5. SharkNinja, Inc. (NYSE:SN)
Number of Hedge Fund Holders: 52
Talking about SharkNinja, Inc. (NYSE:SN), Cramer exclaimed, “What a stock.” It spun off from its parent company, JS Global Lifestyle Company Limited at the end of July 2023. Since its separation, the stock has gained approximately a whopping 300%.
The company is a product design and technology company known for delivering consumer solutions globally. The company provides a wide range of appliances, including cleaning, cooking, food preparation, and beauty products, as well as items designed for home environments.
The company markets its offerings through a combination of traditional retail outlets, e-commerce platforms, distributors, and direct-to-consumer channels, operating primarily under the Shark and Ninja brands.
Cramer stated that SharkNinja (NYSE:SN) executes “like you wouldn’t believe” and wished that he had bought the stock. In the first half of 2024, the company reported a remarkable 28.2% increase in net sales, reaching $2.31 billion, up from $1.8 billion during the same period the previous year.
When adjusted for certain factors, net sales saw an even more impressive rise of 32.9%, driven by significant growth across all four major product categories: Food Preparation Appliances, Cooking and Beverage Appliances, Cleaning Appliances, and Other products, which include beauty and home environment items. The company has a strong market performance as each of these categories experienced at least double-digit growth during the second quarter.
It has also made strides in expanding its market share and diversifying its product offerings. In 2024 alone, the company has ventured into three new subcategories, bringing its total to 34, an increase from 27 at the end of 2022.
A key element of the growth strategy is the company’s focus on international markets. In the second quarter, the company’s international sales surged by 46%, building on a remarkable 66% growth in the same quarter last year.
The UK remains SharkNinja’s (NYSE:SN) largest international market, reporting nearly 7% growth in the second quarter and a 10% increase in the first half of the year. Its UK operations are now characterized by greater diversification and profitability.
In Continental Europe, the company experienced impressive triple-digit growth in Germany and France, despite overall market stagnation in those regions. The company is actively expanding its presence and brand recognition in these countries and management sees substantial opportunities in markets such as the Nordics, Benelux, Poland, Italy, Spain, and the Middle East.
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.”
