SharkNinja (SN, Financial) shares plunged almost 15% today, despite the company delivering solid third-quarter results that showcased a 33.2% surge in net sales, reaching $1.43 billion. The standout here? Food preparation appliances, which saw a staggering 73.5% increase. Net income climbed a whopping 606.8% to $132.3 million, underscoring SharkNinja's relentless pursuit of growth through aggressive product innovation and global expansion.
Even more ambitious, SharkNinja raised its full-year guidance, now forecasting up to 26% net sales growth. Adjusted EBITDA is expected to increase between 29% and 31%, a promising outlook heading into the holiday season. CEO Mark Barrocas expressed confidence in maintaining strong momentum, powered by SharkNinja's expanding product lines and growing market share, even as economic pressures loom.
Yet investors zeroed in on escalating costs, with R&D expenses spiking 56.2% to fuel new product lines and international reach. Sales and marketing also surged, up 44.9% due to intensified advertising and distribution efforts. These rising costs are likely casting a shadow over SharkNinja's profit margins, hinting at potential pressures ahead and possibly contributing to today's sharp stock decline, despite the otherwise impressive growth metrics.
