Q3 2024 Sharkninja Inc Earnings Call Transcript
Key Points
- SharkNinja Inc (SN) reported a strong third quarter with adjusted net sales growth of 35% and adjusted EBITDA growth of 26%.
- The company achieved a 160 basis point increase in adjusted gross margins to 49.4%, despite the impact of section 301 tariffs.
- International sales accelerated with a 62% increase in adjusted net sales, driven by strong performance in Europe and Latin America.
- SharkNinja Inc (SN) successfully launched new products in four new subcategories, including coolers, fans, frozen drink makers, and skincare, exceeding their annual goal.
- 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.
- The impact of section 301 tariffs negatively affected gross margins, although mitigated by other factors.
- The company anticipates inventory constraints for some hit products like Slushy, Crispy, and Cafe Lux, which may limit capturing full demand in Q4.
- SharkNinja Inc (SN) is experiencing a temporary impact on sales in Mexico due to a transition to a direct model.
- The company is making significant investments in supply chain diversification outside of China, which may impact short-term margins.
- There is uncertainty in the macroeconomic environment, including geopolitical unrest and the upcoming U.S. elections, which could affect consumer sentiment and spending.
Good morning and thank you all for attending the Sharkninja Third Quarter 2024 Earnings Conference Call. (Operator Instructions)
I would now like to pass the conference over to your host, Arvind Bhatia, Senior Vice President, Investor Relations. Thank you. You may proceed, Arvind.
Good morning and welcome to the Sharkninja third quarter 2024 earnings conference call.
Our third quarter earnings release was issued this morning and can be found on the company's website at ir.sharkninja.com. And shortly after today's call, a webcast will be available there for replay. Let me remind you that today's discussion contains forward-looking statements based on the environment as we currently see it. And as such does include risks and uncertainties.
If you refer to the earnings release and the company's most recent sec filings, you will see a discussion of factors that could cause the company's actual results to differ materially from these forward-looking statements. The
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