SharkNinja, Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights:

• Strong Q4 2024 results: Net sales grew 30%, adjusted EBITDA up 32%. Full-year 2024: Adjusted net sales grew 32%, adjusted EBITDA 32%, with compounded annual growth rates of 24% in adjusted net sales and 35% in adjusted EBITDA over 2 years.
• 3-pillar growth strategy: Expanding into new/adjacent categories (e.g., coolers, fans, frozen drink appliances, skin care), increasing market share in existing categories (e.g., cleaning, cooking), and expanding international markets (international net sales grew 49% in Q4 2024, $1.7B in net sales outside NA in 2024).
• Product innovation: Plan to launch 25 new products in 2025; examples include Ninja SLUSHi (viral frozen drink maker), Shark FlexBreeze (indoor/outdoor cooling system), Shark CryoGlow (FDA-cleared skincare), Ninja FrostVault (cooler), Ninja Crispi (portable cooking system), Ninja FlexFlame (large-format outdoor cooking), Ninja Luxe Café (espresso), and Ninja CREAMi Swirl (frozen treats).

Segment Performance:

• Cleaning category: Net sales increased 20% to $648 million.
• Cooking and beverage category: Net sales increased 19% to $597 million.
• Food prep category: Net sales accelerated to 89% to $342 million, driven by CREAMi and SLUSHi.
• Beauty and home environment category: Saw 31% growth in sales, reaching $200 million, fueled by hair care, air purifiers, and CryoGlow.

Guidance:

• Full-year 2025 net sales expected to increase 10%-12%.
• Adjusted net income per diluted share range $4.80-$4.90 (12%-15% growth year-over-year).
• Adjusted EBITDA range $1.07B-$1.09B (13%-15% growth year-over-year).
• Net interest expense flat to 2024; GAAP effective tax rate ~24%-25%; CAPEX $180M-$200M for 2025.

Risks:

• Tariff uncertainties: Impact accounted for in guidance.
• Supply chain diversification challenges: Elevated costs in the first half of 2025 due to moving U.S. production out of China, but progress on reducing reliance on China.

Question and Answer: Q: What does normal growth look like for SharkNinja?

A: Long-term double-digit growth; 2025 guidance is 10%-12% net sales growth, with growth across 3 growth pillars (expanding into new/adjacent categories, increasing market share in existing categories, expanding international markets).

Q: Perspective on direct-to-consumer (D2C) business?

A: D2C grew faster than other business segments in 2024 and is expected to continue growing. SharkNinja is transitioning to Salesforce for a better shopping, research, and service experience on D2C sites while maintaining an omnichannel strategy.

Q: Details on operating expense reinvestment, Mexico impact, and Easter timing?

A: Supply chain costs will be elevated in the first half of 2025 due to diversification efforts. Mexico transition impacts revenue in the short term but is expected to drive long-term growth. Easter-related shipments shifting into Q2 creates a timing issue in Q1.

Q: Top line phasing, margin expectations, and Mexico sales size?

A: Full-year net sales growth expected to be high single-digit domestically and high teens internationally. Q1 is expected to be in the high single-digit range overall. Gross margin is expected to be lowest in Q1 and improve in subsequent quarters. Mexico has a long-term aspiration of $400M in sales.

Q: New product road map and channel expansion?

A: Plan to launch 25 new products in 2025, with rollout over 12 months. Expansion into sporting goods, beauty retailers, and grocery; examples include more SKUs in sporting goods and skin care expansion in beauty retailers.

Q: Consumer category dynamics and tariff risks?

A: Market is assumed to be flat overall, with SharkNinja focusing on growing within that. Tariff impacts are accounted for in guidance, with progress on mitigating tariffs through supply chain diversification and inventory prebuilding.