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Adjusted Net Sales Growth: 35% increase.
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Adjusted EBITDA Growth: 26% increase to $262 million.
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Adjusted Gross Margin: Increased by 160 basis points to 49.4%.
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North American Net Sales Growth: 26% year over year.
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International Net Sales Growth: 62% increase.
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Net Sales: Increased 33% to over $1.4 billion.
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GAAP Gross Profit: Increased 43% to $695 million.
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Adjusted Net Income: $170 million or $1.21 per share.
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Cash Balance: $128 million.
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Total Debt Outstanding: $965 million.
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Inventory: $1.08 billion, up 36% compared to Q3 last year.
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2024 Guidance for Adjusted Net Sales: Expected to increase between 27% and 28%.
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2024 Guidance for Adjusted Net Income per Share: Expected to be in the range of $4.13 to $4.24.
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2024 Guidance for Adjusted EBITDA: Expected to be in the range of $925 to $945 million.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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SharkNinja Inc (NYSE:SN) reported a strong third quarter with adjusted net sales growth of 35% and adjusted EBITDA growth of 26%.
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The company achieved a 160 basis point increase in adjusted gross margins to 49.4%, despite the impact of section 301 tariffs.
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International sales accelerated with a 62% increase in adjusted net sales, driven by strong performance in Europe and Latin America.
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SharkNinja Inc (NYSE:SN) successfully launched new products in four new subcategories, including coolers, fans, frozen drink makers, and skincare, exceeding their annual goal.
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The company raised its full-year 2024 guidance, expecting adjusted net sales to increase between 27% and 28% and adjusted EBITDA to grow by 29% to 31% year over year.
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The impact of section 301 tariffs negatively affected gross margins, although mitigated by other factors.
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The company anticipates inventory constraints for some hit products like Slushy, Crispy, and Cafe Lux, which may limit capturing full demand in Q4.
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SharkNinja Inc (NYSE:SN) is experiencing a temporary impact on sales in Mexico due to a transition to a direct model.
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The company is making significant investments in supply chain diversification outside of China, which may impact short-term margins.
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There is uncertainty in the macroeconomic environment, including geopolitical unrest and the upcoming U.S. elections, which could affect consumer sentiment and spending.
Q: Can you elaborate on your reinvestment priorities for the fourth quarter and early 2025, and discuss the rate of potential revenue growth and margin expansion? A: Mark Barrocas, CEO: We’ve had a strong year with significant top-line growth, and we’re investing heavily in R&D to sustain this momentum into 2025. We’re also expanding into new markets, which requires upfront investment. On the supply chain side, we’re accelerating our move outside of China to capture capacity and mitigate risks. Additionally, we’re investing in a new e-commerce platform to enhance our direct-to-consumer experience. These investments are crucial for long-term sustainable growth.