Operator: Thank you. Our next question is coming from the line of Phillip Blee with William Blair. Please proceed with your question.
Phillip Blee: Hi, guys. Thanks. Can you speak about some of the outsized growth and share gains you’re seeing in some of the newer categories like beauty and outdoor? What are the key drivers there? How sustainable is that in 2024? And then, should we expect a similar kind of success in some of the new categories you have planned for this year? And then just quickly, on your ability to diversify your supply chain outside of China over the next two years, how do you think about the potential risk to quality or supply here given your existing boots on the ground approach with some of your long-time suppliers? Thanks.
Mark Barrocas: Yeah. So, first on the question of new categories, we did experience significant growth both in beauty and outdoor cooking in 2023, which came from growing within the existing retailers as well as expanding into new retailers for a lot of those products. I mean, Q4 of 2023 was the first holiday season that we were in Sephora and Ulta. We’re excited to see our beauty brands there. We ended the year with the fastest-growing hair tools company in the US. We experienced significant growth in Europe as well, but we’re still relatively low share. I mean, in the US, we ended the year at about 19% share in hot air stylers. We did run with supply constraints throughout the year on beauty as we were chasing supply. We only really launched in most of Europe at the end of last year.
Same with Latin America, we really launched just at the end of last year. So, we’ll see the full-year benefit and impact of beauty. In the outdoor space, we’ve expanded into more products. We launched an outdoor oven at the end of the year last year. We’ll obviously go into this barbeque season in Q2 with a much stronger offering than we did last year, having multiple grills and an oven. So, we’re excited about the growth potential there in outdoor as well as expanding into more doors and more retailers with our outdoor cooking products. In terms of some of the new products, we think there is a big growth opportunity for us in outdoors, going outside the home. You heard us just talk about the recent launches of our indoor/outdoor fan and also our entry into the premium cooler market, our entry into the drinkware market.
So, I think outdoor is a category for us overall that we feel like both the Shark and Ninja brands have white space to be able to expand into as we move forward. On the supply chain side, we’ve been diversifying outside of China now for the better part of the last five years. We’ve opened up a engineering and quality office actually in Ho Chi Minh City, which just happened last year. So, the quality side, we have moved offshore with a lot of existing suppliers in China that have opened up facilities in Southeast Asia. And so, our teams are on the ground with them. Their managers have moved over from China into Southeast Asia. So, focusing on quality, focusing on fast churn, focusing on competitive pricing, is all something that we’ve been working on for the last four or five years.
And you’re just seeing a scaling up of the work that we’ve done over those last few years really come into effect over the last 18 months.
Phillip Blee: Okay. Great. That’s super helpful. Thank you.
Operator: Thank you. Our next question is coming from the line of Megan Alexander with Morgan Stanley. Please proceed with your questions.
Megan Alexander: Hey. Good morning. Thanks very much. Wanted to follow-up just on the kind of retailer destocking/restocking comment. I think the gap between POS in North America and shipment I think was in the high-single-digit type range in the fourth quarter. I guess how does that compare to what you’ve been seeing prior? And how did that trend over the quarter? And are you getting to the point where the gap is at least closing and, understanding you want to be conservative in that, assume it may be reversing, but any more color you can give us there?
Mark Barrocas: So, the gap is definitely closing as we come out of Q4. POS still grew over shipments, but at a narrower gap than what we have seen in particularly Q3 and Q2 and Q1. And we would expect that as we go into 2024, the POS and shipments are going to start to normalize themselves. I don’t necessarily think or we’re not planning for shipments to outpace POS and kind of build inventories back. But I think at least we’re planning for shipments and POS to kind of match each other and look a lot more apples to apples.
Megan Alexander: Super helpful. And then maybe just a question on distribution channels, particularly with some of these new category launches, the cooler in particular. How are you thinking about or planning for new distribution entries in the US in 2024 and beyond?
Mark Barrocas: So, we’ve made investments in our sales organization over the last year, outdoor retailers, sporting goods retailer with the launch of our Ninja Thirsti product, grocery retailers. So, over the last six months we brought a lot of that staff on. They are scaling up in the business. We think that sporting goods will continue to be a bigger channel for us. I mean as you think about not just coolers and drinkware, but outdoor cooking and our types of outdoor cooking products could apply well into sporting goods. We’ve launched and been quite successful with a product called the Ninja Blast. It’s a portable cordless blender that we think the sporting goods space would be ripe for. Again, as I said, Ninja Thirsti in grocery stores we think is an opportunity.
And then continued expansion with both outdoor cooking and beauty as we go into kind of more retailers than we have been in in the past, not just in North America, but in Europe as well. So, you will see a lot of sales force expansion from us and us entering into new retailers.
Megan Alexander: Awesome. Thank you.
Operator: Thank you. Our next question is coming from the line of Brian McNamara with Canaccord. Please proceed with your questions.
Brian McNamara: Hey. Good morning, guys. Thanks for taking the question, and congrats on the strong results. We’ve gotten a lot of questions from investors on what a “normal” top-line growth year looks like after kind of flattish sales in 2022, mid-teens growth last year, and now high-single digits guide for 2024. Not expecting a formal long-term guide here, but how should investors overall think about top-line growth longer term? Thank you.
Larry Flynn: Yeah. I mean, to your point, Brian, we haven’t given that kind of long-term guide. Obviously, this is our kind of first time coming out with full-year guidance at the beginning of a year, right? So, I guess, how we probably commented on it at this point in time is 2024 we kind of put that out there and the 7% and 9% top-line probably not a bad template kind of as we look forward. But, again, nothing official from a long-term guide at this point in time.
Brian McNamara: Fair enough. Thank you.
Operator: Thank you. There are no further questions at this time. I would now like to hand the call back over to Mark Barrocas for any closing remarks.
Mark Barrocas: Great. Thanks, everyone, for joining us on our fourth quarter call, and we look forward to speaking to you again soon. Have a great day.
Operator: Thank you. That does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.
