ask that friend or that friend that knows a friend, who's on the water every weekend. Marketers like to think about advertising. We love to think about advertising as marketers. And we do plenty of advertising here at YETI. But the definition of advertising is rooted in trying to interrupt the daily flow of someone to gain their attention. And again, we do loads of that. But we also work incredibly hard and would rather be part of the person's natural conversation. And we strive to be a part of that conversation because that's how trust moves, person-to-person, community to community. And exactly why we built YETI around the word of mouth that travels through every group of people. And this is the roots part I was talking about. In fact, we have 4x as many community marketers on our team than we do brand marketers. Brand marketers, they drive our awareness. We love our brand marketing team. They do the spots and all stuff. But community marketing, it drives our relevance. You saw a little bit of it last night. The only way to really understand these consumers and their passion, you have to be a part of the communities. You have to be a part of those conversations, and we work really hard on that. So that's great, Bill. How does that all work? Okay. Well, this is our consumer model. And we built it in an extremely deliberate way. And inside every community, there's someone everyone trusts. We talk a lot about finding trust through trusted sources. You heard Joe say it unprompted last night. We talk about, we say those words, trust through trusted sources. And this may be a hunting guide, it may be a world-class angler, it may be a pro-pitmaster. And we find these people, we call them the elites, and we explore our relevance with them. And this is where we start to earn the trust. And if you earn the trust of the elites, credibility naturally starts to extend outward to those around them and a broader audience. And so it cascades from the elites to this group we call the enthusiasts. And enthusiasts are people who live and breathe and activity. We all know these people in our networks. It might be you that are just eaten up with a pursuit and any free time they have is spent on it and they're talking about it all the time and you get bored with them talking about it. But this is where energy, when those 2 groups come together, it really starts to build. And as these groups start advocating for YETI, word of mouth naturally moves down to even a broader group, we call the participants. And these are the ones that maybe dream about these activities more than they have time to actually do them. I'm personally a participant in 4 or 5 of the communities that we work with. And once these groups are buzzing, the broadest group is the spectators. And they're just feeling the energy and they just want to be a part of it. And at each step, we're listening and we're learning how people are using our products. And as we're taking in all this engagement, we sometimes notice people using our products we never thought would use our products or we noticed they're using it in ways we never would have expected. Other times, communities actually come to us with an opportunity to build something together. Either way, open doors, open minds, and we earn the right to grow because we always start with finding trust. In fact, 91% of our YETI owners say YETI is a brand that they trust, and that's really important to us because we work really hard on that. I'll give you an example of this happening. So this is probably the first one. So OARS. OARS is an expedition rafting company known for their extended trips down the Grand Canyon. And there's a passionate community of whitewater rafters that YETI discovered were using our coolers on their expeditions. Roy and Ryan, they weren't whitewater people they didn't design with whitewater in mind. I'm not even sure they've been on a whitewater trip. And it would have been easy for them, just a high 5, that's cool. They're using our coolers. We're a Hunt-Fish brand, whatever. And I think brands often get scared to go outside of what they think they are in fear of losing their core. So it took courage for Roy and Ryan to be confident in the foundations in Hunt and Fish to go see what was up. And they discovered a real challenge. The coolers had the performance, but they didn't fit into the rafts really well. So YETI and the team back in Austin, they built the YETI 110. And there's a cooler now that fits into all major raft frames. And that was a real moment for YETI. This little brand from Driftwood kept an open mind and stepped into a new community without the fear of losing their core. And the same thing happened in barbecue. When we learned Pitmasters we were using our product to keep the meat warm. I mean that first commercial all talked about was keeping things cold. This was an aha moment. But that barbecue community ultimately took us to a broader culinary because while the pursuits are different, the product need and the passion behind it was all the same. And so that story about OARS, that was, started small, and that was just one example way back when, but it points to something much bigger. Our relevance extends well past where we are today. Consumers spend trillions of dollars across pursuits that matter to YETI, outdoor rec, sports and home. And a meaningful piece of that is generally ours to go after, categories where we have the real right to play, not just an assumption that we can show up. And we've already claimed a solid chunk of it, sure. But our audiences are giving us permission to go where we are not. And it adds up to an opportunity to roughly double the footprint we even hold today. And this pattern we see repeating itself because for the last 20 years, it's repeated itself over and over and over again. Communities keep pulling us towards real addressable opportunity because when you show up and you listen, people will show you the rest. And so this is the playbook. This is what we run, and this is what we think about all the time. And it's important to note that none of what I talk about starts with marketing. It starts with making products that perform. And that earns the trust, the first step once you make the product by doing what we say and building things that last. And once you have the trust, we position ourselves to go earn credibility through broader real-world performance and proof. And from credibility, then we move to presence. We start showing up across the communities where moments of passion run deep. And then from there, we inspire. We're a storytelling brand. We tell stories of people using our product and their own adventures. And finally, we connect and we put all these pieces in front of the right audiences at the right time. And that's the playbook that fuels the growth. Every new community makes our product better. Every better product makes gains more trust for our community. And the cycle just repeats itself, build product, earn trust, establish the credibility, grow our presence, drive to inspire and then relentlessly connect. And so we'll zoom in on each one of those and what each one of those steps mean for us, and we'll start with trust. And we earn trust in a few different ways. But the main way is by working with our ambassadors. And we look for people who are professionals in their pursuit, and they use our product every day. You met 4 of them last night. And these people are more than just self-declared influencers online. These people have earned the respect of the communities they're a part of with deep long-term relationships, kind of, already built in. And if our product works for them, when they need it, we know we have something competitive. We know we can move forward. Our ambassadors make our products better. They create that trust I was talking about, but maybe most importantly, they help us navigate the community. They bring the culture and product relevance we need to effectively go broaden our reach. And this network has a global following. When we entered the U.K., we just didn't guess on who we should go talk to. We asked our ambassador network. We asked Jimmy Chin, who's a world-renowned alpinist and filmmaker, hey, who should we talk to in the U.K. in the Climate, you should talk to Leo Houlding. Okay, let's go talk to Leo. He's an ambassador of ours now helping us in the U.K. When we thought we had something in the barbecue and culinary space, we asked Billy Durney. And if you're in New York, you may be eating at Hometown Bar-B-Que or Red Hook Tavern. Billy, who should we talk to in that space? You need to go talk to Lee Tiernan. Okay. Lee Tiernan is now an ambassador of ours, and he uses our product every day in helping us navigate the U.K. And this connectivity between our ambassadors ensure we're never entering a market from scratch, but with credibility already built in. And it's how we'll establish YETI brand internationally much faster than we could just sort of guessing on our own. So once you have the trust, and we move to credibility, and we choose where we play carefully. Currently, our 356 partners span the globe, each selected because they put us somewhere. We have that established trust and they provide the room for growth. And these are hunting lodges in Utah, all the way to newer partners like the NWSL, which is helping us establish credibility in women's soccer and sport to Red Bull Racing to the YETI Yard at Wrigley Field or older partners like Blackberry Mountain or Captains For Clean Water, which is an organization that's working hard on restoring the Everglades in Florida. These are 5 different worlds, one thing in common. Our product living there for a reason. And we're not buying reach. We're building on the trust that's already real and establishing associations that will endure. So once you have those 2, trust and credibility, then we feel like we can step in. So it's presence. That's our third step. And it's the simplest one to explain. We show up in person everywhere our communities already are. And when I say show up, I mean it literally. You saw kind of what it was like, really what we do last night. You can't learn a community from behind a desk or a screen. We put products in field, we show up at the events and we listen. We do roughly 450 global annual events a year. We have 8,000 specialty doors roughly that not only help drive our commercial engine, but these are the shops our enthusiasts and participants shop in. They help us understand our place in their lives and which products are resonating with that group of people. And that's not marketing reach. That's just us being there in person, speaking to our people. And growth hasn't pulled us away from where we started. It's actually given us the ability to invest in it even more, whether it's the YETI Open at Table Rock Lake, if you're in Branson next week, come see us. Places like Gearhead Outfitters, T&C Surf in Honolulu are larger partners like the World Surf League. These are communities that put our products to the test long before anyone else is watching, and we still show up for them every day. So once you have those 3, that's kind of our third-party advocation engine. We inspire. We tell stories. And when you have those 3 stories pop up everywhere. And we look for stories that inspire us because chances are, they'll inspire others, too. We're motivating them, whether it's to get back to something they stopped doing 5 years ago that they had brought so much joy their life or maybe it's a leap towards something they always dreamed about doing, but always kind of a little scared to do or even just break up their daily routines. And none of that falls out of a spec sheet, and these stories are born in moments worth living. And it's our job to give them the amplification that they deserve with films, campaigns, product stories, experiences and so much more. And so once we have those, then it's time for us to start connecting. And it's where it all becomes a package, the film, the campaigns, the data, the media, the product stories working as one system instead of separate efforts. Our Four Letters campaign that you saw drove a 15-point lift in YETI consideration. That's because the campaign was about them. They saw themselves in that campaign. And that consideration lift only compounds an already really strong consideration to conversion funnel that we have. Our own data tells us exactly who to reach next, real consumers with real followings who are already talking about YETI in their own feeds. And every product story we tell is fed by everything the first 4 steps taught us. And it's exciting that we're reaching new people, but it's more exciting to me that people are starting to understand what YETI stands for and they're choosing it. And this sense of belonging doesn't stop at borders. As we've introduced YETI into new markets, people connect for the brand for the exact same reasons they do here at home. And it's because humans are humans and connection travels. People are choosing to participate in this brand because what we are building is bigger than any one product, and it's bigger than any one pursuit. And whether you're in Munich or Tokyo or Australia or Argentina or here in Austin, Texas, our values translate. The language changes, the geography changes, but people connect because the wild is not a place. Built for the wild isn't a product for a place out there. The wild is the spirit inside us all. It's pushing us to do more, to be better versions of ourselves, to go participate in life. Our products, our stories are here to feed that, more passion, more obsession, more unmet needs met, more people what we like to call living their wild life. So I know I've said this numerous times, but product and brand are inextricably linked. Everything I talked about today, the trust, the credibility, the storytelling, the communities only exist because of the products we make. And this brand has more than earned the room to run further than it already has. And I know this because I'm on the other end of the phone calls, like they're calling us. These audience are calling us. And so with that, I'm honored to hand it over to 2 people who make my life in marketing much easier in the work that we do. Here's Hannah Mara and Layne Rigney to talk about the innovation engine that fuels everything. Thank you.

All right. Thank you, Bill. It was a pleasure to meet several of you last night. For those who of you I did not get to meet, my name is Hannah Mara, and I've had the absolute privilege of working at YETI for 6 years across multiple aspects of our product organization and shaping the innovation that has fueled our growth. And as I stand here Today, I'm incredibly excited by the opportunity in front of us. And it's not only in the products that we currently have, but in the innovations categories and consumer experiences that will define the next chapter at YETI. So I'm here to talk about how our growth is powered by a repeatable innovation engine. And this is an area where we have evolved the most in the last 5 years. And today, I'll talk about how we determine where to play and our product philosophy, how we've built and implemented a more efficient, more capable innovation engine and why we have real confidence in the next decade of growth, including in our U.S. Drinkware business. So as Bill said, at YETI, we don't start with the product in mind. We start with the problem to solve, whether it's a zipper that snags on your way into work, a latch that fails miles from the trailhead or ice that's melted before half time. We pay close attention to how and where consumers are already using our products and what other unmet needs exist. And frankly, that's our invitation to step in. And we lean on our partners and our ambassadors, people who have spent tens of thousands of hours in the field to tell us what great looks like. Their standards become our standards. And we listen to where we can surround more aspects of a consumer's life. And that's how we expand, solving problems in the spaces consumers already trust us and identifying where we can build something meaningfully better. A good example, which you heard several times yesterday is the Camino bag. YETI solved just a simple but overlooked consumer challenge. People needed a better way to carry all the gear that comes with life outdoors. So we designed a bag that could handle wet, dirty and demanding environments while keeping essentials protected, organized and easily accessible. And so what looked like a beach tote was built with the durability, the structure and the waterproof performance of YETI Gear. And people quickly found endless uses for it from hauling sandy wet suits and muddy gear to carrying sports equipment, chopped wood and everyday halls. And that enthusiasm revealed a much bigger opportunity. What started as a single product evolved into a family of products with multiple sizes, additional features and new zippred options. And so the Camino became more than a bag. It became another example of how YETI turns a clear consumer need into a platform for growth. An important note here, too, is that building something meaningfully better means refusing to accept trade-offs. For example, a product that is durable but lacks thoughtful design, one that performs well but isn't built to last. one that looks great, but doesn't solve the problem. So we believe consumers should not have to choose between durability, performance and design. They deserve all 3, and that's where we see opportunity to bring the quality and the functionality that YETI delivers on and that consumers value. Because when you give people what they deserve and you exceed their expectations, they notice and they become your advocates. 95% of our U.S. owners would recommend YETI to a friend or family member. It's been over 95% for over a decade. Even through incredible growth, we continue to deliver on our product promise. And we take that trust very seriously. It's why we're selective about what we develop. And this is not about slapping the YETI brand on more product. Every expansion should feel inevitable. When consumers see a new YETI product, we want their reaction to be one of excitement and of course, YETI makes that. And it muscles up to our standards to earn the YETI name. So how do we decide when to say yes, no, or not yet. And it's really a blend of art and science guided by 3 questions. So the first, do we have a distinct point of view? This means do we have a differentiated point of view on materials, construction and design. And our Panga Submersible Duffle is a great example here. Most bags are stitched, which means every needle hole is a chance for water to get in. Ours are welded the same way a white water raft is built. And that's not a small tweak. That is a wholly different approach to offer incredible protection. Second, is it a meaningful opportunity? Does the product stay true to who we are while expanding where we show up? And does it solve a real problem our communities face or just one dreamed up on a whiteboard? And do we have proof and a data-driven view of how the product will perform. And sports is a great example. It's a natural place for YETI to show up because think about what our products are built for, lasting season after season, holding up to sideline abuse and working when the wind is on the line. The opportunity is huge, and we're uniquely positioned to capture it. And third is now the right time. We don't often say no, but you will hear us say not now. Our barware journey is a great example. We started with the low ball and the wine tumbler, earning a place in consumers' cocktail rituals. Once we establish that credibility, we expanded beyond the individual vessel to cocktail shakers, pictures like the ones in front of you, beverage buckets and wine chillers. And it really expanded YETI's role from the first pour to the last strength. These questions represent the discipline and the strength in our product portfolio strategy. So before I walk you through our platform evolution, let me take a minute to actually show you some of the incredible products and platforms I'll be talking about. [Presentation]

So we don't just add more items to our portfolio. We intentionally build products into families, families into platforms, always protecting the trust we've earned along the way. So first, we enter solving a consumer problem with an iconic product built on real durability, performance and design. Next, we establish, watching and listening where our product gets pulled into new communities and new uses. And then we expand, thoughtfully extending the platform to serve more occasions. Let me give you an example. Our ICE buckets, which you saw last night, are incredible at keeping things cold. And once people witness what they can do, they let their imagination run wild. We noticed people using them to keep Carne Asada warm, using them for sous vide cooking and even creating massive nachos for gatherings. And that led us to think beyond the bucket and grow the platform into insulated bowls, delivering the same quality and thermal performance in products purposely designed for those uses. And you'll see this pattern over and over. It's what builds a whole ecosystem of complementary products around communities or occasions, and it's deepening our presence where we already have trust and then expanding into full platforms and new environments. And our commercial capabilities, as you'll hear about later, from new aisles to new channels, new markets are how we deliver on that demand once we've discovered it. And you can see this evolution play out across our history. We started with one iconic product, the Tundra 45. As consumers got familiar with its durability, performance and design, we saw the use cases brought into places we never expected, but made perfect sense. In Equestrian, we saw people were using the cooler to ice down horses' legs after long events. We also saw barbecue Pitmasters resting their briskets in them like Bill talked about. And in the Red Bull racing pit lane, teams were putting dry ice to keep the engine cool during a race. These foundational products gave a base from which to grow. And today, that's evolved into additional products from Hard Coolers to Soft Coolers and Drinkware into full product families and beyond. And because we stayed so connected to how our consumers were using our products, we have the insights to plan years of expansion ahead. And with 20 years under our belt, we've continued building scalable platforms that solve a broader set of needs while staying true to what made us YETI in the first place. So now the engine. Our innovation flywheel is simple. We identify patterns in how consumers behave. We translate them into well-designed products with broad relevance and then we scale across new use cases. And over the last several years, we've significantly transformed the way YETI innovates. It is no longer a series of individual launches over a period of time. It's become a repeatable capability that gets the right products to market at pace. And every product starts long before it's built. It starts with many diverse inputs. We're watching where our consumers are already pulling us, listening to our ambassador network and staying close to how consumer behavior is evolving. And beyond our communities, we're closely monitoring macro behavioral trends across industries and across the world. And the signals we pick up don't stay scattered. We put them through repeatable pattern recognition, weighing and testing against judgment until thousands of noisy individual signals become a handful of actionable insights. And those insights are what build the road map years out, which categories to enter next, which platforms to deepen and in what order. And once we determine what to build based on our insights, we feed that into our engine that delivers with accuracy, speed and productivity. An idea moves from the inside to shelf across 5 steps of our development cycle, and each step has been methodically built to deliver results. So first, tech and material sourcing. We invest in R&D and advanced materials development and have built a strong, diverse global network of suppliers. When outside technology or materials can accelerate our progress, we move fast to acquire it rather than build from scratch. That's exactly what Mystery Ranch and Helimix gave us. Second, lockstep design and engineering. Through talent development and acquisition, we've built deep in-house expertise and a team of industry-leading designers. They work shoulder to shoulder with our incredible engineers and the people who make our gear. A well-coordinated global operating model leads to faster iteration and faster results. Third, rapid sampling and prototyping. So take our innovation centers domestically and internationally, quickly sampling and prototyping product designs and validating them in one building saves immense time and cost. Fourth, on-site quality testing. So global innovation hubs and teams embedded in your manufacturing give us real-time feedback. So for example, the instant a component or a part comes off of a tool, it goes straight into quality verification. It's a quick turnaround for the tooling or the processing adjustments we need to make. And fifth, manufacturing at scale. And this is where speed becomes scale. Not only are we moving more quickly, but with dual and triple sourcing, we're able to diversify our manufacturing base and be more responsive to changing conditions. And our product design and development process isn't running out of one building. It's active right now across multiple locations in the United States, China and Southeast Asia. We put our talent close to the partners and the factories that make our gear. So while one region finishes work, another is just starting, creating a 24-hour cycle of rapid iteration, constant progression and efficiency. So here's a short film we put together to show what this looks like in action. [Presentation]

So the engine is able to run continuously because we put it exactly where it needs to be. And one example here is color. By putting teams to color our suppliers, we've cut in half, allowing for more flexibility and capability across Home & Hydration. And everything you just heard about our process and our innovation centers is enabling us to reduce our new product time to market by 1/3. So what are the tangible outcomes? And it's a balance between 2 things: product vitality and product longevity. 20% of our 2025 revenue came from products launched in the prior 24 months. That's vitality and proof that the innovation engine is working right now. And 60% of the same 2025 revenue came from legacy products that launched in 2021 or earlier. That's longevity. Proof these aren't fads, they're products people keep buying year after year. And we need both, a business built entirely on what's new is fragile, a business built entirely on what's old is stale. But this is what it looks like to have real momentum without losing what's durable underneath it. And so innovation is what turns something people never gave a second thought to into something they actively seek out. So let's talk about the opportunity innovation opens. As Matt shared, our innovation engine is a key element of building the next billion. It helps people put more products into more moments across consumers' lifetimes. And there is significant runway within the categories where we already play. So today, we participate in the $121 billion global premium market. In the U.S., that's $43 billion premium market, and YETI represents just 2% of that pie. These are massive growing markets. And as we continue to expand our platforms, we have meaningful white space to capture. And that gives us decades of potential to seize within our existing categories alone. And across the portfolio, we see a path to our next $1 billion in sales by 2030, growth that comes from both category and geography. And it's even more balanced, diversified and resilient business than the one we have today. And you can see it stacked right here, Home & Hydration, Gear & Equipment and Bags & Soft Coolers, each one contributing, none of it riding on a single category. Bags & Soft Coolers alone has a clear path to becoming our next $1 billion category, and we're accelerating through innovation and sustaining balanced growth. And one of our best -- some of our best consumers actually give us a powerful proof point of what ownership can become. Starting with our existing consumers, the top quartile of YETI consumers own an average of 14 items across Drinkware, Bags and Hard & Soft Coolers. The second quartile is on the exact same path just earlier in it. And the biggest difference between the 2 is time. And as consumers stay with YETI, they discover new products and use cases and their share of wallet builds. So if we move just 10% of U.S. YETI owners up 1 quartile, that's $1.2 billion of incremental opportunity. And now let's look at new consumers. Roughly 60 million U.S. households don't own YETI today, but look like the consumers who do, reach just 10% of them with YETI product, a drinkware item, a bag, soft cooler or hard cooler, and that's approximately $1 billion of incremental opportunity. So now that we see the engine that we've built and the opportunity ahead, here's what they meet, our platforms. And the 3 platforms in our portfolio are Gear & Equipment, Home & Hydration and Bags & Soft Coolers. So we'll start with Gear & Equipment. This includes our hard coolers, cases and storage and outdoor living products. It's all about helping people perform where and when it matters most. And as YETI's first platform, this is where we earn credibility and shape the brand. We started with the Tundra 45 cooler and built the best on the market. You saw the videos today. They're bear-proof, able to perform incredible feet of strength, survive in the harshest environments and never stop delivering on the durability, performance and design we've been known for since day 1. So 20 years later, the Tundra 45 continues to be one of our leading coolers and serves as a foundation for not only our expanded hard cooler line, but also every category we have entered. The early evolution of the Tundra was simply adding a broader range of sizes and price points. Then we moved into products people could use alongside the cooler and later added the Roadie cooler line for consumers who wanted more portability and maneuverability. And as we expanded hard coolers, we noticed how our consumers were using them beyond keeping things cold, but rather as organization and protection for their sensitive equipment such as cameras, scopes and drones. And that called us into cases and storage, starting with the GoBox 30. And today, you can find it holding everything from climbing and mountaineering equipment to emergency kits. We've quickly expanded GoBox into additional formats and launched in phone cases earlier this month. And we're not stopping anytime soon. We have exciting innovation in the pipeline that we'll be giving you a sneak peek of later, and I highly encourage all of you to take a look. So Gear & Equipment has strong tailwinds behind it, and they show up in a few ways. More people are getting outdoors with 30 million new outdoor participants since 2019. And people are spending more on experiences. Experiences make up 43% more of consumers' budgets than they did in 2000. And they're spending more on Gear that enables them to get outside and live their passions. Spending on Gear for sports and recreation is up 13% over the last few years. And Gear & Equipment is showing up in even more moments across a wider variety of occasions, especially when it matters most, whether it's rolling coolers that make the navigating the beach or the Baldface easier, smaller formats that are more portable to move along with you, weather-proof storage that helps protect a GPS in the wild or a wallet on the boat and camp chairs and blankets are giving people more comfort and durability as they gather around a bonfire or watch a concert in the park. And those are just a few examples. Every one of those moments is a new reason to own a YETI, a new door into a category we're beginning to scale. And once we move into the category, we can continue to innovate and explore other areas we can serve. You'll see the same pattern repeat as we move into Home & Hydration and Bags & Soft Coolers. So let's look at the growth for Gear & Equipment. This is an $18 billion global premium market where we hold about a 2% share today. We built this category from the original Tundra 45 to over 18 hard coolers covering the full range of personal, consumer and commercial formats. Our Power Cooler will bring an exciting innovation to YETI and to the entire category next year. We've paired our strength in design and materials with our deep connection to our communities to expand the GoBox platform. That has grown to 7 formats this week, 11 by year-end and 15 by the end of next year. Our award-winning Trailhead Camp Chair has evolved from a single product to a growing platform joined by our beach chair last year, our field chair earlier this year and our stadium chair next year. Our innovation engine is on fire, and we are excited to see it engage existing consumers and reach new consumers. So as a result, we expect this platform to grow from $360 million in 2025 to up to $600 million by 2030. That's low double-digit growth over the next 5 years, much higher than the 5% pace of the overall global category. So let's move to Home & Hydration. This platform is about expanding to be part of more moments in a consumer's life through new occasions, new materials and new formats. Now think about how many products consumers use in any given day and where YETI already shows up. So for example, it's fueling for a workout with our shaker bottles and jugs. It's entertaining at home with our bowls and pictures, and it's reaching for our stackable cups like the ones you're using today as the ultimate utility driver for coffee to cocktails and everything in between. And those are just to name a few. We're solving for more needs for consumers who already trust us and for those who have yet to discover YETI. So in 2014, we started with 2 stainless steel styles, the YETI Rambler 20 oz and 30 oz Tumblers. That original 20-ounce tumblers is still one of our longest-running products, and it's up double digits year-over-year. Then we watch how our consumers were using our products. We saw people using the 10 oz Lowball, not just for drinks, but also for keeping chili hot or ice cream cold. And that pulled us into food storage with insulated food jars. That's one kind of expansion, one product pointing us to a new application. But we also identified a different kind of opportunity, which was building complete workflows around occasions. And coffee is a great example. We started with the Rambler mug, then we expanded into espresso and coffee cups. And from there, we moved into brewing with the French Press, solving for over-brewed lukewarm coffee, whether at home or outdoors. And later, we expanded ceramic lining across our core coffee assortment. And so what became as a single cup evolved into an integrated system, allowing us to improve the entire coffee experience. So here's what that adds up to. Instead of focusing a category on a single product, we play in several categories with several products. Diversification is immensely powerful, and it's exactly what keeps this platform growing. And the tailwinds behind the expansion of this platform are strong. So 77% of U.S. adults resolved to drink more water this year. That's the #1 health revolution across the country. 65% of global consumers now carry a reusable bottle, and 127 countries now restrict single-use plastics, contributing to the growth of the reusable category. All these structural consumer behavior shifts are supporting our growth trajectory, and that's just in Hydration alone. So here's an important point. This is not a single-product platform. People do not use one vessel for every need. Their coffee routine is different from their commute. Their desk is different from the gym. The sideline is different from the backyard. Individual hydration is different from serving and hosting a group. So if we look at the opportunity that even a single additional drinkware item creates, the math is compelling. Selling just one more drinkware item to our existing customers is worth $2.1 billion. Selling one more drinkware item to our new consumers who look like our existing base is just worth another $2.4 billion. That's $4.5 billion sitting inside a single purchase. And that's the power of our model. A single product gives us a foothold, but the relationship grows over time as consumers find more reasons to bring YETI into their day, into their routines and into their communities. They come back for the next use case, and they bring others with them. And that is how one purchase becomes a pathway to many more. And how we make this happen is both in driving awareness of our brand and the full extent of our portfolio as well as getting the right product in the right place with the right stories as Stuart, David and Mitch will cover. All right. So now let's look at what's driving growth over the next several years. In Home & Hydration, our strategy is to build on a strong foundation, continue to evolve the platform to meet the changing needs of global consumers. And that means continuing to lead in everyday hydration from commuting to daily routines while pushing deeper into sports on the sidelines. And at the same time, we are expanding YETI into and around the home through products that earn their place in the kitchen, around the table or wherever people gather. Our new tableware, food and cookware products are a thoughtful extension of the YETI platform, opening new opportunities where we can bring a distinct point of view. And across platforms, we have expanded customization capabilities in both digital and retail experiences, enabling greater consumer self-expression and deeper connection to the brand. And these capabilities, they also create new opportunities to engage consumers through strategic partnerships and broader distribution channels, and they drive incremental demand and repeat purchases. And while we've built a leadership position, we still hold a relatively small share of a very large global market. And that gives us confidence in the runway ahead. Our global premium drinkware and homeware TAM is $50 billion, and we hold just 2% of it. We've expanded this platform from $425 million in 2018 to $1.1 billion in 2025. We expect $1.5 billion by 2030, a mid-single-digit growth rate ahead of the pace of the global category. And finally, our third platform, Bags & Soft Coolers. Bags & Soft Coolers Bags just demonstrates what happens when we combine how consumers behave, real product innovation and brand credibility. This platform is one of our most exciting long-term opportunities. Moving from outdoors to everyday travel took more than a good product. It took a brand people already trust, an audience that's grown far past where we started and product capabilities that could keep pace. Bags & Soft Coolers sit right at the intersection of all 3, which is why we believe we've only scratched the surface here. We started with Soft Coolers and made the best in the market with our Hopper Soft Cooler that could keep ice for days. Then we watched how people use them in daily routines, such as commutes heading into work, parents packing for field trips. Following our consumer signals, we then translated the Hopper into more everyday products for more consumers by introducing the day trip line. Now, what Hopper is to everyday coolers, pangas is to bags. We started with the iconic product that was waterproof and fully submersible and then translated that into everyday travel and in addition to our pursuit focus. And it's the same pattern we keep calling out. We start with the iconic product that is the pinnacle in the category. We follow the consumer's lead, and we expand thoughtfully. So now I'm going to turn it over to Layne to take you through why we believe that Bags & Soft Coolers themselves are a $1 billion opportunity.

Good morning, everyone, and thank you, Hannah. I'm Layne Rigney. I'm excited to get a chance to talk to you for a few minutes about YETI's growing Bags portfolio. Prior to joining YETI in January 2024, I spent the better part of 2 decades in the bag space. Most recently, I had the privilege of leading one of the world's better known outdoor bags brands. Someone in my family once told me, you should only make a decision in your life that's big and meaningful when it feels like an imperative, something you absolutely had to do. And after looking deeply at YETI's place in the market and its readiness to go be a player in this space and then after meeting the leadership team, many of whom you'll get a chance to meet or hear from today, that was it for me. That was the imperative. I knew I felt it. And I had to join to lead this opportunity for YETI and this team. So let's dive into what that next phase looks like. So Bags & Soft Coolers are built on a trusted durable foundation, and they have the inherent advantage of preexisting demand. A few years ago, when we were developing our bag strategy, we tested that demand, and we found that 90% of existing YETI consumers were interested in a bag from YETI. That's a privilege I've never had in my career, and our team is focused on building a portfolio of products that closes this gap. Because when we do, the impact is significant. Every 10% of demand we capture is valued at $500 million in revenue. Those are big steps on our path to the next $1 billion. Importantly, consumers don't own just one bag or soft cooler. If you want proof of that, go home, inventory your own closets. And frankly, I watched a lot of you shop last night and you added to your inventory last night when you were down the store. For me, maybe it's an occupational hazard, but my home has more bags in it, more soft coolers in it than I would do drinkware. And each one of those products I acquired despite an employee discount at a higher ASP than any of the drinkware products we have in our house. So getting Bags & Soft Coolers to our next $1 billion platform is within reach. It only requires 1 in 5 YETI customers to convert, again, when 90% of them say they already will. Beyond our own universe of YETI consumers, this platform is a door to an entirely new consumer for us, especially younger consumers and female consumers, both of whom have high category purchase intent. And it isn't just a domestic story. Over half of the soft cooler and bag purchases globally are concentrated in Europe and Asia, which is exactly where our next international opportunity accelerates from here. Now let's zoom out and take a look at the market size. Bags & Soft Coolers represent a $68 billion global market, $53 billion in the global premium market, $20 billion in the U.S. premium market. And today, YETI has less than 1% share, giving us significant room to grow. Not only is the market attractive and accessible, but participation trends are strong, and they're driving more consumers towards our growing portfolio. More people are active, more people are traveling and spending on travel continues to grow. All of these are signals of more moments and more occasions for this platform to serve. In 2017, we entered the bag category with Panga. You've heard about that earlier today. That was a product built because rafters and anglers needed something fully submersible and we had the capability to make it. That's one product for one specific use case. But it also proved that we can make great bags and that when we did, people noticed. Today, we're well on our way to becoming an established player across the whole platform. We've built out the brand. We've expanded beyond those legacy pursuits. We've developed real commercial channels, added dedicated innovation centers, and we continue to wake up every day focused on scaling the platform by solving problems and telling the stories that only YETI can tell. We went from serving -- we went from solving one problem for one community to building a category presence across all of them. That 90% number, the number of people who say they want a YETI bag, isn't us pushing our way in. It's consumers opening the door and inviting us in, just as they have with every other platform where we've built a business. So where are we today? This has been a multiyear journey, and the results have been significant. We've grown Bags & Soft Coolers from $130 million in 2018 to $390 million today. That's a 17% compound annual growth rate. We built the strategy in 2023. In 2024, we invested in accelerated innovation, including our acquisition of Mystery Ranch. In 2025, we launched more Bags & Soft Coolers than in any year prior. And in '26, we're moving even faster, launching core reinforcing products like Skala, styles that are new to YETI like the Ranchero Crossbody, expanding our day trip line into larger and smaller formats like snack occasions for the whole family. And earlier this summer, we opened our new soft goods innovation center in Vietnam. We're past the point of hoping for success. We're a healthy growing business, and we're pushing for more. Now we're building out our bags portfolio with the know-how to do it right. We're leveraging everything we've already learned from soft coolers, and we have the focus, capabilities and route to market to be successful. Let's talk about those 3 things individually. First, focus. Not only do we have a strategy, but we have the best team to execute it. It isn't a side project. We've built a team with deep, dedicated expertise in the category and in this platform specifically. They understand the communities, the pursuits and the use cases we're designing for better than anyone. Next, capabilities. We've invested in in-house innovation centers in Denver, Bozeman, Vietnam. All of them are dedicated to soft goods, and they keep iteration and manufacturing turnaround tight. This gives us speed and cost savings. And finally, our routes to market. YETI products are already sold where most consumers buy bags today. And in so many cases, these are channels we've already built or we're building now. This is readiness whose nucleus is already well established and primed for expansion. So it's time to talk about what brings the opportunity to life, which is product. We organized the pipeline around these 3 segments. They're really easy to understand every day. It's just what it sounds like. These are products for work, play, campus, around town and beyond. Many, if not most, of you carried something from this category today. Next is travel, products for adventure, leisure, commute and business. Nothing drives myself or my team more crazy than the idea of people heading into their version of the wild by packing their YETI products into someone else's bags. We've set our sights clearly on making sure this doesn't happen. Finally, Pursuit, products for fish, hunt, hike, mountaineering, sport and beyond. This is where we earned our stripes initially with the Panga, and it's still our proof point today. If it's proven by mountaineers on the highest peaks, anglers offshore, hunters in the back country, it will work for anything on the list. But the real opportunity in front of us is every day in travel. A bag, whether that's a soft cooler, a backpack or a cross-body bag goes with you everywhere every day. And bags immediately open the aperture for more YETI products to be carried with them. Together, these 3 segments serve more occasions, reach more consumers and give our existing consumers even more reasons to come back. But beyond segmentation, it's innovation that separates us. And in order to understand what makes YETI different, I want to anchor everybody on what makes most of the others the same. Here's the model that most brands use. Product designers, developers, quality folks, they're living at desks, thousands of miles away and removed from where the products are actually being made. They take as many as 2 to 4, and I'm saying many jokingly, as many as 4 trips a year to a supplier. And what they do is they embed in these sample rooms for 1-week sprints. You get the math on that. They're doing 2 to 4 weeks period per year actually building product. And they're being steered towards the known and they're being steered towards the easy. That isn't building, it's shopping. Locating in Vietnam gives our team 3 key things. First is innovation. We decide how to solve our customers' problems in the best way we can. We aren't led to those solutions by suppliers who are looking to fill capacity. We stay really close to the process so we can iterate until we get it right. The next thing it gives us is speed. That same proximity, it allows us to move faster. Ideas go from concept to testing to production without samples and patterns traveling back and forth across the globe. If there's a problem, we're on the factory floor on the same day it's occurred, and we're solving the problem. We take months out of the process by doing that, and we put that time back into creating value. And finally, cost. Our Vietnam innovation center is staffed by true product builders. And importantly, as builders, when our sourcing team walks into a factory, every cards face up. We know how much time it takes to build a product. We know how much fabric it takes. We've nominated every material in that product, and we work shoulder to shoulder every day in the places where that product is built. This -- that's what turns the cards face up and allows us to go source with the best of them. And again, this is the difference between shopping for a product and making a product. And I can tell you from 20 years' experience in this category, it's absolutely not the norm. This is the investment we've made and it's going to give us our winning edge. None of this works without the commercial engine behind it. The strength of that commercial engine at YETI is what convinced me we could build a better bag brand, and we could do it faster than anyone else. It's why I joined YETI. And in my 2.5 years here building this foundation, I'm more convinced of this truth now than I am since I joined. Brand and marketing feeds top of the funnel awareness. Our storytellers at YETI are unequaled at creating emotion. And our community teams, they're masters at building to steal Bill's words, building trust through trusted sources. And the commercial team places Bags & Soft Coolers where consumers already shop with a strong wholesale roster of the best retailers in the space and real discovery and conversion right on yeti.com. Plus, internationally, this product gives us -- this platform gives us an easier way in. In a lot of these new markets, bags are already more adopted than in any other category we sell. And I want to dwell on this point for a moment, and I want to talk about -- what do I want to talk about? When you take innovative product that solves problems for customers, you combine it with trust and emotional connection and you put it into distribution around the world that reinforces its belongings, that's the formula. A few brands can maybe do one of these things. Very, very few brands can do all 3 of them. YETI is one of them. That's rarefied air already if it's not the rarest air. But here's what separates us. And I get to turn this into the game show portion of today's Investor Day. Name one brand besides YETI, who can do all 3 of those things credibly with hunters, anglers, hikers, alponists, surfers, PGA golfers, Millennium Michelin Chefs, world-renowned Pitmasters, Rodeo riders, Rugby players and on and on and on. You can find one, you can name one, find me during the break. Let me know, I'd love to hear the answer. And if you're watching online, you can e-mail me, but spoiler alert, you won't be able to name one. So I've shown you the expertise we have in-house for design, shown you how we're segmenting the line and where we're taking the Soft Coolers & Bags category. And I've shown you how we're investing in Vietnam as part of our innovation cycle. That's how we're going to capture that 90% of latent demand and build our next $1 billion platform. Brought together, here's the trajectory. We expect to nearly double this business by 2030, with Bags & Soft Coolers growing roughly equally, landing close to a 50-50 split by the end of the decade. And it will be a global play with 1/3 of that growth coming from international markets alone. So let's wrap up the product and innovation section that Hannah started with this. Our strategy is methodical and innovation is our differentiator, creating opportunities for efficiency and growth, not just in Bags & Soft Coolers, but across all of our product platforms. That innovation engine that allowed us to build upon our iconic products into scaled platforms across all product categories, we're bringing new formats, closures, materials and features to market. This diversification is our strength, and we're expanding across multiple vectors to win, new SKUs, new occasions, new consumers, new markets. Bags & Soft Coolers is an example of how these strengths are fueling our next chapter of growth. They prove that consumers can accept premium pricing when they're given a premium product. They earn that advocacy through real-world credibility and every new offering that we bring to the consumer has to earn its right to exist. Technical Hunting Bag, which is a little foreshadowing to where the product road map might go, it's a great example. It may never be a major revenue driver for us, but it's exactly the kind of halo product that makes it worthy of us -- makes us worthy of playing in the category at all. And it's why we believe this will be our next $1 billion platform. So before we jump into commercialization, how does everyone feel about a break? When we get back, Stuart is going to walk you through YETI's commercial engine. I believe you have 10 minutes to stretch your legs and be back in your seats. So thanks, everyone, for listening, and talk to you in 10 minutes.

So we're taking a 20-minute break now, so if everyone could be back in their seats around 9:55. Thank you. [Break]

All right, everyone. Welcome back for round 2. I'm Stuart Hogue, Senior Vice President of the Americas. A little bit about me. I've spent my career building brands, scaling commercial organizations and bringing innovation to market. It's what I love doing. Just under a year ago, I followed my heart to YETI. I joined this great team because I love what YETI stands for. We are built for the wild, it's the theme of the day. And I saw the incredible runway for a brand with so much potential. Today, it's my privilege to show you how we will unlock that potential and drive the next phase of growth here. This morning, you've heard about the strength of the YETI brand, our innovation pipeline and our major product platforms. Now I will show you how we will translate all of that innovation into incremental growth through a powered up and scalable commercial engine. I feel fortunate to be here. I feel fortunate to have joined this great team, fortunate for Matt's vision and leadership. We are building on such a strong foundation, a company culture and commitment forged over 2 decades to building the brand and the business the right way. And while we're very proud of the business we've built here, we are hungry for more. We are still in the early days of unlocking its full potential. Innovation. Innovation only matters when people discover and use it. As you've seen today, our innovation engine is absolutely humming. My job is to take everything Hannah and Layne just showed you and turn that into commercial results by reaching more people, creating more moments for discovery and improving how we show up and sell. 20 years ago, we walked into McBride, a hunting and fishing shop right here in Austin with one ask, sell a $300 cooler. And if it doesn't work, we'll take it back. And after Roy jumped up and down the cooler a few times, they finally said, yes, and then more importantly, so did their consumers. They snapped them up. We sprinted to replenish and it all grew from there. The model worked. It drove traffic and created an entirely new category. And over the next 2 decades, we stayed rooted in retail and obsessed with the consumer as we expanded far beyond that first shelf. Today, in addition to our robust digital business, across the Americas, we're in thousands of retail doors, plus 28 YETI branded stores of our own, including the iconic YETI Austin flagship on South Congress, where we are today. YETI is no longer just a cooler company. We are a global brand delivering for endless consumer occasions. And that comes to life in a few ways. We have more innovation to absorb, more people to reach and more places where we show up. Our commercial engine has to turn these strengths into growth. And that commercial engine needs to enable us to capture the significant runway for growth we have right here in the U.S. We look at potential across a number of dimensions. Geographically, we are underpenetrated in key parts of the country, particularly in the Northeast, the West and in urban markets. We see another clear opportunity with younger consumers, especially those under 35, where our penetration remains well below more established YETI consumer groups. We have significant wallet share opportunity. We know they are spending in places where we play, and we believe our consumers should be spending more with us. We also see opportunity in the powerful pull that comes from our brand. We know that when we create owners, we create brand advocates who in turn generate YETI awareness. It's an ever accelerating flywheel that gives us a powerful force for growth, reaching more consumers in more places who in turn drive greater ownership and advocacy. We are bringing on a whole new generation of champions into the YETI brand. And while the potential is immense, the ground beneath our industry is shifting, and it's shifting fast. Marketplaces, social commerce, agentic shopping, entirely new consumers are all evolving quickly, changing how people discover and shop every single day. The brands that will win in this high-change environment will meet people where they are while protecting their premium positions. Today, most YETI consumers already shop us on multiple channels. And they expect a great experience right for that moment regardless of where they start. It's why we're so selective with the partners we work with. As we look to ride or better said, drive that next phase of growth, the question isn't whether this cooler company can keep growing. The question is how we unlock the full value of this brand in this increasingly diverse product portfolio. Where do we win? How do we scale? How do we maximize the opportunity ahead of us? What I do know, the winners won't just have great products and great retail. They'll have the strongest commercial platforms. Our commercial engine is that platform for scalable growth. The YETI commercial engine is comprised of 3 components. We now have consumer verticals that serve as the consumer lens through which we build and deploy our commercial strategy. We have our channels to market, where we reach those consumers through a powerful balance of complementary retail destinations. And now we have a go-to-market process, a newly established operating system that is serving as YETI's end-to-end commercial spine. Together, these capabilities help us put the right product into the right place with the right story, all with discipline and repeatability. Okay. Let's start with the consumer. Growth starts with understanding consumers deeply, knowing the moments they care about, the communities they belong to, the occasions where YETI can serve them and importantly, where they choose to shop. We serve millions of people across hundreds of pursuits. That's the strength of YETI. But it's also exactly why we have to focus to maximize our impact. To enable that focus, we've organized around 4 consumer verticals built on the foundation of the communities inside them: outdoor, sport and wellness, home and work. These aren't simply marketing segments. They represent some of the largest and most attractive growth opportunities available. Outdoor is large. It's also where we've grown up and where we've captured the most demand to date. Sport and wellness is a newer area of focus and represents a significant opportunity for our growth, and we are only at the beginning of capturing it. Our home vertical is an exciting avenue for us to extend YETI's great Drinkware, cookware and living innovation across the entire home. And YETI is built for the job site. In the work vertical, we continue to see room for YETI to be an even more essential part of getting work done. The verticals aren't just room to grow. They are the lens through which we make strategic decisions about who we serve, where we show up, what we put on shelves and the stories we tell. It's also how we're now organized, giving teams the focus and accountability to drive results. Cross that with channel and the same product tells a different story depending on where it shows up. A cooler that started in the fishing community shows up just as naturally for a tailgator, a contractor or a pitmaster. Same product, different story on the right shelf. That's what verticals let us do on purpose with precision and scale. And once we know who we're serving and where they shop, the next question becomes, well, how do we meet them there? And that's where our channels come in. Our channel balance is an incredible strength for YETI. We've grown wholesale to be 40% of our business, while DTC is 60%. Our DTC and wholesale channels complement each other by playing distinctive roles. Wholesale gives us consumer access and allows us to powerfully introduce and scale innovation. DTC gives us discovery, direct relationships and the loyalty that comes from our unique ability to personalize for consumers. They work in tandem. Wholesale expands the audience. DTC showcases the best of YETI while deepening the relationship. And within that, each channel has its own job. Wholesale drives scale, YETI stores and Dot-Com drive discovery, Marketplaces drive reach and B2B drives the powerful advocacy that comes from an employee proudly associates where they work with a brand they love. That balance is our strategic advantage, and it's what makes us more resilient as commerce keeps evolving. With our wholesale partners, we are showcasing our innovation on more shelves. Aligned to our vertical lens, we're opening up new retail partnerships in college bookstores, golf shops, home specialty and more. And it's worth saying very clearly, our wholesale partners are an essential part of the YETI growth story. DICK'S Sporting Goods, Bass Pro, REI, SCHEELS, ACE Hardware, every one of them is investing with us through shelf space merchandising reaching thousands of doors across the U.S. Earning their trust is just as much our job as winning over the person who walks through the door. And earning that leadership position with our wholesale partners comes down to the deep partnerships we've built where we work side by side to get the right product into the right store and onto the right shelf. And that creates incremental value in 3 ways. First, on the shelves that we're already on, data-driven merchandising enables us to sell more through improved velocity by optimizing the assortment we already have. Second, in those same stores, we are winning more space through product expansion and innovation, serving new consumer occasions well beyond the YETI pad. And third, we've done the detailed work to map out the premium doors where we aren't today, but should be to power the future of our product discovery. Put those 3 levers together, and we expect mid-single-digit wholesale growth across the U.S. through 2030. And the good news is this is the kind of incremental gain that is fully within our control. All right. Let's look at some real-world examples of the YETI commercial engine coming to life and catalyzing growth. As we've expanded our Sports vertical, we've worked alongside DICK'S Sporting Goods, our largest national sporting goods partner to rethink how YETI shows up inside the store, not just adding more product, but merchandising solutions for athletes, the right assortment, better product adjacency, more integrated storytelling and a more complete YETI destination. This House of Sport activation through DICK'S Media Network gave us the chance to bring that strategy to life. This spring, we were featured front of store and showcased our newest innovation in Sport Hydration, the Silo Jug, along with a complete assortment built for game day. And in those locations, we saw a 40% to 50% lift in sell-through trend versus the locations that didn't offer this activation yet. We connected the right product in the right place with the right story. We're running the same playbook elsewhere. Our sports license program is another example of how we're introducing a new reason to shop YETI on new shelves with new partners. Through our relationships with the NCAA, the NFL, MLB, NHL, NWSL and more, we've introduced our signature cup program and fandom series in college bookstores, stadiums, wholesale and fanatics. We are delivering the right story in moments of great consumer passion to drive yet another reason to proudly own YETI. And in golf, we're opening new doors where up until now, we haven't been before. With our step change move into green grass, we are now serving golfers from the tee box to the 19th hole by opening in pro shops across the U.S. These premium golf destinations represent a 6,000 door opportunity for us. These examples bring to life a model that we can run again and again partner by partner and door by door. Now let's talk about YETI stores and YETI Dot-Com. Our stores and YETI Dot-Com are how we build the deepest relationships. And more and more, they are where we are proving out our latest innovation. Across our own channels, our share of new product sales drive meaningful contribution, proving stores and Dot-Com to be a showcase for what's next from YETI. Our stores give people the full brand experience. And when we open one, it lifts everything around it. We have 28 stores today, each driving a 5% to 10% lift in nearby channels. Localization is increasingly driving a lot of that, especially with our branded apparel expansion. At our new Boston store on Newbury Street, nearly half of our sales came from an assortment localized to that market. YETI Dot-Com gives us something no other channel does, a direct relationship with the consumer and direct data. Consumers want products that reflect who they are, their teams, their passions, their communities. Custom Drinkware now makes up the majority of our online Drinkware sales. And those consumers come back to buy again and again at almost a 25% higher rate than non-custom buyers. We're pairing that with guided Discovery through Ranger, an AI-powered chat experience that is getting smarter and smarter every day. When the consumer engages with Ranger, we see at least a 2x lift on conversion. It's experiences like these deeply connected and personal that turn a purchase into a long-term relationship. Now let's talk about how we extend our DTC business through our digital marketplaces. Consumers are increasingly beginning their shopping journey on digital marketplaces. Therefore, we need to be where they're going. We're growing our presence on marketplaces, going deeper with partners like Amazon, a scaled platform that wins on speed and selection. It's also a place to win when consumers are searching for solutions. A great example is with the growth we've seen in the new Yonder Shaker bottle on Amazon. As consumers are searching for help me find the best Shaker bottle, the Yonder Shaker is driving outsized growth. We're also onboarding new marketplace destinations like TikTok Shop, which we added earlier this year. TikTok has been a great vehicle to inspire a younger audience. Since launching on TikTok, influencers have created more than 14,000 product videos viewed over 9 million times. With marketplaces like these and others, we are positioned to win as these platforms meet consumers where they are. We expect that combined marketplace reach will grow at high-single digits through 2030. We're also showing up in a newer kind of platform, large language models like Gemini and ChatGPT. Across the 4 major LLMs, YETI ranks #1 in the cooler category for visibility, and we have 2x the visibility of our closest competitor in drinkware. This is a big deal. As more shopping starts with a question to an agent instead of a search query, we're already positioned to win that moment. If there is one takeaway from our focus on marketplace growth, it's this. We won't just wait for people to come and find us on our own channels. We are committed to finding consumers where they are today and where they're going tomorrow. All right. B2B. Let's talk about B2B. B2B is how we describe our corporate sales business, and it's another significant growth opportunity for us. Historically, much of this business has been inbound and transactional. And today, we're transforming it into a strategic outbound growth business. We're proactively building corporate partnerships, leading with customization and serving their employees through gifting, recognition, onboarding and events. We're already doing this with important partners across travel, hospitality, construction and field-based work. Increasingly, I'm excited because YETI product will not just be a corporate gift, but an essential gear for employees to get their jobs better -- to get their jobs done better. Since 2022, we have served over 20,000 B2B partners. One of our most exciting recent partnerships is with AG1, the fast-growing company dedicated to foundational nutrition. This partnership features our new Shaker bottles as a core component of their membership package. It's been a great way for us to drive product discovery that will then translate into more purchases down the road. We have more emerging examples like AG1. These brand partnerships are unlocking a whole new ecosystem of consumer discovery for YETI innovation. All right. None of these channels operate independently, and that's where go-to-market excellence comes in. This year, we've launched an end-to-end go-to-market process that is moving us from a launch win-ready mindset to a more orchestrated and coordinated approach to ensure that when we do launch, we maximize our full commercial impact. This new operating system is powering our entire commercial engine, bringing together product, merchandising, marketing, sales, DTC insights to enable us to land innovation as strongly as possible. It's built as a scalable, repeatable system, driving greater discipline throughout the entire organization. All right. Throughout this presentation, you've heard me come back to the same idea, the right product, the right place, the right story. Go-to-market excellence is how we make that happen consistently and most critically in an orchestrated fashion. This is the YETI commercial engine altogether. Consumer verticals tells us who to focus on and where the opportunity is. Channel balance tells us how to reach our consumers with wholesale and DTC working in tandem. And go-to-market excellence is what makes it repeatable, maximizing every launch through coordination and discipline. Put those 3 together and you get growth that isn't dependent on any single bet. It's systematic, it's sustainable and it's focused. That's the YETI commercial engine. We've grown U.S. sales from $760 million in 2018 to $1.5 billion in 2025. We've doubled our U.S. business since we IPO-ed. Our next chapter takes us to nearly $2 billion by 2030. That's on a mid-single-digit 5-year CAGR powered by expanding the audience, access and lifetime value all through sharper and more integrated go-to-market. Okay. I'll bring my part home. YETI has meaningful runway ahead in the U.S. We will unlock that significant potential through more consumers in more places and more spaces. That's how our commercial engine compounds growth. We will unlock mid-single-digit wholesale growth through the 3 levers we walked through today, better velocity, more shelf space and new doors. We still have untapped potential with our retail partners in the U.S. across all 4 verticals. And as a key part of our DTC future, digital marketplaces will drive high single-digit growth and the strategic elevation of our B2B partnerships will drive mid-single-digit growth to complement. That's the YETI commercial engine in action. With that, I'll turn it over to Scott, David and Mitch to take you through how we're extending that capability and opportunity internationally. Thank you.

All right. Thank you, Stuart. Good morning, everyone. My name is Scott Bomar. I'm the Chief Financial Officer. It's my absolute privilege to be here to kick off the international discussion. I couldn't be more excited to talk about this. So you've heard this morning about a brand that travels. We spent the last several years building the foundation to take YETI to more consumers around the world. We built awareness in key markets, invested in capabilities and teams to support the growth and streamlined our model so we can scale more effectively. I'll walk you through a repeatable playbook we've created and continue to refine for how we're scaling this brand around the world. And then Mitch and David will talk to you about how we're using it to accelerate in Europe and how we're applying everything we've learned to extend our reach across Asia Pacific. International is no longer at the edges of our business. Our presence outside the U.S. now equals what our entire business was just 10 years ago. We've grown from approximately $20 million in 2018 to $390 million in 2025, a greater than 50% compound annual growth rate. And we have our sights set on a $1 billion international business by 2030. The real story isn't just growth, it's how we've grown. Europe and Asia aren't single markets. There are a portfolio of unique under-penetrated opportunities that we enter with the same approach every time. Each market has its own nuances, but the playbook works and is repeatable. We earn trust credibility first, activate the brand more broadly and then scale through extended distribution. Australia and Canada got us started and proved the model. U.K., Germany and Europe leveraged it, refined it and showed us that we can run it faster. And then Japan, Korea and China are where we begin the next chapter. So here's what's making that expansion possible. First, we apply the same repeatable playbook market after market. Next, we stay asset-light, so we don't have to spend our way into the growth. And then finally, we ensure the growth doesn't just add sales, but also adds profitability. And as we look to the future, we expect the international business to be accretive to enterprise profitability. With each new market, we learn, we refined and we cycle through the steps again. You saw this playbook earlier from Bill, the guide, the angler, the Pitmaster, the climber, the elites who live a pursuit every day. That's where the trust starts. To the enthusiasts who are deeply engaged, to the participants who engage more casually, down to the spectators like myself, who may rarely take part but are influenced by everyone above them. And while the specific pursuits vary by market, the approach remains the same. Phase 1 builds credibility with the specialists at the top, Phase 2 activates the brand more broadly with local relevance. And then Phase 3 scales through an extended go-to-market. Each market follows the same shape. So let's look at Australia as a case study. Year 1 was about establishing credibility through community marketing, establishing a premium dealer network and then launching our e-commerce capabilities. It was that same specialist first approach you saw in the pyramid. Years 2 through 4, we scaled to 300 dealers while accelerating brand advocacy with YETI communities and direct-to-consumer. Years 5 through 8, we grew to over $150 million in revenue by moving to national accounts, opening 65 VCF doors and expanding into national retailers like Rebel Sport. It's the same 3-phase pattern, credibility, activation, scale, told in real years and in real dollars. Our success in Australia and our success in Canada came down to a few things: one, finding the right partners to help establish ourselves; two, investing in our own channels, especially the digital channels; and finally, scaling with key retail partners across the region for broader reach. And as we've opened new markets, we've learned. And as we've learned, we've adjusted, and that's what gives us confidence we can scale further and faster in the years ahead. Australia taught us that every time we repeat the playbook, we get better and faster at running it. And you can see that on the learning curve here. Canada scaled from $50 million to $150 million in 6 years. Australia did it in a little over 5, and Europe is on track to reach the same milestone in just over 3. It's not a coincidence. Every market we enter carries forward the learnings, the infrastructure and the credibility from the last one. We've entered 15 markets without heavy capital investment. And every time we've proven the model works, we put more resources behind it. It will take us nearly 8 years to reach our first $0.5 billion of international sales. We know we can capture the next $0.5 billion in half the time because we've built the awareness, the talent and the model that will get us there faster. So here's our plan, building a $1 billion international business by 2030. That's a 20% compound annual growth rate and we take international sales past $1 billion across 30 markets around the world. Now I'm going to turn it over to Mitch and David, who are going to tell you about how Europe and Asia are going to fuel that growth in the coming years. And before I do that, here's a quick film to give you a sneak peek of the people, places and product of EMEA and APAC. [Presentation]

Good morning, everyone. Thank you, Scott. I'm David Heath. I'm the Managing Director for YETI EMEA. Having spent 35 years in the sports and the outdoor industry, I've had the privilege of seeing a lot of change, but very few opportunities are as compelling as the one we have in front of us today. I lead our business across EMEA with responsibility for delivering our growth strategy and continuing to build YETI's presence across our key European markets. Today, I'd like to share why we believe the opportunity in EMEA is so significant and how we're positioning YETI to capture it. So as you've seen, we've laid the foundation. We've proven the playbook works globally and are now accelerating in Europe. However, Europe is a highly fragmented market. So the execution looks a little different here, but the underlying formula isn't. We're field tested and we're ready to scale. That's exactly where we are with Europe. And there are a few reasons we believe the opportunity is so compelling. The size of the market, the product market fit with YETI and the traction we've already built. So let's start with the market. The European market is enormous, and we hold less than 1% of it today. The door is open, and there is no native outdoor brand we need to unseat here. Globally, the premium total addressable market is $121 billion, and Europe alone represents 20% of that at $24 billion and is projected to grow at a 5% compound annual rate from 2025 to 2030. And within that $24 billion, Home & Hydration categories make up the majority at 55%. Bags & Soft Coolers make up approximately 30% of the market and Hard Coolers and equipment at 15%. But all this only matters if we have the right to win, which we absolutely do. Europe already has a lot going for it, and YETI is uniquely positioned to serve 3 in particular. First, strong outdoor culinary and sport cultures. These are established pursuits we already engage well with. Second, high demand for premium and performance products; and third, a growing focus on hydration and sustainability with people carrying water bottles everywhere they go and paying attention to how much they drink. When you take a deeper look at the communities themselves, the fit gets even stronger. Europeans are already participating in the pursuits we serve and sports participation runs at roughly twice the U.S. rate. Outdoor pursuit participation is on par with the U.S., and this isn't a market we have to convince. It's one that is already primed. We move into European markets just like we do everywhere else with our same repeatable playbook. Phase 1 looks like it always does for us, getting started with specialists and independents going into communities where we knew there'd be a natural fit for YETI. In the U.K. and Germany, that meant barbecue culture, specialty outdoor shops and lifestyle-driven retailers. We followed barbecue into places we didn't expect next to brands like Green Egg and Gozney into garden centers and into corporate gifting. That early credibility became our launch pad in the U.K., and it's already rippling across the rest of Europe. As we move to Phase 2, we're extending the brand with grassroots campaigns, localized content to reach wider communities and adding additional partners. And then into Phase 3, where we fully scale the market through distribution partners, direct channels and national accounts. So where do we start? We are prioritizing 3 regions across Europe, each one with a different job. The U.K. is about acceleration. We already have real traction there, which we're looking to take up a notch. Germany, Austria and Switzerland are about unlocking the DACH region. The fit is strong, but we're still early, and there's work to do to open it up. And across the rest of Europe, the focus is replication, taking what we learned in the U.K. and the DACH and applying it everywhere else, notably through Iberia, Italy, France and the Nordics. A key piece of our playbook here in Europe is that we turn market fit into momentum through local relevance. We have over 30 active brand ambassadors and 180 more we've seeded across the region. Alongside the people we have built strong partnerships to, we have over 100 partnerships with globally recognized brands, our audience already trusts, Oracle Red Bull Racing, Team England at the recent Commonwealth Games, Jaguar Land Rover and the Defender brand, Scottish Rugby, Tottenham Hotspur Football Club, just to name a few, plus over 300 regional activations in 2026 alone, extending YETI's reach into the communities where those brands already live. A good example is the Game Fair, an event in Britain that brings together the agricultural, hunting and fishing communities. The Game Fair has become one of YETI U.K.'s most important annual community activations because it brings the brand directly into the heart of the field sports and the outdoor lifestyle community. Rather than simply display products, YETI has created numerous experiences that connect with attendees' passions. By showing up consistently year after year and creating authentic moments, YETI reinforces its credibility within the community while continuing to generate record-breaking sales. Our customer shops on-site consistently run out of capacity to meet the ever-growing demand we face each year. Another example of a strong, authentic partnership is Land Rover Defender. Over the last year, not only across EMEA, but globally to across 120 countries, 100,000 defenders have been sold with a handover pack that contains a Yeti Rambler. And it's not just the delivery where we show up. In January this year, we also partnered with Defender rally at the Dakar Rally 1 of the toughest off-road endurance races on the planet across the Saudi desert. Our hard coolers, Rambler Drinkware, Pangers, Crossroads and Ranchero bags were all integrated into the Defender, rally cars and stood up to the test and performed in some of the harshest conditions. Each one of these shows Yeti's durable performance-driven designs doing what they were built to do, playing an essential role in the moments that matter, not just sponsoring them from the sidelines. Now we are converting that credibility into much broader distribution and demand. Across Europe, we have 4 unique channels, each tuned slightly differently by market. Overall, from 2025 to 2030, we expect growth across all of them. but especially in wholesale and marketplace, seeing growth in the 40s, but the mix looks different depending on the market. In the U.K., wholesale is our strongest growth channel in dark, marketplace leads and across the rest of Europe, wholesale and marketplace both carry strong momentum with dot-com and B2B growing steadily behind them. As we get into more doors, we create and capture more demand. There are over 100,000 relevant doors across Europe, spanning every vertical we play in. Of those are yet relevant doors we should be pursuing. We're active in just 1,500 or 6% of them today. That gap represents a $700 million plus incremental wholesale opportunity, and it's the single biggest lever we have across Europe. We are already making progress on our goal -- we started last year with a 6-door trial in GO Outdoors, one of the U.K.'s largest outdoor retailers. We're now in 60% of their doors and in all of their major flagships. And by the end of this year, we'll be in 80% of all of Cott's world outdoors. These partnerships are a massive unlock for us in the U.K. I've already mentioned that Europe is fragmented and deeply diverse and complex. The same goes for its retail market, which is fragmented with more channels and more variation than what we have in the U.S. But that doesn't mean the growth isn't there. It means we must be more flexible in how we take advantage of it. In Europe, we're also applying the consumer vertical lens to our channel strategy. Today, we only play in just 2 of the 4 verticals in which we are more heavily indexed on outdoor. By 2030, we expect a real mix across all 4 verticals in Europe, outdoor at 50%, the clear leader, sports at 10% and home and work at 20% of sales. As we work to accelerate the U.K., let's consider how we've performed so far. When we first opened in the U.K., we were almost immediately disrupted by COVID. So we pivoted from focusing on retail expansion to direct-to-consumer and built out yeti.com. When the world opened back up, so did our attention on retail. We deepened relationships with specialists and independent retailers in Outdoor & Home, while building strategic brand partnerships and it worked. We have now become the #1 outdoor hydration brand in the U.K. One key community that is greatly influenced us within the U.K. is the surfing community. And we, in turn, have embraced it with Yeti's Board master's activation strategy. Rather than approaching board masters as a traditional sponsorship, YETI became an active participant in serve culture by creating authentic community-led initiatives, such as supporting the wavelength athlete barbecue, hosting a live surfboard shaping session with renowned surfer Ben Skinner and creating a server guest book that encourage interaction and connection amongst visiting athletes. YETI also invested in upgrading the Board masters competition providing local athletes access to higher-value ranking opportunities and attracting competitors from over 18 countries. Together, these efforts demonstrate YETI's commitment to listening to and investing in the communities it serves, transforming brand presence into genuine community value and positioning YETI as a trusted long-term contributor to the growth and progression of U.K. surf culture. This ongoing connection with surf in the U.K. has led to a high degree of resonance for the YETI brand in the South and Southwest of England. Especially in Devon and -- which are home to the U.K.'s largest surfing communities. It also happens to be where a lot of Londoners holiday in the summer months. So while our sales have been profoundly strong in this area of the country, we are seeing the groundswell that was built by the surface now catching on in London. Wholesale door growth in the capital has expanded sixfold in just the last 12 months, and Greater London is our fastest-growing region in the U.K. online. It's the same pattern from our consumer model starting with elites and cascading down to additional audiences with an emphasis on local relevance. Despite all these strides, the U.K.'s potential isn't anywhere near unlocked. There's room ahead through 2030. And if we look at where the U.K. sits today against the markets, we've already proven out the gap is stark. Sales per capita in the U.K. is just $0.18 to the dollar compared to the U.S. compared to $0.82 to the dollar in Canada and Australia 120 awareness tells the same story, just 31% in the U.K. against 57% or higher everywhere else, we've scaled. That distance is our opportunity. Simply catching the U.K. up to Canada is worth approximately $200 million in incremental annual sales. That's not a stretch. It's simply bringing the U.K. up to par with where our other proven markets already are. To capture that opportunity, we're building 1,500 wholesale towards 1,500 wholesale doors with national accounts. around 10 monobrand stores in key cities and locations, solid growth on yeti.com and marketplaces and deeper B2B partnerships. Putting it all together and the U.K. grows in the high 20s through 2030. This is more than one growing market. It's the beacon of what a fully scaled YETI market can look like in Europe. If the U.K. is the beacon, dark is where that light reach is next. By 2030, we're targeting more than 600 wholesale doors with a complementary wholesale digital presence around 5 monobrand stores in key cities Three or more marketplaces, including Amazon, Zalando and auto and replicating the same B2B model that's already working in the U.K. Together, dark grows in the high 40s through 2030 anchored in Germany, Austria and Switzerland. So that's the U.K., that's dark. Now put them together with everything else happening across the region, $80 million today, $350 million by 2030. And that's a mid-30s compound annual growth rate for the entire region, and it's not coming from 1 place. The U.K. keeps growing with wholesale, e-commerce, national accounts, and untapped verticals are still opening. Dark is our fastest mover through wholesale and direct and the rest of Europe, Spain, Italy, France and the Nordics, grocery distributors and sales partnerships. Now I'll hand it over to Mitch to talk about Asia, a place that we have the opportunity to apply everything we've learned from the very beginning. Thank you.

Thank you, David. Hello, everyone. My name is Mitch Whitaker. Managing Director for YETI APAC. Just a little background on me. I joined YETI just over 1.5 years ago, and I'm currently based in Tokyo. I spent nearly 20 years of my career living and working in Asia, building strategies teams and capabilities to bring global brands to life. Today, we've shown you the globally proven playbook that started in the U.S., Canada and Australia and how David is now going to bring it to life in EMEA. If there's anything you remember from me today, I'd like to be this. There's an incredible opportunity in APAC, and we're just getting started. So in Asia, we're asking the same questions that Europe asked, is the market attractive? Does YETI have fit? Can our playbook travel? The answer is yes. And Asia is ready for YETI's next breakthrough moment. So let's start with the town for Asia. It's massive, and we currently hold under 1% of it today. Of the $121 billion global premium market, Asia represents $40 billion, growing at a 4% compound on your rate. Home and hydration make up about half of Asia's premium addressable market. Bags and soft coolers make up another 45%. Japan alone represents nearly $13 billion bags market. [ Crea ] adds another $9 billion in bags. And our sales reflects that diversity. In our very first year of e-comm in Japan, our cell splits nearly 50-50, Dreamcore and everything else. This is key because showing up is a platform diverse brand is how we will win in Asia. So first, the outdoor market is yet has a strong fit in Asia period. I just want to make that statement. YETI has a strong fit in Asia period. First, the outdoor market is robust and it is strong. Hard coolers and rampers are already showing up at camp sites, campgrounds and youth baseball games across Japan. I like to cycle. So cycling 1 weekend in Tokyo in the suburbs and came across several baseball fields. As the rose of bicycles parked with coolers sitting in the front basket in some form of Dreamcore next to each young athlete. That was an aha moment for me. Second, there's a deep appreciation for premium product design and craftsmanship, which are hallmarks , which are hallmarks of YETI. And third, and importantly, temperature control, whether cold or hot is already part of Asian deep culture. One of our Japanese global ambassadors talk to me about the value of not only YETI cooler but yet warmer as part of health in Asia. That was another aha moment for me. Asia is an incredibly relevant market for YETI. We're just getting started to tell our story right now. This year has really been about business development, opening markets and channels across Asia. Now we're applying the same global playbook as we start to write our Asia chapter. The playbook is clear. We've talked about it a lot today, earn credibility, build the brand, then scale it. We're just launching our Asian markets right now. So our focus going forward is to rapidly grow our distribution channel, build credibility in places and pursuits or YETI resonates. And importantly, show up in ways that connect to our consumers. It all starts with cultivating local community and global ambassadors, as Bill mentioned today, to amplify our story as we lay the groundwork to scale. So Phase 1 is already underway. We ended 2025 active in 4 markets across APAC, including Australia and New Zealand, who've been there for about a decade. By the end of '26, this year, we'll be active in 11 markets and on a path to nearly 2,600 doors across APAC by 2030. That gives us sizable physical and digital footprint to build credibility and demand. But just as in Europe, not every market has the same job or role. Like Europe, we are focused on priority markets. To start, Japan, we're building credibility through Japan as the anchor for the Asia region since the region -- the rest of the region looks to Japan first. It's a very influential market. In Japan, we're now in 5 -- over 500 wholesale doors. We've launched e-com and launching our first YETI retail store in Japan in Q4 this year. It's very exciting. Next, Korea. We plan to leverage Korea as a center of influence where Japan is about credibility Korea is an aspirational market for the rest of Asia due to its K-Power, if you know, you know what I'm talking about. We will open our first Asia flagship in Seoul also in Q4. I'm telling you this store is going to be impressive. And next, China. We're laying the groundwork for meaningful growth in China. We've already started to engage with local communities and ambassadors as we prepare to enter China in select e-com marketplaces starting Q4 this year. We'll build brand awareness in preparation to start scaling China in the near future. So in Asia, we're not just trying to build demand. It's already there. It's waiting for us to show up. Outdoor pursuits see roughly 3x the participation we see in the U.S. and sport participation runs right in line with that. What's been a great signal for us is how our core communities in Asia are welcome us with open arms and excited that YETI is finally here. So in Japan, we just hit our first year anniversary, and we've made meaningful progress to build brand presence. We currently have 12 local ambassadors, including 2 global ambassadors from Japan. And we're aggressively seeding and connecting with YETI brand right individuals across Japan across our IDI communities in Japan. The 20-plus brand activations to date are helping us build credibility and trust as we start amplifying our presence. That also means shown up where it matters most. So recently about -- within the last 2 months, there was a pretty devastating earthquake in Kumamoto, Japan, kind of Southwest in Japan. Our team got together, we donated Rescue Red, Tender coolers and Roadies, silo jog, silo water jugs and ice packs to assist relief operations on the ground. We're welcomed with warm arms. These partnerships and relationships matter. We'll drive growth through all 3 channels working together. We've already built strong wholesale partnerships in -- across Australia, now in Japan and soon the rest of Asia. D2C, both physical and digital will be important channels to tell our brand and product stories, particularly in new markets. We plan to have approximately 180 retail stores across APAC. The entire region by 2030. Most of them run through strong partners. Digitally, we're growing e-com while leaning into strategic e-comm marketplaces. And lastly, but importantly, we'll use smart localization really around content and product to make sure we're showing up in a very globally consistent, locally relevant way. Look, for all these reasons, we have a bullish outlook on APAC. We expect the region to more than double from $150 million today to $300 million by 2030, a low 20s compound annual growth rate. In Asia, that growth will be led by Japan, Korea and China as we expand wholesale, digital and YETI retail stores, in addition to launching customization. We expect low triple-digit growth in Asia. In our Australian and New Zealand markets, it's about penetration into urban markets and communities, including Melbourne and Sydney as we expanded 80 retail and sports. We are extremely healthy in our Australia and New Zealand markets and have room to grow high single digits. So let me step back and kind of paint the whole picture. It was started in a handful of markets is becoming something much bigger. Canada proved the brand could travel. Australia proved the playbook could scale, and Europe is proving we can do it faster. And now in Asia, we're taking everything we've learned across all these markets and are at the beginning, but with extreme head start. Every market makes the next market stronger. Canada Australia, the U.K., Dot countries, Japan, they all started with the same discipline and followed the same pattern. Each market is scaled faster than the one before it because the playbook, it's proven. And it's locally relevant every time we put into practice. The places change, the pursuits look a little different. The cultures are nuanced, but what makes YETI does not change. So when we look at the opportunity ahead, we don't see just see countries on a map. We see more places where YETI belongs, more communities to make their own in a much bigger world for YETI than the one we serve today. And we're just getting started. With that, I'll turn it back to Matt to wrap up before we walk through the numbers. Matt?

Thanks, Mitch. Everything you've heard so far, that's why I'm here. That's why this team is motivated. And I think that came clear. And you should sense it from this team because they represent all the -- YETI and what we believe in the future. But I'm going to do something a little out of sequence. We're going to have Scott come up. He's going to talk about the model. He's going to talk about the building of the financial algorithm. But I want to talk about what's next. When you put everything you've heard today all together, you can see how much runway remains in front of us. there's a ton of opportunity. You heard that word opportunity. You heard model, you heard playbook, you heard system. We built the capability to go capture it. brand, innovation in the U.S. around the globe. We've earned the right to be bolder and make no mistake, I'm fully behind it. But more importantly, I'm confident we have the team and the systems to make it happen. So this morning, we're focused on the next $1 billion of revenue, the next $1 billion product platform, $1 billion outside the U.S. You just heard that from Mitch and David, $1 billion plus of free cash flow. You've seen how that happens at pace with balance and delivered consistently. But what I want to do before I hand it to Scott is I'm going to go one step further beyond the plan. And what I'm going to talk about is focused and deliberate. It's not a distraction, but we're moving towards it. So here's where we're going next, in bags and soft coolers. You heard the investment case from Elaine. This is a massive global category, and we're still early. What I'll add is we're actively extending into travel in everyday use, building on what day trip Camino, Crossroads and Scala have started. One thing within that, we want to explicitly call out luggage is a discrete area of opportunity. Today, we have a limited offering and 2-wheeled luggage, but there's real expansion potential. hard side, further soft side, for -- luggage, they're all logical next steps, and we're heading there with pace. Once in that market, it opens incremental expansion opportunity across the full travel category globally. The opportunity in soft coolers and bags is compounding and only a portion of it is captured in what we presented today. Next, apparel. We already see the consumer desire and significant upside of YETI branded apparel, hats, teas, hoodies, sun shirts. Those who were here saw some of it last night. People want to wear this brand. and we aren't fully addressing the demand. We see the pockets of success -- in our stores, the expansion potential is meaningful. But the bigger opportunity long term is technical performance apparel. Applying the same durability, the same field tested standards, the same design rigor we bring to everything else we make. It's a large fragmented global category, open to innovation and with space for YETI to lead, doing apparel our way. In a few weeks, you'll see our first limited releases, a range of insulating and outer layers just in time for the weather to turn. These are going to be available through select distribution partners and select flagship specialty. We're going to learn and we're going to scale into it. Most importantly, we'll be showcasing the capabilities and the talent that we've acquired over the last couple of years. The design and materials expertise we have gathered is outstanding. This is going to be fun to watch. And in home and hydration, you heard a good bit about it from Hannah today. But cookware is a new frontier as she discussed. Carbon steels in the market, the early response has been strong. It was recently recognized best of by a number of publications. It's a great example of product ready to be executed by a commercialization engine, the one that Stuart, David and Mitch talked about. Cast irons and natural anchor in the platform. It's very YETI. The next large and attractive market expansion is enabled cast iron, continuing the theme of live fire outdoor to indoor translating the YETI philosophy and product trust to people who take cooking as seriously as we take everything else. In the backyard, the camp site, the kitchen. And then global expansion. You heard from David and Mitch today, you understand how excited and fired up they are. But our biggest chapter is still in front of us. And only some of it is included in the growth algorithm that Scott is going to talk about. There are strong markets in Asia, particularly in China, the Middle East, Central and Latin America. We expect to build into those over time and over the horizon. As those come fully online the impact to the algorithm is meaningful. And then there's our YETI experiences. We've been testing and learning and experiences. You heard today that story about and you may have seen the YETI open. Come to life and fishing, upwards of 1,500 anglers joining a weekend fishing event in 2 weeks, headline by YETI. Now in its third year, Bill and team are going to be up there doing what they did last night but out in the community. In golf, we partnered to host the recent and oversubscribed YETI Cup at Cabot, and we do our annual fishing holes, layer those types of events on top of everything we do across 14 communities 200-plus ambassadors, 450-plus events, 350-plus partnerships all over the world, and you can see the potential for YETI experiences. YETI as a brand stands alone is uniquely positioned to bring people together around shared passions and interests. The opportunity is bigger than 2 sports and a couple of events. That's what our brand team does. And from our earliest days, we brought people around the campfire. The YETI experiences are evolving into a platform, bringing our communities together where people want to meet, a place where all types of fans, athletes across our communities and beyond. Come together to share their obsession for whatever their pursuit is and their connection to YETI. Everywhere YETI's deeply embedded experiences has relevance. It strengthens our connection to those who built this brand. And it introduces us to those just discovering it. I'm really excited to see where this could go, connecting product to unique experiences. Now everything you heard today, the brand expansion the tune commercial engine, international accelerating, bags and soft coolers scaling. That's what's in the number Scott's about to talk you through. We'll walk you through. But at scale, apparel, cookware, travel and luggage amplified, China, Middle East, Latin America and an experienced platform like the YETI open, those are brand-right potential and realizable upside. In the systems we built the ones you've seen in action all day today. It's what gives us the confidence that the next billion is within reach, and that's just the beginning. I'm going to turn it over to Scott to hit the financial plan. excited to show you what we've got next. Thanks for your attention today. Scott.

Okay. Thanks, Matt. So earlier today, you've heard the strategy. the brand, the products, the go-to-market model, the international opportunity, let's now connect those strategies to the financial outcomes they'll produce for shareholders. The core of our thesis is straightforward. We have multiple avenues to grow an operating model with meaningful opportunity for leverage and productivity and a disciplined approach to capital allocation. When those elements work together, sales can grow at a healthy rate, operating income can grow faster than sales, and earnings per share can grow faster than operating income. These are the foundational elements to financial model built to compound. Several of you have asked me about my observations in my first few months on the job here at YETI, and I put these into 3 buckets. The first is that YETI has an incredibly strong foundation. We have the durable brand you've heard about this morning. a disciplined operating model, healthy margins and a strong balance sheet. The second is that yet is ready to scale. We've got the experienced leadership team, real capabilities and a strong record of executing on what we said we do. And the last, which is the one that gets me most excited is we have a very long runway. We've got room to deepen our relationships with existing customers, expand into new categories, as Matt just described, new geographies and new distribution. We have multiple distinct growth levers ahead. And every turn new opportunities present themselves. That's what surprised me most of my first 6 months on the job, Rarely does a week go by where we don't identify a new opportunity. There, the opportunities are everywhere. It's just about execution. Some companies give you 1 or 2 of these, yet it gives you all 3 and that combination is rare. It's not just about 1 geography, 1 product or 1 initiative, it's a combination of a durable brand, a growth platform, a management team that understands how to scale and a financial engine to deliver excellent shareholder returns. This combination of factors has already created meaningful shareholder value. From IPO until 2025, sales compounded at 13% and earnings EPS at 15% and total shareholder return at 15%. Over that same period, we generated cumulatively $1.4 billion of free cash flow. These outcomes tell us 2 things: One, we've been able to translate brand demand into profitable growth; and two, our asset-light model has converted a meaningful portion of that growth into shareholder returns. This team has a track record of delivering performance. I'm going to walk you through a financial algorithm in 3 parts. First, where does our growth come from? Second, how do we allocate capital? And third, how do those 2 things combine to create a financial model built to compound? None of these stand alone. Growth creates scale, productivity and operating leverage translates scale into faster earnings growth and cash generation gives us the capacity to reinvest in the highest return opportunities while returning capital to shareholders. Since our IPO, we've grown from $800 million to $1.9 billion, that's a 13% CAGR, as you mentioned before. Home and hydration remains our largest category and the diversification strategy within the portfolio continues to deliver results. It's an important anchor, but it's not the whole story. Gearing equipment has expanded and bags and soft coolers have become a meaningful growth leg. The fastest-growing portions of the portfolio are broadening the ways consumers use YETI. While some of our longest-standing items like the Tundra 45 and the Rambler 20 continue to deliver positive sales growth reflecting the durability of these iconic SKUs. Combining that solid base with our powerful innovation capability gives us confidence in our long-term mid- to high single-digit growth expectation. Looking to 2030, we expect the portfolio to become larger and more balanced. We expect to deliver mid- to high single-digit sales over this horizon. The individual pieces you've heard about from my colleagues this morning throughout the day, add up to the high end of this range. And while or intend to deliver that and more, the economic model works for the business very well even at the low end of the range. and I'll talk to you more about that in a few slides. Home and hydration will continue to grow and remain the largest category, but a greater share of the incremental growth is expected to come from bags and soft coolers, gear and equipment and newer platforms. That mix shift is healthy. It creates more usage occasions, attracts more consumers and reduces concentration around any single category. The path to mid- to high single-digit growth is not dependent on perfect execution. It's built from several engines working together, core innovation, commercial optimization, distribution expansion and international growth. Our job is to sequence the investments carefully and scale each platform as the consumer and the economics validate it. Our international business is one of the clearest examples of the portability of the YETI brand. At IPO, International was only 2% of sales. By 2025, it represented 21%, with sales compounding at over 57% for the period. That progress matters not just because of the growth rate, but it shows that the playbook travels. And globally awareness of the YETI brand trails out of the United States, but we're making real progress, and we're starting to see the results as several newer markets are really scaling. And that early momentum gives us confidence in the opportunity, while our market-by-market approach keeps us grounded in local consumer response and economics. Our newest markets are already scaling faster than in the past, and Europe is our next major unlock. It's a large market with a lot of potential. And we're starting to have enough scale in Europe where the significant growth rates that we're already seeing there are becoming consequential to enterprise performance. And while we're just getting started in Asia, the early signs are positive, and it points to a significant opportunity over time. By 2030, we expect international to approach roughly 35% of sales compared to 21% in 2025. That doesn't mean applying one global formula everywhere. It does mean leveraging the approaches that we have been successful in the past, have you heard about this morning a few times, earn trust and credibility first, activate the brand more broadly and then scale through extended distribution. We expect the United States to continue growing at low to mid-single digits, while international grows in the mid-teens to 20% and becomes a larger part of the portfolio. This geographic mix gives us another durable growth engine and a more balanced company. To deliver against this opportunity, we'll remain deliberate in our investment pacing talent deployment, inventory management, and we're going to drive market level accountability. Growth opportunity alone does not create shareholder value. That return depends on what we spend, when we spend it and what we receive in return. And that's where the second part of the thesis is disciplined capital allocation. We intend to fund the opportunities that strengthen the long-term earnings power of YETI, maintain financial flexibility, return capital to shareholders when it's the better use of cash. We think about every dollar the same way against 4 priorities. The first priority is to fully fund the highest return organic growth opportunities, including international expansion and innovation. The second is we were very selectively consider tuck-in acquisitions when they accelerate capability, provide intellectual property or talent or speed to market that will be difficult to replicate organically. And third, we'll maintain a healthy balance sheet, keeping leverage low, sometimes at 0. We believe that maintaining that flexibility is strategic, particularly in a dynamic consumer environment. Fourth, we return capital to shareholders. After funding those priorities, share repurchases are our primary vehicle for returning excess cash to shareholders. The governing principle across all 4 uses is return on invested capital. We are not optimizing for activity. We're optimizing for durable per share value creation. We have a capital-light model with high-return investments, so the bar for spending do internally is high. If a dollar can't clear that bar, it goes back to the shareholder. An important feature of this plan that growth investments and margin expansion are not competing ideas. We see meaningful opportunity to drive productivity across sourcing, marketing, technology and enterprise processes. We've launched an internal program called Project upcycle to deliver these gains, and I'll talk more about that in a second. The savings from that program creates a source of funding for the capabilities that drive future growth, including international expansion, innovation, brand building and digital and customization. We'll evaluate these investments with the same discipline we apply elsewhere, clear ownership, defined milestones, expected payback and measurable outcomes. So let me circle back to project up cycle because it's central to how we bridge top line growth to sustain margin expansion and operating income growth. Project up cycle is a $100 million enterprise-wide productivity program. And I want to be clear about what that means. It's a discrete commitment with a comprehensive governance model, supported by both dedicated internal resources and external support. Every work stream as an owner, a time line and a financial target. So let's talk about the scope. On the cost of goods side, we've identified a $50 million opportunity. That's more than 15 active projects today, spanning raw materials, finished goods, packaging as well as value engineering and supply chain optimization. On the expense side, we have identified another $50 million opportunity. That's 30 active projects today covering logistics distribution and spin pools up and down the P&L. It also includes marketing optimization, making every brand dollar and performance dollar work harder and importantly, AI process improvement. We're developing new tools to drive efficiency and speed across the organization. That's 45 active projects balanced across the P&L already in motion. We expect this benefit to build over time rather than arrive all at once. The purpose of project up cycle is to amplify our future, to build a more productive operating model, 1 that does 3 things at the same time. First, it funds the growth initiatives you're hearing about today, brand innovation, commercialization and international. Second, it covers any mix pressures that may occur over time. And third, it expands margins through sustainable improvements, not onetime actions. And as Matt summarized earlier in the program, fuel the investments, expand the margins at the same time. That's the commitment. We're highly selective on inorganic opportunities and our track record shows it. 4 acquisitions over 12 years in bags, home and cookware, powered coolers and hydration. We use M&A to buy speed or capability, typically in the form of product knowledge, intellectual property specialized talent or development capacity that can strengthen the YETI platform. It's simply a form of product development and typically small in scale, having spent only $116 million across 4 transactions. We're really happy with the results we've seen in our recent acquisitions. Mystery Ranch gave us capability and talent that serves as the backbone to our fast-growing bags business. Helamix gave us product adjacencies with a real volume potential and really strong early trends. Our power cooler and butter pad acquisitions gave us capability and innovation in categories we couldn't build fast enough on our own. Our discipline goes far beyond the term sheet. We guard the brand, integrate quickly and measure the returns. The threshold is high. Any transaction must protect brand trust, have a credible integration path and offer attractive returns relative to organic alternatives and returning cash to shareholders. We'll continue to measure acquisitions by the value they create, not with the number of deals we complete. Since the IPO, total debt has declined from $330 million to approximately $74 million and debt-to-EBITDA has fallen from 2.2x to 0.2x. That financial strength gives us choices. We can continue investing through volatility, respond to attractive opportunities, manage external risk and return capital without placing the long-term health of the business at risk. We carry load to no leverage on purpose. It's strategic flexibility, a balance sheet built to fund growth return cash through buybacks and still leave us flexibility for future opportunities. Through 2030, we'll generate more than $1 billion in free cash flow, nearly all of which will be available to invest in the business and return capital to shareholders. Since the IPO, we have repurchased nearly $700 million in shares. Cumulatively, that equals 17.8 million shares and roughly 20% of diluted shares outstanding. From 2024 to the end of 2026, we will have returned approximately 100% of free cash flow to shareholders through repurchases. Supported by our cash generation, confidence in our earnings outlook -- we target returning a minimum of 50% of free cash to shareholders. And to say it again, from 2024 until the end of 2026, we have returned approximately 100% of free cash flow to shareholders. Repurchases are not a substitute for growth. They are an outcome of a model that generates more cash than is required to fund its best opportunities while maintaining a strong balance sheet. We will remain disciplined with the objective of increasing long-term value on a per share basis. Put growth and capital allocation together and you get our financial algorithm, how we turn top line into earnings growth year after year. We have a high level of conviction about the long-term growth prospects for this business. I'm showing a mid- to high single-digit long-term sales growth algorithm in the left column, to illustrate how the economic model of YETI can deliver strong results even at the low end of the range. And while there's an opportunity to be a double-digit grower over time, this model works even at lower sales levels. At the low end of the range, mid-single-digit growth, we're assuming 0% U.S. drinkware growth, low single-digit global drinkware growth, no contribution from additional domestic distribution modest growth in our bags business, new product development largely remains within our existing categories and a continuation of the strong results we're seeing in the U.K. and the rest of our international business. This implies low single-digit growth in the U.S., while the international business contributes more than half of the total growth. And with these modest assumptions, combined with our commitment to drive productivity, we would expect to drive margin expansion return capital to shareholders and deliver high single-digit operating income growth, along with low double-digit earnings growth per share. The model works at mid-single-digit sales growth. However, as you've heard this morning, our expectations are higher than that and the expectations you heard from the team add up to the high end of the range, the middle column on the chart. We'll do all of the above, but see opportunity well beyond that. will drive product development into new product lines adjacent to our existing portfolio. And at the conclusion of this morning's presentation following Q&A, you're going to have an opportunity to see some of our exciting new products that extend the reach of our portfolio into new buying occasions. Both for new and existing customers. We further expect to see greater levels of sales productivity in the U.S., including through our go-to-market model that Stuart talked about this morning, along with our expansion of our distribution footprint. We believe that drinkware can grow low single digits in the U.S. and the continued diversification that Hannah talked about will drive that growth. Internationally, we see incremental opportunities, particularly in our less penetrated geographies across Europe. Combine these growth avenues with higher growth expectations for the bags business, along with productivity and operating leverage, and we get high single-digit sales growth, low double-digit operating income growth and high teens EPS growth. Again, the model works. As Matt outlined in the morning wrap up, our aspirations don't end there. Our product development engine is firing on all cylinders, and we see opportunity beyond our existing product footprint with new categories, new platforms, along with further extensions of our existing business. Globally, we have significant opportunities in scaled economies throughout Asia, the Middle East, Central and Latin America. None of this is included in the algorithm. There's a path to build into a double-digit growth over time. but the economics of the model don't require it. And that's why we're showing a mid- to high single-digit growth. It's not a promise that every year will progress in a straight line, but we're committed to driving robust growth and growing profits ahead of sales. Delivering strong total shareholder return starts with sales, and we're modeling high single-digit sales growth. You then had the contribution from operating margin expansion related to productivity and sales leverage. We further had the impact from the deployment of free cash to share repurchases and will deliver low double-digit to high teens earnings growth per year. As for the multiple, well, that parts up to you, but we believe this formula will deliver an attractive return profile for our shareholders. The logic is deliberate, multiple categories and geographies create sales durability. Scale and productivity allows earnings to grow faster than sales. The asset-light model supports strong free cash flow conversion and capital discipline then determines whether that cash is reinvested held for flexibility return to the shareholders through repurchases. The result is a credible path to mid- to high teens earnings per share growth. That's our TSR algorithm straightforward and repeatable. So let's summarize the financials. Mid-single to high single-digit revenue growth, operating income growth of high single to low double digit, adjusted EPS growth of low double digit to high teens and cumulative free cash flow of $1.2 billion to $1.4 billion. So let's bring it all together. YETI has multiple, durable growth engines, both within the United States and international markets. We have a financial model designed to turn that sales growth into faster operating income growth through operating leverage and productivity. We have an asset-light model that generates cash. strong balance sheet and a commitment to repurchase shares. Together, those elements create a clear incredible path with operating income growing faster than sales and earnings per share growing faster than operating income. The key is not any single number on this page. It's the reinforcing system behind the numbers. Brand strength creates permission to grow. Capabilities convert permission into sales productivity convert sales into earnings and capital allocation amplifies per share value. That's why we believe YETI can generate attractive durable returns for shareholders. That's the case. Clear, compelling and compounding. I'd like to thank you all for your time commitment and for your interest in Yeti. We're going to take a quick pause while I invite my colleagues up to the stage so we can take your Q&A. Thank you very much.

Okay. Let's get started. So we have a couple of microphones around here. We'll take your questions, just raise your hand, and we'll come by and grab it right here. All right, Peter.

Thanks, guys. Yes, Peter Benedict at Baird. Thanks for all the information today. Super helpful. want to clarify. So the beyond the plan stuff, Matt, that you mentioned at the end, luggage, there was the apparel stuff, there was some international cookware. Are we to understand that that's the part of the outlook here that would maybe accrue to that low double-digit side of the algorithm. That's basically my first question.

Yes. So a couple of things. There's a lot of things in that low double digit if you kind of follow the line all the way through how you build up drinkware, how you build up international, some of those other things. The beyond the plan stuff is really all on top of that, but it's -- some of it's in the low double digit, but that's also some things that are out on the horizon. So you really -- as you think about the way Scott laid it out, he laid out the building blocks across products, categories, geographies newness, and that's really what we wanted to present today. So you understood that there's a lot of vectors of growth, as Scott talked about.

Yes. And my follow-up is just kind of on the -- I guess, the technical apparel. Who's leading that effort? And just maybe talk a little bit about your approach to inventory not thing, it sounds like it's going to be a limited launch, but just maybe build on that a little bit more.

Yes. So it is very early days in when we start thinking about the size and scale of it. And we talked about building into it, learning, as we've said, you'll see some things here in a few weeks. We have a small team in Denver that's actually working on that. the result of the work that you'll see in a few weeks is the work that they've been doing. It's led within our soft goods team. So underneath the parallel between bags, cut and so soft goods, really Denver is becoming the anchor point of that part of our business.

Phillip Blee from William Blair. So just building on that real quick. So you talked about a little bit just on the newer categories that you were talking about before when you went into cookware, bags, you did it through an acquisition, you think about luggage and apparel, technical apparel. I guess in order to scale or really expand those, do you think it would be necessary to take on another tuck-in acquisition.

Yes. No, let me kind of anchor back on today. Today is really about the primary things that you heard built up by this team and what they're underwriting. What we wanted to do at the end of what I want to do is give a vision to things that were already in flight that are additive for the future. But what you can take away from today is those things are, as you will see some of you in the room will see are in-flight by the teams we have that are on board that are yet. So we don't look at those as M&A necessarily. We look at them as organic builds.

Okay. Great. And then just quickly on the kind of wholesale opportunity here. I think you gave kind of quantified the number of Pro shops, I think, 6,000 available. When you think about just all the kind of specialty sporting goods stores out there, I mean, tennis running, cycling, can you maybe contextualize where you're at right now in those stores, where you would expect to be by 2030 as part of your kind of trend then any plans, I guess, to expand any national retail presence would be helpful as well. Thanks for the question.

So the example we used around green grass is really meant to 0 in on a particular opportunity. You can extrapolate that more broadly as we look across our consumers, our focus on consumer verticals. And what you'll find is that in any one of those consumer verticals, there's room for us to grow. It starts, first and foremost, with the partners we have. We have a lot of opportunity with our current partners, both in national and specialty to drive greater productivity in shelf space expansion, and that's where we're starting first. And at the same time, we do see opportunity for us to continue to grow in those zones and drive expansion. One of the things I love about Bill's presentation as he talked about the specialty model and how important that is for creating that depth in the discovery and the relationships there. So that's a really critical part and enables us to do that and then look for a broader national partners as we go.

Randy Konik at Jefferies. You talked about in the presentation slides, there was a slide that talked about that 20% of sales were driven by new products over the last 2 years. I guess a question for you, Matt, is how do you think about that if we were to say that same kind of dynamic or data point. 5 years from now or a few years from now, and when you think about the other in Europe, it was commented that 50% of sales from outdoor, 10% from sports, home 20% and work 20%. If you think about those 4 verticals, how, again, I guess, 5 years from now, when you think about the business orienting or changing for those different verticals than they've been in the past?

Yes. Why don't have Hannah take the 20% the vitality and then David can talk a little bit about the Europe split.

Nice to see you, Randy. So yes, on the vitality question, I'd say if I look about the 20% of 2025 revenue, that's largely been consistent in terms of our product vitality year-over-year. if I play it forward in 5 years, I would say that it will vary depending on the product platform that we're talking about. And so for some of our more established categories, that vitality will largely stay consistent in areas where we're really expanding such as bags and soft coolers, we mentioned a few other opportunities here. You might see that number go up quite a bit in terms of the revenue and the contribution there. But all of this is really balanced. I think the other point that we made is really it's just a combination of 2. It's the vitality absolutely, and that is our innovation really working and driving and entering new occasions. But then it's also the longevity. And those are the products that are absolutely durable and that's durable trust and its durable revenue.

Yes. Just so just on the Europe perspective, I mean, we're in a phenomenal position at the moment in the sense that we've only really just got going, and we're only really in 2 verticals right now. We've got a these other 2, the work and the sports, we haven't really opened up. So that's a real focus for us, but we want to do it in the right way, the Yeti way that playbook way that we always talk about, about authenticating, going through specialty first and grounding it, getting those elites all on board. And we've got some amazing plans coming up. So I think the opportunity there is it's a projection that we've got, but the opportunity in across the region, not only within outdoor that we're currently at with the other 2 that I talked about that we're not in is just phenomenal.

And I guess my follow-up would be just again for Matt. Maybe give us some perspective or dimensionalize numerically in the last 1 or 2 years, how many new products have launched under the Yeti brand? And how did that compare, let's say, 3 or 4 or 5 years ago? And then how has that pace of innovation increased in the last 2 years, how do you think about that accelerating even further over the next 2 to 4 to 5 years ahead?

Yes. We'll -- I mean, we can go back and get you that number numerically. But I think what's obvious is the pace over the last 3 years has accelerated meaningfully, not just innovation within platforms we have today, but the expansion. You saw it, if you go back and review that slide, Hannah had, that showed the buildup of where we were to where we are and where we're going from a platform build-out. It's been unbelievable. And really coming on the back end of a lot of supply chain, a lot of access to our development locations and our manufacturing partners in that [ 2021 ], '22 period. I think what you've seen since 2024, 2025, year-to-date in 2026, is that continued acceleration. It's the result of this team, this work, the way we organized our team around the 3 focused product groups. But if you go back and look at that time when that acceleration started, and you rewind 2 years, it was really coming out of that disruptive period. We came out of it shot out of a cannon. And we're continuing to build into that. that 2 years was about the product development time, plus or minus, depending on what the product category is. And so you got a couple of things. You've got the acceleration you've got what Hannah talked about, which is the continued process improvement that's shortening the development time. And then you add in the commercialization and go-to-market work that David mentioned and Stuart are leading. And that's how you build that compounding thing. We're at a point now where we can create plenty of product. And there's ideas beyond, and we'll talk more about that a little bit later. But what the commercialization engine catching up to that, that drives the durable growth and then they both end up challenging each other, innovation challenges the commercialization execution, the commercial icon execution and the segmentation creates more opportunity. And that's where we feel like we're really kind of stepping into our rhythm and momentum there.

Joe Altobello with Raymond James. A couple of questions on the margin. If my math is right, it looks like you're looking at a 2030 operating margin of about 16.5% to 17%. So you talked about the $100 million of cost savings I imagine operating leverage is part of that expansion as well. But what the big drivers are there? And maybe secondly, on the $100 million, how does that scale over time? Is it sort of ratable? Or is it back-end weighted?

Yes. Look, great question. Thanks for the question, Joe. We have the benefit of having really healthy margins and they've proven durable over time. And so we're starting from a position of strength as it relates to our margin profile. We talked about project up cycle through accomplishing 3 goals. So one is funding the growth that we talked about today. We have significant ambitions to continue to fuel the growth of the business. Second, which is there are minor mix shift elements that come along with some of that growth, not as much as you might think, but this -- we think this would sufficiently cover all of that. And then third is to expand margins. We kind of think about that 3-layer stack as an objective as the use of funds from the source of funds delivered from the productivity that we're driving. And just to be clear, I just want to go back to the program. This isn't an idea. These are projects that we started a while back. They're in flight. We're seeing results already. It's going to build over time. have kind of laid out specifically the ratability of that. It isn't kind of one big item. It's spread costs, dozens of initiatives some of which are quick turn, others which are a little bit more complex and take longer to execute. So think about that spread out throughout the duration of the time horizon that we're conveying here. But we're excited about what it does for this business, the opportunity to have the healthy growth that we saw in the presentation this morning. Combine that with operating income growing faster than sales. in EPS growing faster than operating income. We feel like this is a really good formula for success for the shareholder.

And we're going to generate a bunch of cash.

Peter Grom from UBS. So Hannah's presentation gave a lot of facts around the opportunity with existing consumers, right? But I think there was a number of numbers given out that what the sales could look like if you converted those with consumers that resemble the YETI consumer. So I'm just curious why it's been harder to convert those consumers? Is it awareness? Is it competition? Is there something about the brand that's misunderstood. It just seems like it would be a pretty significant opportunity if you just convert a small portion of those consumers.