Yeti Holdings (NYSE:YETI) has been downgraded from Sector Weight to Underweight by KeyBanc analysts. As a result, shares dropped more than 5% intra-day today.

The analysts expressed concerns based on their research within the quarter, which indicated a growing skepticism regarding Yeti's ability to achieve peak-season revenue growth as anticipated, even with the introduction of the soft cooler refresh. Additionally, the analysts doubt the company's ability to sustain double-digit growth in the medium term due to ongoing email promotions, high inventory levels in the wholesale channel, widespread in-store discounts, and weaker direct-to-consumer (DTC) trends.

The analysts explains that recent price movements and additional evidence of continuous promotional activities, increased competition, and a decline in DTC performance have heightened the potential for downside risk. While initially hesitant to downgrade Yeti in mid-June, these factors have led the analysts to reassess their outlook on the stock.