SharkNinja, Inc. ((SN)) has held its Q4 earnings call. Read on for the main highlights of the call.
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SharkNinja’s recent earnings call reveals a vibrant performance marked by robust financial growth and strategic advancements. Despite facing challenges such as supply chain adjustments and tariff impacts, the company maintains a positive outlook fueled by strong growth metrics and strategic initiatives.
Exceptional Q4 and Full Year Financial Performance
SharkNinja reported an impressive 30% increase in net sales during Q4, complemented by a 32% rise in adjusted EBITDA. For the full year 2024, both adjusted net sales and adjusted EBITDA recorded a 32% increase, showcasing a compounded annual growth rate of 24% in adjusted net sales over the past two years. These numbers underscore the company’s strong financial footing.
Strong International Growth
International sales were a significant highlight, showing a remarkable 49% increase in Q4. Notably, Germany and France exhibited triple-digit growth, contributing to the international business generating a substantial $1.7 billion in net sales outside North America in 2024. This expansion demonstrates SharkNinja’s successful penetration into global markets.
Successful New Product Launches
The year 2024 saw the launch of 25 new products, with SharkNinja branching into new subcategories such as coolers, fans, and skin care appliances. Among these, the Ninja SLUSHi and Shark CryoGlow stood out, with SLUSHi achieving over 0.5 billion social media impressions, illustrating the company’s effective product innovation strategy.
Continued Margin Improvement
SharkNinja has successfully expanded its adjusted EBITDA margins by nearly 300 basis points over the past two years, including a 220 basis point improvement in adjusted gross margin this year. This reflects the company’s ongoing efforts to enhance profitability through operational efficiencies.
Supply Chain Challenges
The company anticipates elevated supply chain costs continuing into the first half of 2025, attributed to strategic shifts in production outside China aimed at mitigating tariff impacts. This proactive approach highlights SharkNinja’s commitment to navigating complex supply dynamics.
Impact of Tariffs
The company is adjusting to the recent 10% China tariffs by incorporating them into their 2025 guidance. While this adds complexity and potential cost pressures, it showcases SharkNinja’s forward-thinking approach to managing external challenges.
Mexico Market Transition
In Q1 2025, SharkNinja plans to transition Mexico from a distributor to a direct market model, which will result in a one-time revenue reversal and short-term sales impact. This strategic move aims to solidify the company’s presence in the region.
Forward-Looking Guidance
SharkNinja’s 2025 guidance projects a net sales growth of 10% to 12%, with adjusted net income per diluted share anticipated to rise by 12% to 15%. The company expects adjusted EBITDA growth of 13% to 15%, targeting between $1.07 billion and $1.09 billion. These projections indicate a continued positive trajectory, factoring in the current tariff landscape and planned capital expenditures.
In summary, SharkNinja’s earnings call reflects a company navigating challenges with strategic dexterity and innovation. The positive sentiment is reinforced by strong financial performance, successful international expansion, and promising forward-looking guidance, suggesting continued growth and resilience in the face of external pressures.
