SharkNinja (NYSE:SN) FY 2026 Conference January 12, 2026 09:00 AM ET Company ParticipantsAdam Quigley - CFOMark Barrocas - CEOConference Call ParticipantsSteven Forbes - AnalystSteven ForbesAll right. Well, good morning, everyone. My name is Steven Forbes, Consumer Discretionary Hardlines Analyst at Guggenheim Securities, and we have the pleasure of hosting SharkNinja's CEO, Mark Barrocas, and CFO, Adam Quigley, for a fireside chat this morning. Mark, it's sort of hard not to go back to early December when ...

Financial Data and Key Metrics Changes - The company had a strong guidance heading into Q4, anticipating double-digit growth, and confirmed that the holiday season performance was robust, with broad-based growth across retailers and product categories [2][3] - The domestic and international businesses both performed well, with notable success in new markets such as Mexico and parts of Europe [2][3] Business Line Data and Key Metrics Changes - The direct-to-consumer business thrived during the holiday season, with significant sales through platforms like Amazon and Costco [3] - The company is launching a robust product roadmap with 25 new products in 2026, building on pent-up demand from 2025 [6][7] Market Data and Key Metrics Changes - The company reported strong growth in its Latin America business, particularly in Mexico, which saw triple-digit growth [37] - There is a growing demand for SharkNinja products in new markets like South Africa, where consumer awareness is already high before the official launch [38][39] Company Strategy and Development Direction - The company aims to innovate across various price points, maintaining affordability while also introducing premium products [15][17] - The strategy includes enhancing direct-to-consumer channels and leveraging platforms like TikTok for real-time consumer engagement [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming product launches and the overall health of the business, indicating a strong base for future growth [6][7] - The transition to direct distribution in new markets is expected to be smoother than previous efforts, with a focus on consumer demand driving retailer engagement [36][39] Other Important Information - The company is actively hiring software engineers to enhance product functionality, with expectations for integrated hardware-software products to emerge by the second half of 2026 [26][29] - The direct-to-consumer replatforming has already shown positive results in Canada and the U.S., with plans to expand to Europe in 2026 [32][34] Q&A Session Summary Question: How is the company managing product life cycles? - The company uses case studies like the air fryer business to illustrate its approach to product life cycle management, focusing on innovation and diversification within categories [9][10] Question: What is the strategy for pricing architecture amidst input cost challenges? - The company emphasizes affordable innovation, aiming to serve a broad consumer base without excessively premiumizing products [14][15] Question: Can you provide an update on the hiring of software engineers? - The company has hired about half of the targeted 100 software engineers, with expectations for product enhancements to be visible by late 2026 [26][29] Question: What are the expectations for the direct-to-consumer replatforming? - The replatforming has improved consumer experience and revenue, with plans for global rollout by the end of Q2 2026 [34][35] Question: How is the company transitioning to self-distribution in new markets? - The company successfully transitioned several European markets to direct distribution and is confident in a smoother process compared to previous efforts [36][37]

Core Insights - Retailers are facing rising tariff costs but have managed to avoid significant price hikes for consumers so far [2][3][5] - Consumer spending remains steady, with some retailers reporting healthy sales of discretionary items [8][11][12] - Companies are employing various strategies to mitigate the impact of tariffs, including diversifying sourcing and adjusting pricing carefully [16][20][28] Group 1: Retail Performance - Walmart and Tapestry have raised their sales outlooks for the year, indicating strong consumer demand for discretionary items [8][12] - Sales of fashion items at Walmart accelerated, with specific high-demand products selling out quickly [9][29] - Lower-income shoppers are more sensitive to price changes, affecting their purchasing behavior [11][12] Group 2: Tariff Impact and Mitigation - Retailers have absorbed some tariff costs while passing others onto consumers, but the overall impact has been less severe than anticipated [5][21][30] - Companies like Home Depot and Lowe's are focusing on home professionals to stabilize traffic amid uncertain consumer spending [25][26] - Walmart has benefited from diversified revenue streams, including a 46% growth in global advertising [26][28] Group 3: Strategic Adjustments - Retailers are importing goods from a wider range of countries and stocking up on high-frequency purchases to mitigate tariff impacts [16][20] - Some brands, like Birkenstock and Coach, have successfully increased prices without losing customer demand [29][30] - Companies are adjusting inventory strategies, with Crocs reducing orders and swapping out older inventory for fresher styles [32]

Core Insights - SharkNinja, Inc. (SN) is set to announce its second-quarter 2025 earnings results on August 7, which is critical for investors to assess their positions regarding the stock [1] Financial Performance Estimates - The Zacks Consensus Estimate for second-quarter revenues is $1,365 million, reflecting a 9.3% increase from the previous year [2] - The earnings consensus estimate is stable at 78 cents per share, indicating a 9.9% year-over-year rise [2] - SharkNinja has a trailing four-quarter earnings surprise average of 14.2%, with a 19.2% beat in the last quarter [2][7] Revenue and Earnings Projections - Current quarter revenue estimate is $1.37 billion, with next quarter at $1.61 billion, and total revenue for the current year projected at $6.24 billion [3] - Year-over-year growth estimates for revenues are 9.34% for the current quarter and 13.19% for the next quarter [3] - Current quarter EPS estimate is 0.78, with a year-over-year growth estimate of 9.86% [4] Earnings Prediction Model - The Zacks model indicates a likely earnings beat for SharkNinja, supported by a positive Earnings ESP of +8.25% and a Zacks Rank of 3 (Hold) [5][6] Growth Factors - SharkNinja's growth is attributed to innovation, pricing strategies, supply-chain optimization, and international expansion [8] - The company has launched new products across various categories, generating strong consumer engagement [8] - A strategic shift in manufacturing from China to Southeast Asia has helped mitigate tariff impacts and enhance supply-chain resilience [9] Pricing and Market Strategy - SharkNinja has successfully raised prices in the mid to premium segment without negatively impacting demand, supported by a favorable product mix and reduced promotional activity [10] International Expansion - Approximately one-third of SharkNinja's sales come from international markets, with ongoing efforts to deepen retail partnerships in Europe and Latin America [11] Stock Performance - SharkNinja's stock has increased by 57.7% over the past year, significantly outperforming the industry average of 21.4% and its peers [12] Valuation Analysis - SharkNinja's forward 12-month price-to-sales (P/S) ratio is 2.47, higher than the industry average of 1.91, indicating a premium valuation [15][16] - This premium is notable compared to peers like Whirlpool, Helen of Troy, and iRobot, which have much lower P/S ratios [16] Investment Outlook - Given its strong innovation pipeline, pricing power, and international growth, SharkNinja is positioned for solid quarterly performance, suggesting that holding shares may be a prudent strategy for investors [17]