02. SharkNinja, Inc. (NYSE:SN)
Number of Hedge Fund Holders: 52
SharkNinja, Inc. (NYSE:SN) is a global technology company specializing in household appliances, operating under two brands: Shark and Ninja. Shark offers products like vacuums, robot cleaners, steam mops, air purifiers, and beauty tools. Ninja focuses on kitchen appliances, including cooking and beverage machines. Founded in 1997 by Mark Rosenzweig, the company is based in Needham, MA. SharkNinja, Inc. (NYSE:SN) delivered a standout performance in Q2 2024, significantly exceeding earnings expectations with an impressive EPS of $0.71 compared to the anticipated $0.59. This strong result highlights the company’s robust financial health and strategic execution. In Q2, SharkNinja, Inc. (NYSE:SN) reported an extraordinary 38% increase in adjusted net sales, building on the 20% growth from the previous year. This growth was purely organic and highly profitable. Notably, adjusted EBITDA surged by 48%, and earnings per share climbed by 51%. These metrics reflect the company’s successful initiatives in supplier diversification, competitive bidding, and value engineering, which collectively enhanced adjusted gross margins by nearly 600 basis points and improved adjusted EBITDA margins by 90 basis points.
The company’s growth was broad-based, with all four major product categories posting double-digit increases. The cleaning category led with a 20% growth, its strongest performance since the pandemic. SharkNinja, Inc. (NYSE:SN) domestic business accelerated remarkably, achieving a 35% increase, despite a relatively flat market. Internationally, the company excelled with a 46% rise in adjusted net sales, driven by triple-digit growth in emerging markets like Germany and France. SharkNinja, Inc. (NYSE:SN) strategic expansion into new product categories contributed significantly to its success. Recent innovations such as the Ninja SLUSHi and the Shark FlexBreeze have resonated strongly with consumers. The Ninja SLUSHi, for instance, became the fastest-selling new product ever on SharkNinja’s direct-to-consumer site, showcasing the company’s effective market entry and consumer appeal.
The company’s global footprint and brand presence are expanding rapidly. SharkNinja, Inc. (NYSE:SN) international operations are particularly noteworthy, with significant growth in EMEA and promising prospects in Latin America, including upcoming launches in Brazil. With a robust pipeline of new products and strategic marketing initiatives, SharkNinja, Inc. (NYSE:SN) is well-positioned for continued growth. The company’s commitment to innovation, coupled with its solid financial performance and expansion into new markets, makes it a compelling choice for investors seeking high-growth opportunities in the consumer electronics sector.
Ave Maria World Equity Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q2 2024 investor letter:
“Top contributors to performance included SharkNinja, Inc. (NYSE:SN) and Taiwan Semiconductor Manufacturing Company Limited. SharkNinja, Inc. is a global product design and technology company focused on creating solutions that increase efficiency, convenience and enjoyment of consumers’ daily tasks and improve everyday lives. The company has built two billion-dollar brands, Shark and Ninja, and has a proven track record of establishing leadership positions by disrupting numerous household product categories, including cleaning, cooking, food preparation, home entertainment and beauty.”
