SharkNinja's 2024 Earnings: Revenue Surge, EPS Miss

SharkNinja, Inc. (NYSE: SN), a global product design and technology company, reported its financial results for the fourth quarter and full year ended December 31, 2024, with revenues beating expectations but earnings per share (EPS) falling short. The company's strong revenue growth was driven by expansion across all product categories, while the EPS miss can be attributed to increased expenses and a higher tax rate.

Revenue Beat

SharkNinja's net sales increased by 29.7% to $1,787.2 million in the fourth quarter of 2024, compared to the fourth quarter of 2023. This growth was driven by expansion across all four product categories, with Food Preparation Appliances showing the most significant improvement. The company's robust innovation pipeline and deep consumer insights have strengthened its competitive position in this large and growing addressable market.

Cleaning Appliances net sales increased by $106.5 million, or 19.7%, to $648.0 million, driven by the carpet extractor, hard floor, and cordless vacuums sub-categories. This growth demonstrates the company's ability to gain market share in existing categories and enter new ones.

Cooking and Beverage Appliances net sales increased by $94.7 million, or 18.8%, to $597.3 million, driven by growth in Europe and the continued momentum within heated cooking. This growth highlights the company's global presence and its ability to expand its product portfolio.

Beauty and Home Environment Appliances net sales increased by $47.4 million, or 31.1%, to $199.9 million, primarily driven by strength of haircare products and air purifiers. This growth shows the company's ability to enter new categories and grow its global footprint.

EPS Miss

SharkNinja's EPS fell short of expectations due to increased expenses and a higher tax rate. The company's net income increased by 161.0% to $128.7 million, but adjusted net income increased by only 49.6% to $197.6 million. This discrepancy can be attributed to the following factors:

1. Increased Research and Development Expenses: SharkNinja's research and development expenses increased by 25.9% to $86.8 million, or 4.9% of net sales, compared to the prior year quarter. This increase was primarily driven by incremental personnel-related expenses and an increase in depreciation and amortization expense.
2. Higher Sales and Marketing Expenses: The company's sales and marketing expenses increased by 28.8% to $424.6 million, or 23.8% of net sales, compared to the fourth quarter of 2023. This increase was primarily attributable to advertising-related expenses, delivery and distribution costs, and increased volumes in the direct-to-consumer (DTC) business.
3. Higher Tax Rate: SharkNinja's effective tax rate increased to 21.5% in the fourth quarter of 2024, compared to 18.7% in the prior year quarter. This higher tax rate contributed to the EPS miss.

Outlook and Opportunities

SharkNinja's strong revenue growth and market share gains across its product categories position the company well for future growth. As the company continues to execute its proven three-pillar growth strategy, it can further expand its market share, enter new categories, and grow its global presence. By leveraging its robust innovation pipeline, strengthening its demand creation engine, and optimizing its supply chain and costing strategy, SharkNinja is well-positioned to drive sustainable, profitable growth in 2025.