SharkNinja(SN) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Adjusted net sales increased by 38% to nearly $1.25 billion, following a 20% growth in the same period last year [4][21] - Adjusted EBITDA grew by 48% to $168 million, with adjusted EBITDA margins improving by nearly 90 basis points year-over-year [4][28] - Earnings per share rose by 51% to $0.71, compared to $0.47 in the prior year [4][27] Business Line Data and Key Metrics Changes - Cleaning category sales grew by 20% to $466 million, marking a significant recovery from a 5% decline in the previous year [10][22] - Cooking and beverage category increased by 12% to $379 million, driven by strong performance in Europe [11][22] - Food preparation category saw a remarkable 91% increase in sales to $265 million, fueled by the success of Ninja CREAMi [12][23] - Other categories, including beauty products, surged by 251% to $138 million, with strong contributions from FlexStyle hot hair stylers [13][24] Market Data and Key Metrics Changes - North American sales rose by 35% to $869 million, representing 70% of total sales [21] - International sales increased by 46% to $379 million, with notable growth in Germany and France [21][14] - The UK market grew nearly 7%, while Germany and France experienced triple-digit growth [14][52] Company Strategy and Development Direction - The company is focused on a three-pillar growth strategy: entering new categories, gaining share in existing categories, and expanding internationally [6][20] - New product launches, such as Ninja SLUSHi and Ninja Luxe Café, are aimed at addressing consumer needs and expanding market presence [6][12] - The company plans to continue investing in R&D and marketing to drive innovation and brand awareness [17][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges and emphasized the importance of consumer insights in driving innovation [17][18] - The company raised its 2024 guidance, expecting adjusted net sales to increase between 22% and 24% [31][32] - Management highlighted a $120 billion total addressable market, indicating significant growth potential [19][33] Other Important Information - The company is actively diversifying its supply chain to mitigate tariff risks and is on track to move most U.S. volume outside of China by the end of 2025 [30][31] - Inventory levels increased by 56% year-over-year, but management believes they remain healthy [28][29] Q&A Session Summary Question: Guidance and Brazil Entry - The company plans to launch in Brazil in Q4, starting with beauty and motorized kitchen appliances, while exploring local manufacturing options [36][37] Question: U.S. Market Opportunity - Management noted that the U.S. market has stabilized, with core categories performing well and new categories contributing to growth [42][43] Question: Reinvestment Strategy - The company is focusing on R&D and advertising to strengthen its market position and drive future growth [45][46] Question: International Market Growth - Management highlighted significant growth opportunities in the UK, Germany, and France, with plans for further expansion in other European markets [51][54]