SharkNinja, Inc. (NYSE:SN) Q1 2024 Earnings Call Transcript

Mark Barrocas: Sure, Megan. So again, let’s start by focusing on the fact that like this restocking/destocking situation is a U.S.-only phenomenon and doesn’t exist outside or hasn’t existed outside of the U.S. To help make this more clear for you, at the end of Q1 2022, retailers had 11 weeks of supply. At the end of Q1 2023, they had nine weeks of supply. And at the end of Q1 2024, they had eight weeks of supply. So, we’re — on your question on weeks of supply basis, we’re down three weeks of supply versus 2022 and we’re down one week of supply versus 2023. As we said, we ended 2023 with significantly lower weeks of supply in inventory levels than we did at the end of 2022. And so, you had some pipeline fill to replenish that back.

But even after replenishing that back, our POS in the U.S. grew 14%, 15%. Our shipments in North America grew 22%. So it’s a little kind of apples and oranges there because you got to include Canada as well in that number. But in general, we’re ending Q1 with one less weeks of supply versus last year and three weeks of supply versus two years ago. Again, we’re going to continue to guide that shipments and POS will match each other as we go out through the remaining three quarters. And we’ll just have to see whether retailers continue or willing to increase their weeks of supply relative to what we saw prior year. We’re happy to — if you have any follow-up on that.

Megan Alexander: No. That makes a lot of sense. I think that’s really helpful. So, thank you so much.

Mark Barrocas: Great.

Operator: That concludes our question-and-answer session. Mr. Mark Barrocas, I turn the call back over to you.

Mark Barrocas: Great. Well, thank you all for joining us on our first quarter call. We’re excited by the strong start to 2024 and we appreciate your engagement and continued interest in the SharkNinja story. We look forward to speaking with you again next quarter. Thanks so much.

Operator: Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.