Q1 2025 SharkNinja Inc Earnings Call

May 8, 2025

Operator: Your moderator for today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question during this time, please press Star then one on your telephone keypad. To remove your request, press Star then two. For operator assistance at any point, please press Star zero. Thank you. I would now like to pass the conference over to your host, James Lamb, Senior Vice President of Investor Relations and Treasury. Thank you. You may proceed, James.

So line until the muted during the presentation portion of the cool with an opportunity for questions I don't does at the end.

If you would like to ask a question. During this time. Please press Star then one on your telephone keypad.

Sure maybe request press Star then two.

And for operator assistance at any point, Please press star right. Thank you.

I'd now like to pass the conference over to your host James <unk> Senior Vice President of Investor Relations and Treasury. Thank you you May proceed.

Good morning, and welcome to Shark Ninja is first quarter 2025 earnings conference call earlier today, we issued our Q1 earnings release, which is available on the company's website at IR, Dr Shark Ninja Dot com.

James Lamb: Good morning and welcome to SharkNinja's Q1 2025 Earnings Conference Call. Earlier today, we issued our Q1 earnings release, which is available on the company's website at ir.sharkninja.com. A replay of today's webcast will also be available on the site shortly after the call. Before we begin, let me remind you that today's discussion will include forward-looking statements based on our current perspective of the business environment. These statements involve risks and uncertainties, and actual results may differ materially. For more details, please refer to our earnings release and the company's most recent SEC filings, which outline factors that could impact these statements. The company assumes no obligation to update or revise forward-looking statements in the future. Additionally, during the call, we will reference non-GAAP financial measures, which we believe provide valuable insight into the underlying growth trends of our business.

A replay of today's webcast will also be available on the site shortly after the call.

Before we begin let me remind you that today's discussion will include forward looking statements based on our current perspective of the business environment.

These statements involve risks and uncertainties and actual results may differ materially.

For more details please refer to our earnings release and the company's most recent SEC filings, which outline factors that could impact these statements.

The company assumes no obligation to update or revise forward looking statements in the future.

Additionally, during the call we will reference non-GAAP financial measures, which we believe provide valuable insight into the underlying growth trends of our business.

You can find a full reconciliation of these measures to their most directly comparable GAAP measures in the earnings release.

James Lamb: You can find a full reconciliation of these measures to their most directly comparable GAAP measures in the earnings release. Joining me today are our Chief Executive Officer, Mark Barrocas, and Chief Financial Officer, Patraic Reagan. Mark will start by providing a business update, followed by Patrick, who will review our Q1 financial results and share our outlook for 2025. Mark will then offer some closing remarks before we open the call to questions. During the Q&A session, please limit yourself to one question and one follow-up. I would now like to turn the call over to Mark.

Patrick Reagan: Joining me today are our Chief Executive Officer, Mark <unk>, and Chief Financial Officer, Patrick Reagan.

for materially. For more details, please refer to our earnings release and the company's most recent SEC filings, which outline factors that could impact these statements. The company assumes no obligation to update or revise forward-looking statements in the future.

Speaker Change: Mark will start by providing a business update followed by Patrick who will review, our Q1 financial results and share our outlook for 2025.

Patrick Reagan: Mark will then offer some closing remarks before we open the call to questions.

Patrick Reagan: During the Q&A session. Please limit yourself to one question and one follow up.

Additionally, during the call, we will reference non-GAAP financial measures which we believe provide valuable insight into the underlying growth trends of our business. You can find a full reconciliation of these measures to their most directly comparable GAAP measures in the earnings release.

Patrick Reagan: I would now like to turn the call over to Mark.

Mark: Thank you James Good morning, everyone and thank you for joining us today.

Mark Barrocas: Thank you, James. Good morning, everyone. Thank you for joining us today. This is undoubtedly a challenging time for business. I'm excited to discuss how SharkNinja has engaged and is responding to the moment. Our Q1 results demonstrate the consistent strength and adaptability of SharkNinja with our eighth consecutive quarter of healthy double-digit revenue growth. Net sales increased nearly 15% year-over-year globally in a market that is not delivering much growth, a reflection of demonstrable market share gains driven by continued demand for our five-star products that customers love. This revenue growth produced outstanding profitability with Adjusted Gross Margin of 50% and Adjusted EBITDA of $200 million in the quarter. Most importantly, Q1 has given our team an opportunity to do what we do best, rallying together and taking quick action to solve problems.

Mark: This is undoubtedly a challenging time for business and I'm excited to discuss our shark Ninja has engaged and is responding to the moment.

Speaker Change: Joining me today are our chief executive officer, Mark Barrocas, and chief financial officer, Patrik Reagan.

Mark: Our first quarter results demonstrates the consistent strength and adaptability of shark Ninja with our eighth consecutive quarter of healthy double digit revenue growth.

Speaker Change: Mark will start by providing a business update, followed by Patraic who will review our Q1 financial results and share our outlook for 2025.

Mark: Net sales increased nearly 15% year over year globally in a market that is not delivering much growth.

Speaker Change: Mark will then offer some closing remarks before we open the call to questions.

Mark: A reflection of demonstrable market share gains driven by continued demand for our five star products that customers love.

Speaker Change: During the Q&A session, please limit yourself to one question and one follow-up.

Speaker Change: I would now like to turn the call over to Mark.

Mark: This revenue growth produced outstanding profitability with adjusted gross margin of 50% and adjusted EBITDA of $200 million in the quarter.

Mark Barrocas: Thank you, James. Good morning, everyone, and thank you for joining us today.

This is undoubtedly a challenging time for business.

Mark Barrocas: and I'm excited to discuss how SharkNinja has engaged and is responding to the moment.

Most importantly, Q1 has given our team an opportunity to do what we do best routing together and taking quick action to solve problems.

Mark Barrocas: Our first quarter results demonstrate the consistent strength and adaptability of SharkNinja.

with our eighth consecutive quarter of healthy double digit revenue growth.

Mark: This isn't the first time sharpening jabs encountered really difficult obstacles in the macro environment, we've been here before.

Mark Barrocas: This isn't the first time SharkNinja has encountered really difficult obstacles in the macro environment. We've been here before. During my 17-year tenure running the day-to-day business, SharkNinja has experienced the great financial crisis, the COVID-19 pandemic, component shortages, and many other challenging periods along the way. In each case, we not only overcame adversity, but we also emerged stronger than ever by sticking to our time-tested playbook focused on customer problem-solving, innovation, and maniacal execution. I will speak about how this theme manifests in our exciting product pipeline and three pillar growth strategy a little later. I first want to address what is likely top of mind for investors, how we're rising to the challenge of tariffs. SharkNinja has been navigating tariffs for many years, going back to the original series of tariff actions in 2018 that largely targeted China.

Mark Barrocas: Net sales increased nearly 15% year-over-year globally in a market that is not delivering much growth. A reflection of demonstrable market share gains driven by continued demand for five-star products that customers love.

Mark: During my 17 year tenure running the day to day business Shark Ninja has experienced the great financial crisis. The COVID-19 pandemic component shortages and many other challenging periods along the way.

Mark Barrocas: This revenue growth produced outstanding profitability with adjusted gross margin of 50% and adjusted EBITDA of $200 million in the quarter.

Mark: In each case, we not only overcame adversity, but we also emerged stronger than ever by sticking to our time tested playbook focused on customer problem solving innovation and maniacal execution.

Mark Barrocas: Most importantly, Q1 has given our team an opportunity to do what we do best, rallying together and taking quick action to solve problems.

Mark: I will speak about how this the manifest and our exciting product pipeline and three pillar growth strategy, a little later, but I first want to address what is likely top of mind for investors, how we're rising to the challenge of Paris.

Mark Barrocas: This isn't the first time SharkNinja has encountered really difficult obstacles in the macro environment, we've been here before.

Speaker Change: During my 17-year tenure running the day-to-day business, SharkNinja has experienced the great financial crisis, the COVID-19 pandemic, component shortages, and many other challenging periods along the way.

<unk> has been navigating towers for many years going back to the original series of tariff actions in 2018 that largely targeted China.

Mark: We successfully implemented a multifaceted approach to offset these impacts in our business flourish in.

Speaker Change: In each case, we not only overcame adversity, but we also emerged stronger than ever by sticking to our time-tested playbook focused on customer problem-solving innovation and maniacal execution.

Mark Barrocas: We successfully implemented a multifaceted approach to offset these impacts and our business flourished. In fact, from 2018 through 2024, our adjusted net sales grew at a compounded annual growth rate of more than 20%, and our Adjusted Gross Margin expanded significantly to 49%. Since that time, we've been actively diversifying our manufacturing capabilities to other countries around the world, mainly across Southeast Asia. We took these steps, many of which required sizable investment and multi-year execution ahead of our competition, a group that largely remains considerably more dependent on China. Due to our proactive supplier expansion, we expect to have moved roughly 90% of our US volume outside of China by the end of Q2 and nearly all by the end of 2025.

Mark: In fact from 2018 through 2024, our adjusted net sales grew at a compounded annual growth rate of more than 20%.

Speaker Change: I will speak about how this theme manifests in our exciting product pipeline and three-pillar growth strategy a little later, but I first want to address what is likely top of mind for investors how we are rising to the challenge of Paris.

Mark: And our adjusted gross margin expanded significantly to 49%.

Mark: Since that time, we've been actively diversifying our manufacturing capabilities to other countries around the world mainly across southeast Asia.

Speaker Change: SharkNinja has been navigating tariffs for many years, going back to the original series of tariff actions in 2018 that lords retargeted China.

Mark: We took these steps many of which required sizable investment in multi year execution.

Mark: Head of our competition a group that largely remains considerably more dependent on China.

Speaker Change: We successfully implemented a multi-faceted approach to offset these impacts and our business flourish.

Mark: Due to our proactive supplier expansion, we expect to have moved roughly 90% of our U S volume outside of China by the end of the second quarter and nearly all by the end of 2025.

Speaker Change: In fact, from 2018 through 2024, our adjusted net sales grew at a compounded annual growth rate of more than 20%.

and our adjusted gross margin expanded significantly to 49 percent.

Mark: Our high quality fast churn low cost and highly diversified supply chain has taken an enormous effort to achieve and stands as a key competitive advantage for shark Ninja.

Mark Barrocas: Our high quality, fast turn, low cost, and highly diversified supply chain has taken an enormous effort to achieve and stands as a key competitive advantage for SharkNinja. The current tariff dynamic has brought considerable new challenges. Despite the evolving policies and resulting uncertainty, I'm extraordinarily proud of the actions we have already taken in a short period to continue driving our three pillar growth strategy while materially offsetting the impact of tariffs. Before I get into detail, let me start by saying we have not responded to the moment by pulling back or slowing down. It's quite the opposite. We continue to make decisions that are necessary to drive our confidence in sustainable long-term global growth and invest behind all the areas that make SharkNinja special, like product innovation, marketing, and go-to-market capabilities.

Speaker Change: Since that time, we've been actively diversifying our manufacturing capabilities to other countries around the world, mainly across Southeast Asia.

Mark: The current tariff dynamic has brought considerable new challenges, but despite the evolving policies and resulting uncertainty I'm extraordinarily proud of the actions we've already taken in a short period to continue driving our three pillar strategy, while materially offsetting the impact of tariff.

Speaker Change: We took these steps, many of which required sizable investment and multi-year execution ahead of our competition, a group that largely remains considerably more dependent on China.

Speaker Change: Due to our proactive supplier expansion, we expect to have moved roughly 90% of our US volume outside of China by the end of the second quarter and nearly all by the end of 2025.

Mark: Yes.

Mark: Before I get into detail, let me start by saying, we have not responded to the moment by pulling back or slowing down.

Speaker Change: Our high-quality, fast-turn, low-cost and highly-diversified supply chain has taken an enormous effort to achieve and stand as a key competitive advantage for Shark Ninja.

Mark: It's quite the opposite.

Mark: We continue to make decisions that are necessary to drive our confidence in sustainable long term global growth and invest behind all of the areas that makes shark Ninja special like product innovation marketing and go to market capabilities. The approach. We're taking is not focused only.

The current tyrophynomic has brought considerable new challenges.

Speaker Change: With despite the evolving policies and resulting uncertainty, I'm extraordinarily proud of the actions we have already taken in a short period to continue driving our three-pillar growth strategy while materially offsetting the impact of terrorists.

Mark Barrocas: The approach we're taking is not focused only through the lens of our domestic business, but rather globally, with over a third of our net sales forecasted to come from outside the United States this year. Our comprehensive tariff mitigation strategy has three key components: how we source, how we sell, and how we control operating costs, each of which I will describe in more detail. The first area of focus is what we internally call the buy side. Ways in which we can drive efficiencies on product costs. I wanna break this down into two key areas that we've addressed quickly, factory cost and value engineering. SharkNinja is fortunate to have deep, trusted relationships with our suppliers, many of which go back decades.

Mark: Through the lens of our domestic business, but rather globally with over a third of our net sales forecast that have come from outside the United States. This year.

Mark: Our comprehensive tariff mitigation strategy has three key components, how we source.

Speaker Change: Before I get into detail, let me start by saying we have not responded to the moment by pulling back or slowing down.

Mark: How we sell and how we control operating costs each of which I will describe in more detail.

It's quite the opposite.

Speaker Change: We continue to make decisions that are necessary to drive our confidence in sustainable long-term global growth.

Mark: The first area of focus is what we internally call the buy side.

Mark: Ways in which we can drive efficiencies on product costs.

Speaker Change: and invest behind all the areas that make SharkNinja special like product innovation, marketing, and go to market capabilities.

Mark: I want to break this down into two key areas that we've addressed quickly.

Mark: Factory cost and value engineering.

Speaker Change: The approach we're taking is not focused only through the lens of our domestic business, but rather globally, with over a third of our net sales forecasted to come from outside the United States this year.

Mark: <unk> is fortunate to have deep trusted relationships with our suppliers many of which go back decades.

Mark: In a short time, we mobilized our global supply team to secure cost Downs and our factory partners are engaging actively with the majority of our largest tier one and tier two suppliers granting concessions.

Our comprehensive tariff mitigation strategy has three key components.

Mark Barrocas: In a short time, we mobilized our global supply teams to secure cost downs, and our factory partners are engaging actively with the majority of our largest tier one and tier two suppliers granting concessions. Additionally, we're leveraging our diversified global supply chain and expanding dual source capabilities to shift production to partners with the lowest cost offers. This flexibility enables us to substitute high tariff items in China with products from Vietnam, Indonesia, Cambodia, Thailand, and Malaysia. Value engineering is a core competency that optimizes function and value with the pursuit of reduced manufacturing costs, all while maintaining the quality and reliability that customers expect from SharkNinja.

Speaker Change: How we source, how we sell, and how we control operating costs, each of which I will describe in more detail.

Mark: Additionally, we're leveraging our diversified global supply chain and expanding dual source capabilities to shift production to partners with the lowest cost offers.

Speaker Change: The first area focus is what we internally call the by side.

Ways in which we can drive efficiencies on product costs.

Speaker Change: I want to break this down into two key areas that we've addressed quickly, factory cost and value engineering.

Mark: This flexibility enables us to substitute high tariff items in China with products from Vietnam, Indonesia, Cambodia, Thailand and Malaysia.

Speaker Change: SharkNinja is fortunate to have deep trusted relationships with our suppliers, many of which go back decades.

Mark: Value engineering is a core competency that optimizes function and value with the pursuit of reduced manufacturing costs, all while maintaining the quality and reliability our customers expect from shark Ninja.

Speaker Change: In a short time, we mobilized our global supply teams to secure cost downs, and our factory partners are engaging actively with the majority of our largest tier one and tier two suppliers grant the concessions.

Mark: In the first week after reciprocal tariffs were announced we engaged in a large scale value engineering effort to identify over 1500 cost savings opportunities changes.

Speaker Change: Additionally, we're leveraging our diversified global supply chain and expanding dual source capabilities to shift production to partners with the lowest cost offers.

Mark Barrocas: In the first week after reciprocal tariffs were announced, we engaged in a large-scale value engineering effort to identify over 1,500 cost savings opportunities, changes to configurations, features, packaging, and finishes, all of which will help lower product costs while continuing to delight consumers. Let's move to the sell side, where there are four areas of focus: pricing, promotions, retailer programs, and assortment management and mix. From a pricing perspective, we sell in the mid to upper tier of the market, and we don't participate in the opening price segments. Our promise to the consumer is to deliver products that are highly innovative, with market-leading performance and exceptional quality at a great value. We can maintain this value proposition to consumers as we strategically identify areas where we can drive increased average sell price for our products, not just in the United States, but globally.

Mark: Changes to configurations features packaging finishes all of which will help lower product costs, while continuing to delight consumers.

Speaker Change: This flexibility enables us to substitute high-tariff items in China with products from Vietnam, Indonesia, Cambodia, Thailand and Malaysia.

Mark: Let's move to the sell side, where there were four areas of focus pricing promotions retailer programs and assortment management and mix.

Speaker Change: Value engineering is a core competency that optimizes function and value with the pursuit of reduced manufacturing costs, or while maintaining the quality of reliability that customers expect

Mark: From a pricing perspective, we sell in the mid to upper tier of the market and we don't participate in the opening price segments.

Speaker Change: In the first week after reciprocal tariffs were announced, we engaged in a large scale value engineering effort to identify over 1500 cost savings opportunities.

Mark: Our promise to the consumer is to deliver products that are highly innovative with market, leading performance and exceptional quality at a great value.

Mark: We can maintain this value proposition to consumers as we strategically identify areas, where we can drive increased average sell price for our products not just in the United States, but globally.

Speaker Change: Changes to Configurations, Features, Packaging, Finishes, all of which will help lower product costs while continuing to the light consumers.

Speaker Change: Let's move to the cell side where there were four areas of focus.

Mark: We're already selectively increasing prices for several of our key products and we'll continue to look for additional opportunities.

Mark Barrocas: We're already selectively increasing prices for several of our key products and will continue to look for additional opportunities. Our Ninja Luxe Café premium espresso product exemplifies this strategy. As we recently raised the price on this product from $499 to $549 with no degradation in demand. It is in fact now become the number one selling espresso maker SKU in the US market just 6 months after launch. Marketing and advertising plays a major role in our pricing power. We continue to invest in demand generation to drive awareness for our 5-star products, many of which become viral hits fueled by user-generated content. The power of this organic demand allows us to charge a premium for these kinds of products without impacting overall sales trends. We're executing on this advantage.

Pricing, Promotions, Retailer Programs, and Assortment Management and Mix

Mark: Our NIM to Lux Cafe premium espresso product exemplifies this strategy as we recently raised the price on this product from 49 nine to 549 with no degradation in demand.

Speaker Change: From a pricing perspective, we sell in the mid to upper tier of the market, and we don't participate in the opening price segment.

Speaker Change: Our promise to the consumer is to deliver products that are highly innovative with market leading performance and exceptional quality at a great value.

Mark: It is in fact now become the number one selling espresso maker SKU in the U S market just six months after launch.

Speaker Change: We can maintain this value proposition to consumers as we strategically identify areas where we can drive increased average sell price for our products, not just in the United States but globally.

Mark: Marketing and advertising plays a major role in our pricing power.

Mark: We continue to invest in demand generation to drive awareness for our five star products, many of which become viral hits fueled by user generated content.

Speaker Change: We are already selectively increasing prices for several of our key products and will continue to look for additional opportunities.

Mark: The power of this organic demand allows us to charge a premium for these kinds of products without impacting overall sales trends and we're executing on this advantage.

Speaker Change: Our Ninja Lux Cafe premium espresso product exemplifies this strategy, as we recently raised the price on this product from $4.99 to $5.49 with no degradation in demand.

Mark: As we continue to invest here, we have also been able to lower the degree of promotional activity. We've already started optimizing our promotional calendar and while we still want to participate in key selling periods. We believe we can do so with a limited product assortment and at lower discount.

Mark Barrocas: As we continue to invest here, we have also been able to lower the degree of promotional activity. We've already started optimizing our promotional calendar, while we still want to participate in key selling periods, we believe we can do so with a limited product assortment and at lower discount levels. This concept extends further to how we work creatively with retailers to address program elements. We've taken steps to reduce certain retailer programs and fixed expenses like end cap placement, instead collaborate on revenue-generating co-investments that become a true win-win. Our long-standing relationships with our retail partners, together with a strong pipeline of products, allows us to quickly execute these changes. Finally, let's touch on assortment management and mix. We're working closely with our retail partners to optimize our product assortment by eliminating low-margin products and replacing them with higher margin versions.

Speaker Change: It is in fact now become the number one selling espresso maker skew in the US market just six months after launch.

Speaker Change: Marketing and advertising plays a major role in our pricing power. We continue to invest in demand generation to drive awareness for our five-star products, many of which become viral hits fueled by user-generated content.

Mark: Level.

Mark: This concept extends further to how we work creatively with retailers to address program elements.

Mark: We've taken steps to reduce certain retailer programs and fixed expenses like encap placement and instead collaborate on revenue generating co investments that become a true win win.

Speaker Change: The power of this organic demand allows us to charge a premium for these kind of products without impacting overall sales trends and we're executing on this advantage.

Mark: Our long standing relationships with our retail partners together with a strong pipeline of products allows us to quickly execute these changes.

Speaker Change: As we continue to invest here, we have also been able to lower the degree of promotional activity. We've already started optimizing our promotional calendar, and while we still want to participate in key selling periods, we believe we can do so with a limited product assortment and at lower discount levels.

Mark: Finally.

Mark: Let's touch on assortment management and mix.

Mark: We're working closely with our retail partners to optimize our product assortment by eliminating low margin products and replacing them with higher margin versions the.

Speaker Change: This concept extends further to how we work creatively with retailers to address program elements.

Mark: The inventory prebuilt, we've been executing in anticipation of tariffs is allowing us to quickly move on the substitution with our retail partners.

Mark Barrocas: The inventory pre-build we've been executing in anticipation of tariffs is allowing us to quickly move on these substitutions with our retail partners. On the mix side, we're looking at gross margins and pricing of our new products to maximize both at launch. As an example, we originally intended to price Cryo-Glo in the US at $299, but launched it at $349 based on the strength of the product distinction and the consumer appetite, and the reception has been phenomenal. FlexFlame is a similar story. The retail price of $999 in the US is the highest in our overall product lineup. Mix also relates to how we're thinking about geographic expansion. Products that were originally gonna launch first in the US this year are now going to initially launch in other markets.

Speaker Change: We've taken steps to reduce certain retailer programs and fixed expenses like NCAP Placement.

Speaker Change: and instead collaborate on revenue-generating co-investments that become a true win-win.

Mark: On the mix side, we're looking at gross margins and pricing of our new products to maximize both at launch.

Speaker Change: Our long-standing relationships with our retail partners, together with a strong pipeline of products allows us to quickly execute these changes.

Mark: As an example, we originally intended to price cryo glow in the U S at $2 99.

Mark: But launched it at $3 49 based on the strength of the product distinction and the consumer appetite.

Finally, let's touch on assortment management in next.

Speaker Change: We're working closely with our retail partners to optimize our product disortment by eliminating low-margin products and replacing them with higher-margin versions.

Mark: And the reception has been phenomenal.

Mark: <unk> is a similar story and.

Mark: And the retail price of $9 99 in the U S is the highest in our overall product lineup.

Speaker Change: The inventory pre-build we've been executing in anticipation of terrorists is allowing us to quickly move on these substitutions with our retail partners

Mark: Mix also relates to how we're thinking about geographic expansion.

Mark: <unk> that were originally going to launch first in the U S. This year are now going to initially launch in other markets are.

Speaker Change: On the mixed side, we're looking at gross margins and pricing of our new products to maximize both at launch.

Mark: Our global footprint enables this optionality as we continue to utilize some of the capacity from U S production for international markets like with Tam and EMEA.

Mark Barrocas: Our global footprint enables this optionality as we continue to utilize some of the capacity from US production for international markets like LATAM and EMEA. There's a high demand globally for products like Espresso, Slushi, CryoGlow, Creami, robots, hair care, and many more as we're taking a portfolio management approach to direct volumes to the right markets. The third area we're looking at closely is how we can strategically manage operating expenses. While the overall orientation of SharkNinja definitely remains towards growth, we're scrutinizing certain places where our spending can be streamlined and optimized. We're focusing efficiency efforts on our largest OpEx categories, including headcount additions and certain media spending, while maintaining an aggressive growth strategy. In parallel, our commercial and operations groups are driving additional cost savings. Critically, we don't expect these cost reductions will limit investment in our key differentiators: R&D and product innovation.

Speaker Change: As an example, we originally intended to price cryoglow in the US at $2.99, but launched at $3.49 based on the strength of a product distinction and the consumer appetite and the reception has been phenomenal.

Mark: There is a high demand globally for products like espresso slushy, cryo glow creamy robots hair care and many more.

Speaker Change: Swex Lane is a similar story, and the retail price of $9.99 in the U.S. is the highest in our overall product lineup.

Mark: As we're taking a portfolio management approach to direct volumes to the right markets.

Mark: The third area. We're looking at closely is how we can strategically manage operating expenses.

Nick also relates to how we're thinking about geographic expansion.

Speaker Change: Products that were originally going to launch first in the US this year are now going to initially launch in other markets.

Mark: While the overall orientation of shark Ninja definitely remains towards growth, we're scrutinizing certain places, where our spending can be streamlined and optimized.

Speaker Change: Our global footprint enables this optionality as we continue to utilize some of the capacity from U.S. production for international markets like with Tam and Amia.

Mark: We're focusing efficiency efforts on our largest opex categories, including head count additions and certain media spending while maintaining an aggressive growth strategy.

Speaker Change: There's a high demand globally for products like espresso, slushy, cryoglow, creamy, robots, care care, and many more, as we're taking a portfolio management approach to direct values to the right market.

Mark: In parallel our commercial and operations groups are driving additional cost savings.

Mark: Critically we don't expect these cost reductions will limit investment in our key differentiators R&D and product innovation.

Speaker Change: The third area we're looking at closely is how we can strategically manage operating expenses.

Mark: With a healthy balance of investment for growth and overall cost discipline, we expect to see leverage on operating expenses as a percentage of net sales for the full year.

Mark Barrocas: With a healthy balance of investment for growth and overall cost discipline, we expect to see leverage on operating expenses as a percentage of net sales for the full year. Let's bring it all together with an update on where we stand. When we last spoke in February, we had already leveraged this proven three-prong approach to fully absorb the incremental 10% tariff increase on China at that time. Since then, even as the scope of global tariffs has expanded significantly, our teams have gone above and beyond, working around the clock to identify, quantify, and implement powerful offsetting measures. We've upped our efforts significantly across buy side optimization, sell side optimization, and operating expense management to be in a confident position to lead through this dynamic and evolving tariff landscape.

Speaker Change: While the overall orientation of SharkNinja definitely remains towards growth, where scrutinizing certain places where our spending can be streamlined and optimized.

Mark: So let's bring it all together with an update on where we stand when.

Speaker Change: We're focusing efficiency efforts on our largest op-x categories, including head count additions and certain media spending, while maintaining an aggressive growth strategy.

Mark: When we last spoke in February we had already leverage this proven three pronged approach to fully absorb the incremental 10% tariff increase on China at that time.

Speaker Change: In parallel, our commercial and operations groups are driving additional cost savings.

Mark: Since then even if the scope of global tariff has expanded significantly our teams have gone above and beyond working around the clock to identify quantify and implement powerful offsetting measures.

Speaker Change: Critically, we don't expect these cost reductions, we'll limit investment in our key differentiators, R&D and product innovation.

Speaker Change: with a healthy balance of investment for growth and overall cost discipline.

Mark: We've upped our efforts significantly across buy side optimization cell site optimization and operating expense management to be in a confident position to lead through this dynamic and evolving tariff landscape.

Speaker Change: and we expect to see leverage on operating expenses as a percentage of net sales for the four-year.

Speaker Change: So let's bring it all together with an update on where we stand.

Mark: Our updated 2025 guidance, where we're raising numbers across the board reflects this confidence as we remain nimble and drive our strategy forward to win.

Speaker Change: When we last spoke in February , we had already leveraged this proven three-prong approach to fully absorb the incremental 10% tariffs increase on China at that time.

Mark Barrocas: Our updated 2025 guidance, where we're raising numbers across the board, reflects this confidence as we remain nimble and drive our strategy forward to win. Now, let me turn back to Q1 and our three pillar growth strategy, starting with our first pillar, expanding into new and adjacent categories. SharkNinja now participates in 37 subcategories with a commitment to enter at least two more per year as we further expand within and around the home. In 2024, we overachieved by launching into four new subcategories that are generating a lot of engagement: frozen drink appliances, skincare, coolers, and fans. We're thrilled to see how this innovation is resonating with customers and our retail partners. In the Ninja business, our Slushi frozen drink maker is a smash hit with incredible engagement on social media, including over 1 billion impressions globally as consumers share recipes, photos, and more.

Speaker Change: Since then, even as the scope of global tariffs has expanded significantly, our teams have gone above and beyond working around the clock to identify, quantify and implement powerful off-setting measures.

Mark: Now, let me turn back to Q1, and our three pillar growth strategy, starting with our first pillar expanding into new and adjacent categories.

Mark: <unk> engine now participates in 37 subcategories with a commitment to enter at least two more per year as we further expand within and around the home.

Speaker Change: We've upped our efforts significantly across bi-side optimization, cell-side optimization, and operating expense management to be in a confident position to lead through this dynamic

Mark: In 2024, we overachieve by launching into four new subcategories that are generating a lot of engagement.

Speaker Change: Our updated 2025 guidance, where we're raising numbers across the board, reflects this confidence as we remain nimble and drive our strategy forward to win.

Mark: Frozen drink appliances, skincare coolers and fans.

Mark: We're thrilled to see how this innovation is resonating with customers and our retail partners in.

Mark: In the Ninja business, our slushy frozen drink maker is a smash hit.

Speaker Change: Now let me turn back to Q1 and our three-pillar growth strategy.

Mark: With incredible engagement on social media, including over 1 billion impressions globally as.

Speaker Change: Starting with our first pillar, expanding into new and adjacent categories [inaudible]

Speaker Change: SharkNinja now participates in 37 subcategories, where the commitment to enter at least two more per year as we further expand within and around the home.

Mark: As consumers share recipes photos and more.

Mark: On the short side Cryo Glo is revolutionizing the at home experience for Med Spa quality skincare.

Mark Barrocas: On the Shark side, CryoGlow is revolutionizing the at-home experience for MedSpa quality skincare. After the runaway success of our launches in the UK and Mexico, we debuted the product in the US at the beginning of 2025. People are raving. Feedback from influencers, celebrities, and adult consumers of all ages and demographics have highlighted the numerous benefits that CryoGlow can provide across acne, fine lines, and other skin wellness use cases. As I touched on earlier, when discussing demand generation, social media plays a vital role in creating buzz and driving demand, especially for new product introductions. This quarter, our innovative new Shark TurboBlade fan has become a viral sensation on TikTok and other platforms with nearly 100 million impressions already.

Mark: After the runaway success of our launches in the U K and Mexico, We debuted the product in the U S. At the beginning of 2025 and people are raising.

Speaker Change: In 2024, we overachieved by launching into four new subcategories that are generating a lot of engagement.

Frozen Drink Appliances, Skincare, Coolers and Fans [inaudible]

Mark: Feedback from Influencers celebrities and adult consumers of all ages and demographics has highlighted the numerous benefits that <unk> can provide across acne fine lines and other skin wellness use cases.

Speaker Change: We're thrilled to see how this innovation is resonating with customers and our retail partners.

Speaker Change: In the ninja business, our slushy frozen drink maker is a smash hit with incredible engagement on social media, including over 1 billion impressions globally, as consumers share recipes, photos, and more.

Mark: As I touched on earlier when discussing demand generation social media plays a vital role in creating buzz and driving demand, especially for new product introductions.

Speaker Change: On the shark side, Clio Glow is revolutionizing the at-home experience for MedSpot quality skincare.

Mark: This quarter, our innovative new sharp turbo blade fan has become a viral sensation on tick tock and other platforms with nearly 100 million impressions already.

Speaker Change: After the runaway success of our launches in the UK and Mexico, we debuted the product in the US at the beginning of 2025 and people are raising.

Mark: Countless unboxing videos and other content showcased the ease of setup eyecatching aesthetic and incredible versatility of this one of a kind bladeless multi directional fam.

Speaker Change: Feedback from influencers, celebrities, and adult consumers of all ages and demographics has highlighted the numerous benefits that cryoglow can provide across acne, fine lines and other skin wellness use cases.

Mark Barrocas: Countless unboxing videos and other content showcase the ease of setup, eye-catching aesthetic, and incredible versatility of this one-of-a-kind bladeless multidirectional fan. This groundswell of consumer excitement is delivering very strong sales momentum for TurboBlade as well. Outside of the home, our Ninja FrostVault and Shark FlexBreeze product lines are getting more placement, including at several prominent outdoor retailers as we look forward to the summer season. In Q1, we rolled out exciting new product extensions on both products, including several styles of wheeled coolers, multiple size options, and different colors for FrostVault. Within our FlexBreeze family, the launches of HydroGo and Pro Mist offer incredible versatility for almost any occasion, with misting capabilities and easy portability for indoor and outdoor use. As SharkNinja continues to reimagine what's possible with outdoor products, our new Ninja Flex Flame propane grill stands out as truly revolutionary.

Mark: This groundswell of consumer excitement is delivering very strong sales momentum for turbo blade as well.

Speaker Change: As I touched on earlier, when discussing demand generation, social media plays a vital role in creating buzz and driving demand, especially for new product introductions.

Mark: Outside of the home are Ninja Frost fault and sharp flex breeze product lines are getting more placement.

Mark: Including at several prominent outdoor retailers as we look forward to the summer season.

Speaker Change: This quarter, our innovative new Shark Turbo Blade fan has become a viral sensation on TikTok and other platforms with nearly 100 million impressions already.

Mark: In Q1, we rolled out exciting new product extensions on both products, including several styles of wheeled coolers multiple size options and different colors for Frost fault.

Speaker Change: Countless unboxing videos and other content showcase the ease of setup, eye catching aesthetic and incredible versatility of this one-of-a-kind, bladeless, multi-directional fan.

Mark: Within our flex Breeze family launches of hydro <unk> and promised offer incredible versatility for almost any occasion with missing capabilities and easy portability for indoor and outdoor use.

Speaker Change: This ground swell of consumer excitement is delivering very strong sales momentum for turbo

Mark: As shortening just continues to re imagine what's possible with outdoor products, our new Ninja Flex flame propane grill stands out as truly revolutionary.

Speaker Change: Outside of the home, our Ninja Frost Vault and Shark Flex Breeze product lines are getting more placement

Speaker Change: including its several prominent outdoor retailers as we look forward to this summer season.

Mark: This innovation is the brand's first propane system that offers the cooking features of a grill a smoker, our pizza oven, a roaster and a griddle all under one hood.

Mark Barrocas: This innovation is the brand's first propane system that offers the cooking features of a grill, a smoker, a pizza oven, a roaster, and a griddle all under one hood. In a category where there's generally very limited newness, we believe FlexFlame is the most disruptive product in years. We can't wait to see what we're able to accomplish in this $5 billion-plus global market as we're off to a fast start. The product debuted in North America in Q1 with Ninja brand ambassador David Beckham. Consumers are reacting with great fanfare. Across our two brands, we have several exciting new product launches planned for the second half of 2025 and no intention whatsoever of slowing down our unstoppable innovation engine. Let's turn to our second growth pillar, growing share in existing categories.

Speaker Change: In Q1, we rolled out exciting new product extensions on both products, including several styles of wheeled coolers, multiple size options, and different colors for Frostball.

Mark: In a category, where there is generally very limited newness, we believe flex flame is the most disruptive product in years.

Speaker Change: Within our Flex Breeze family, the launches of Hydro Go and Promise offer incredible versatility for almost any occasion with misting capabilities and easy portability for indoor and outdoor use.

Mark: We can't wait to see what we're able to accomplish in this $5 billion plus global market as we're off to a fast start.

Mark: The product debuted in North America in Q1, with Ninja brand Ambassador, David Beckham and consumers are reacting with great fanfare.

Speaker Change: As SharkNinja continues to reimagine what's possible, with outdoor products, our new Ninja Flex Flame Propane Grill stands out as truly revolutionary.

Mark: Cross our two brands, we have several exciting new product launches planned for the second half of 2025 and no intention whatsoever of slowing down our unstoppable innovation engine.

Speaker Change: This innovation is the brand's first propane system that offers the cooking features of a grill, a smoker, a pizza oven, a roaster, and a grittle, all under one hood.

Mark: Let's turn to our second growth pillar growing share in existing categories. We.

Speaker Change: In a category where there's generally very limited newness, we believe Flexlane is the most disruptive product in years.

Mark: We attack this initiative in two primary ways, adding.

Mark Barrocas: We attack this initiative in two primary ways: adding brand-new SKUs into a category where we already have a strong position and bringing innovation to a legacy platform that solves customer problems in a new and differentiated way. A good example is ice cream, where Ninja Swirl by Creami is redefining a category that we currently already lead. Many of you know that the Creami ice cream system has been a runaway success, but that didn't stop us from listening to customers about how we could improve even further. This feedback led to Swirl by Creami, which adds soft serve capability in a fun and versatile way. It's important to underscore just how much of a wow factor this carries, both for consumers and for SharkNinja.

Mark: Adding brand new skus into a category, where we already have a strong position and bringing innovation to our legacy platform that solves customer problems in a new and differentiated way.

Speaker Change: We can't wait to see what we're able to accomplish in this five billion dollar plus global market as we're off to a fast start.

Speaker Change: The product debuted in North America in Q1, with Ninja brand ambassador David Beckham.

Speaker Change: A good example of ice cream.

Speaker Change: We're an interest swirl by creamy is redefining a category that we currently already lead.

Speaker Change: and consumers are reacting with great fanfare. Across our two brands, we have several exciting new product launches planned for the second half of 2025 and no intention whatsoever a slowing down or unstoppable innovation engine.

Speaker Change: Many of you know that the creamy ice cream system has been a runaway success, but that didn't stop us from listening to customers about how we could improve even further.

Speaker Change: This feedback led to swirl by creamy which adds soft serve capability in a fun and versatile way.

Speaker Change: Let's turn to our second growth pillar, growing shared existing categories.

We attack this initiative in two primary ways.

Speaker Change: It is important to underscore just how much of a wow factor this carries both for consumers and for shark Ninja.

Speaker Change: Adding brand new skews into a category where we already have a strong position and bringing innovation to a legacy platform that solves customer problems in a new and differentiated way.

Not only has demand been outstanding from brand new customers, we're actually seeing scores of existing creamy owners interested in upgrading to swirl because the feature set is so compelling and differentiated.

Mark Barrocas: Not only has demand been outstanding from brand-new customers, we're actually seeing scores of existing Creami owners interested in upgrading to Swirl because the feature set is so compelling and differentiated. Internally, Swirl is a testament to how we're rarely satisfied, even with mega hits, because we always challenge ourselves to rapidly achieve the next breakthrough before anyone else does. Consistently delivering on this promise within our existing product lines is something SharkNinja excels at, with several other highlights to call out this quarter. Shark cordless vacuums are a staple of our cleaning business and performed strongly in Q1, driven by our proprietary PowerDetect technology that senses debris, floor types, and other elements to maximize cleaning efficiency. Finally, I'd like to spotlight Ninja Crispi, our portable air fryer product that lets consumers prep, cook, serve, store, and re-crisp all in one system.

A good example of ice cream.

Speaker Change: where Ninja Swirl by creamy is redefining a category that we currently already lead.

Speaker Change: Internally swirl was a testament to how we're rarely satisfied even with Mega hits, because we always challenge ourselves to rapidly achieve the next breakthrough before anyone else does.

Speaker Change: Many of you know that the creamy ice cream system has been a runaway success, but that didn't stop us from listening to customers about how we could improve even further.

Speaker Change: This feedback led to swirl by creamy, which had soft-served capability in a fun and versatile way.

Speaker Change: Consistently delivering on this promise within our existing product lines is something shark Ninja excels at with several other highlights to call out this quarter.

Speaker Change: It's important on the score just how much of a wow factor this carries, both for consumers and for SharkNinja.

Speaker Change: Sure Cordless vacuums, our April of our cleaning business and performed strongly in Q1, driven by our proprietary power detect technology that census, debris fluor types and other elements to maximize cleaning efficiency.

Speaker Change: Not only has demand been outstanding from brand new customers, we're actually seeing scores of existing creamy owners interested in upgrading to swirl because the feature set is so compelling and differentiated.

Speaker Change: Finally, I'd like to spotlight Ninja Christy our portable air Fryer product that lets consumers prep Cook serve store and re crisp all in one system.

Speaker Change: Internally, Swirl was a testament to how we're rarely satisfied, even with mega hits because we always challenge ourselves to rapidly achieve the next breakthrough before anyone else does.

Speaker Change: With our exclusive tempered glass containers consumers can enjoy all the benefits of cooking and storing with glass. In addition to the huge convenience unlock that are portable air frying system enables.

Mark Barrocas: With our exclusive TempWare glass containers, consumers can enjoy all the benefits of cooking and storing with glass in addition to the huge convenience unlock that our portable air frying system enables. Within the US and EMEA air fryer markets, where Ninja already owns the number one brand position, Crispi saw another strong quarter of growth as evidence on how ingenuity born from our relentless focus on consumer needs is rewarded in the market by consumers and retailers alike. Groundbreaking products like Swirl or Crispi might represent another company's entire innovation calendar for a given year, but at SharkNinja, they're examples of the kinds of disruptive innovation we aim for across our whole portfolio of categories. Our third growth pillar focuses on international growth, where we have consistently found success due to the global appeal of our products.

Speaker Change: Consistently delivering on this promise within our existing product lines is something SharkNinja excels at with several other highlights to call out this quarter.

Speaker Change: Shark cordless vacuums are a staple of our cleaning business and perform strongly in Q1, driven by our proprietary power detect technology that senses debris, fluorotypes, and other elements to maximize cleaning efficiency.

Speaker Change: Within the U S and EMEA Air Fryer markets, where ninja already owns the number one brand position crispy saw another strong quarter of growth as evidenced on how ingenuity born from our relentless focus on consumer needs is rewarded in the market by consumers and retailers alike.

Speaker Change: Finally, I'd like to spotlight ninja crispy, a portable air fryer product that lets consumers prep, cook, serve, store, and recryst all in one system.

Speaker Change: Groundbreaking products like swirl or crispy might represent another company's entire innovation calendar for a given year, but it's shark Ninja. There are examples of the kinds of disruptive innovation, we aim for across our whole portfolio of categories.

Speaker Change: With our exclusive tempwear glass containers, consumers can enjoy all the benefits of cooking and storing with glass in addition to the huge convenience unlock that our portable air-frying system enables.

Speaker Change: Our third growth pillar focuses on international growth, where we've consistently found success due to the global appeal of our products.

Speaker Change: Within the US and India, airfriar markets where Ninja already owns the number one brand position,

Speaker Change: Our international business has grown considerably over the past several years and is now approaching a third of total net sales as we continued to build vibrant global brands that stand for innovation and quality.

Mark Barrocas: Our international business has grown considerably over the past several years and is now approaching a third of total net sales as we continue to build vibrant global brands that stand for innovation and quality. International remains a huge growth opportunity for SharkNinja and grew a robust 14% year-over-year in the quarter. There are two items we have previously called out that impacted this quarter. The first is in our UK business, where the shift of Easter-related shipments into Q2 created a Q1 timing issue. Also, I intentionally prioritize North American demand for key launches like Crispi, Slushi, and LuxeCafe in Q4 2024 and Q1 2025. As we turn into Q2, we expect these new product launches will accelerate growth, reinforcing our position of strength in the UK market.

Speaker Change: Chris B. saw another strong quarter of growth as evidence on how ingenuity born from our relentless focus on consumer needs is rewarded in the market by consumers and retailers alike.

Speaker Change: International remains a huge growth opportunity for shark Ninja and grew a robust 14% year over year in the quarter, but there are two items, we've previously called out that impacted this quarter.

Speaker Change: Groundbreaking products like swirl or crispy might represent another company's entire innovation calendar for a given year. But at SharkNinja, there are examples of the kinds of disruptive innovation we aim for across our whole portfolio of categories.

Speaker Change: The first is in our UK business, where the shift of Easter related shipments into Q2 created a Q1 timing issue.

Speaker Change: Our third growth pillar focuses on international growth, where we have consistently found success due to the global appeal of our products.

Speaker Change: Also we intentionally prioritize north American demand for key launches like crispy slushy in Lux Cafe in Q4, 2024, and Q1 of 2025.

Speaker Change: Our international business has grown considerably over the past several years and is now approaching a third of total net sales as we continue to build vibrant global brands that stand for innovation and quality.

Speaker Change: As we turn into Q2, we expect these new product launches will accelerate growth.

Speaker Change: We enforced our position of strength in the UK market.

Speaker Change: International remains a huge growth opportunity for SharkNinja and grew a robust 14% year over year in the quarter, but there are two items we have previously called out that impacted this quarter.

Speaker Change: Second we mentioned in February that the transition of our Mexico business from a distributor model to a direct market triggers a onetime revenue reversal as we repurchased distributor inventory.

Mark Barrocas: Second, we mentioned in February that the transition of our Mexico business from a distributor model to a direct market triggers a one-time revenue reversal as we repurchase distributor inventory. This impact landed almost entirely in Q1, so we expect the Mexico business to grow once again for the remainder of the year. Elsewhere in Latin America, we're growing meaningfully in markets like Chile, Colombia, and Central America. Strong and growing relationships with retail partners are just as critical to our international success as they are within the domestic business. In Europe specifically, I'm pleased to say we have recently completed new agreements with most of our major partners to gain considerable additional shelf space ahead of holiday 2025. Consumers are clamoring for our products. Retailers are committing to us in a bigger way, and we're very enthusiastic about the potential we see all around the globe.

Speaker Change: The first is in our UK business where the shift of Easter-related shipments into Q2 created a Q1 timing issue.

Speaker Change: This impact Lamb that almost entirely in Q1, so we expect the Mexico business to grow once again for the remainder of the year.

Speaker Change: Also, we intentionally prioritize North America demand for key launches, like crispy, slushy and half-cafe in Q4 2024 and Q1 of 2025.

Speaker Change: Elsewhere in Latin America, we're growing meaningfully in markets like Chile, Colombia and Central America.

Speaker Change: Strong and growing relationships with retail partners are just as critical to our international success as they are within the domestic business in.

Speaker Change: As we turn into Q2, we expect these new product launches will accelerate growth, reinforcing our position of strength in the UK market.

Speaker Change: In Europe, specifically I'm pleased to say, we have recently completed new agreements with most of our major partners to gain considerable additional shelf space ahead of holiday 2025.

Speaker Change: Second, we mentioned in February that the transition of our Mexico business from a distributor model to a direct market triggers a one-time revenue reversal as we repurchase distributor

Speaker Change: Consumers are clamoring for our products retailers are committing to us in a bigger way and we're very enthusiastic about the potential we see all around the globe.

Speaker Change: This impact landed almost entirely in Q1, so we expect the Mexico business to grow once again for the remainder of the year.

Speaker Change: The breadth of our three pillar growth strategy equipped shark ninja with multiple ways to drive towards durable success.

Speaker Change: Elsewhere in Latin America, we're growing meaningfully in markets like Chile, Colombia, and Central America.

Mark Barrocas: The breadth of our three pillar growth strategy equips SharkNinja with multiple ways to drive towards durable success. This distinction has never been more important than right now, with pronounced crosscurrents in the macro economy. Despite the level of uncertainty and shifting consumer sentiment, our product hallmark performance, quality, and value are still resonating. You can see this in our results and retailer data with strong POS trends year to date ahead of shipments and a carefully crafted strategy around inventory growth to complement our tariff mitigation plan. Patrick will walk through the details in a moment. We feel very good about our inventory position as a key advantage to fuel future growth, and we consider our liquidity and leverage profiles to be excellent. It's also important to remember just how diversified SharkNinja has become over the last several years.

Speaker Change: This distinction has never been more important than right now with pronounced crosscurrents in the macro economy.

Speaker Change: Strong and growing relationships with retail partners are just as critical to our international success as they are within domestic business.

Speaker Change: Despite the level of uncertainty and shifting consumer sentiment.

Speaker Change: In Europe specifically, I'm pleased to say we have recently completed new agreements with most of our major partners to gain considerable additional shelf space ahead of holiday 2025.

<unk> hallmark performance quality and value are still resonating.

Speaker Change: You can see this in our results and retailer data with strong Pos trends year to date ahead of shipments and a carefully crafted strategy around inventory growth for <unk>.

Speaker Change: Consumers are clamoring for our products, retailers are committing to us in a bigger way, and we're very enthusiastic about the potential we see all around the globe.

Speaker Change: Complement our tariff mitigation plan.

Speaker Change: Patrick will walk through the details in a moment, but we feel very good about our inventory position as a key advantage to fuel future growth and we consider our liquidity and leverage profiles to be excellent.

Speaker Change: The breadth of our three-pillar growth strategy equips SharkNinja with multiple ways to drive towards durable success.

Speaker Change: This distinction has never been more important even right now, with pronounced cross-currents in the macro-economy.

Speaker Change: It's also.

Speaker Change: Important to remember just how diversified shark ninja has become over the last several years.

Speaker Change: Despite the level of uncertainty and shifting consumer sentiment, a product hallmark, performance, quality and value are still resonating.

Speaker Change: We participate the vast addressable markets across various price points channels retailers demographics geographies and more.

Mark Barrocas: We participate in vast addressable markets across various price points, channels, retailers, demographics, geographies, and more. Our strong and growing portfolio of categories and distribution vectors is a huge part of our long-term strategy that also guards against becoming overly dependent on just one or two ways to win. We remain committed to launching at least 25 new products in 2025, with an unwavering focus on our future pipeline. As I spoke about earlier, the more disruptive innovation SharkNinja can bring at the enormous and compounding scale we have today, the more distance we'll continue to put between ourselves and everyone else. Before I wrap up, I'd like to reiterate a few of the key reasons we're so pleased about Q1 and so optimistic about moving forward.

Speaker Change: You can see this in our results and retailer data with strong POS trends year-to-date ahead of shipments and a carefully crafted strategy around inventory growth to complement our parafmitigation plan.

Speaker Change: Our strong and growing portfolio of categories and distribution vectors is a huge part of our long term strategy that also guards against becoming overly dependent on just one or two ways to win.

Speaker Change: Patrick will walk through the details in a moment but we feel very good about our inventory position as a key advantage to fuel future growth and we consider all liquidity and leverage profiles to be excellent.

Speaker Change: We remain committed to launching at least 25, new products in 2025 with an unwavering focus on our future pipeline.

Speaker Change: As I spoke about earlier, the more disruptive innovation shark Ninja can bring at the enormous and compounding scale. We have today the more distance will continue to put between ourselves and everyone else.

Speaker Change: It's also important to remember just how diversified SharkNinja has become over the last several years.

Speaker Change: We participate in vast addressable markets across various price points, channels, retailers, demographics, geographies and more.

Speaker Change: Before I wrap up I'd like to reiterate a few of the key reasons. We're so pleased about Q1, and so optimistic about moving forward.

Speaker Change: Our strong and growing portfolio of categories and distribution vectors is a huge part of our long-term strategy that also guards against becoming overly dependent on just one or two ways to win.

Speaker Change: We've implemented various initiatives that are taking aggressive actions to mitigate the impact of tariffs across buy side sell side and opex work streams as discussed.

Mark Barrocas: First, we've implemented various initiatives that are taking aggressive actions to mitigate the impact of tariffs across buy side, sell side, and OpEx work streams as discussed. Second, consumer demand for SharkNinja products remains high. The various top line metrics we monitor were solid throughout Q1 and Q2 is off to a good start. Finally, we're confident in our ability to gain market share against the competition despite any macroeconomic shifts that may manifest this year. This confidence comes from all the things that make SharkNinja unique, an obsession for the consumer, our exceptional innovation engine, our world class demand generation capabilities, a healthy and improving financial profile, our diversified and resilient global supply chain, and the tireless pursuit of excellence that is core to our culture. These success drivers have always defined SharkNinja from within, and we're proud to see this reflected with external recognition as well.

Speaker Change: We remain committed to launching at least 25 new products in 2025 with an unwavering focus on our future pipeline.

Speaker Change: Second consumer demand for shark Ninja products remains high.

Speaker Change: Various top line metrics, we monitor were solid throughout Q1, and Q2 is off to a good start.

Speaker Change: As I spoke about earlier, the more disruptive innovation SharkNinja can bring at the enormous and compounding scale we have today, the more distance we'll continue to put between ourselves and everyone else.

Speaker Change: Finally, we are confident in our ability to gain market share against the competition. Despite any macroeconomic shifts that may manifest this year.

Speaker Change: Before I wrap up, I'd like to reiterate a few of the key reasons were so pleased about Q1 and so optimistic about moving forward.

Speaker Change: This confidence comes from all the things that makes shark Ninja unique an obsession for the consumer are exceptional innovation engine, our world class demand generation capabilities, a healthy and improving financial profile, our diversified and resilient global supply chain and the.

Speaker Change: First, we've implemented various initiatives that are taking aggressive actions to mitigate the impacted terrorists across by side, cell side, and OPEX work streams, it's discussed.

Speaker Change: Tireless pursuit of excellence that is core to our culture.

Speaker Change: Second, consumer demand for Shark Ninja products remained high. The various pop line metrics we monitor were solid throughout Q1, and Q2 was off to a good start.

Speaker Change: <unk> success drivers have always defined shark ninja from within and we're proud to see this reflected with external recognition as well.

Speaker Change: Finally, we're confident in our ability to gain market share against the competition despite any macroeconomic shift that may manifest this year.

Speaker Change: This quarter, we received two tremendous honors first Newsweek named us to their list of most trustworthy companies in America. In 2025. This accolade is based on our survey results from over 25000 U S residents overlaid with the proprietary social listening analysis.

Mark Barrocas: This quarter, we received 2 tremendous honors. First, Newsweek named us to their list of most trustworthy companies in America in 2025. This accolade is based on a survey results from over 25,000 US residents, overlaid with a proprietary social listening analysis. We were also named to Fast Company's prestigious list of the world's 50 most innovative companies of 2025, earning the number 27 spot overall and number 2 in the design category. In an excerpt from our press release, Fast Company Editor in Chief Brendan Vaughan made a fitting observation.

Speaker Change: This confidence comes from all the things that make SharkNinja unique.

in a session for the consumer.

Our exceptional innovation engine, a world-class demand generation capabilities.

Speaker Change: We were also named to SaaS companies prestigious list of the world's 50, most innovative companies of 2025, earning the number 27 spot overall and number two in the design category.

Speaker Change: A healthy and improving financial profile are diversified in resilient global supply chain and the tireless pursuit of excellence that is core to our culture.

Speaker Change: These success drivers have always defined SharkNinja from within and we're proud to see this reflected with external recognition as well.

Speaker Change: And an excerpt from our press release fast company editor in Chief brand and Vaughan made a fitting observation.

Brad Vaughan: He described this year's list of winners by saying in part at a time when the world is rapidly shifting these companies are charging the way forward.

Mark Barrocas: He described this year's list of winners by saying in part, At a time when the world is rapidly shifting, these companies are charting the way forward. None of this momentum would be possible without the incredible team at SharkNinja, for which I'm incredibly thankful, especially during these last several weeks as we mobilize to face new challenges head on. As I said at the beginning, this is what we do best. We don't wait, we act. We don't pull back, we deliver, and we win together. Now Patraic will walk you through our Q1 financials and updated 2025 outlook.

Speaker Change: Newsweek named us to their list of most trustworthy companies in America in 2025. This accolade is based on a survey results from over 25,000 U.S. residents overlaid with a proprietary social listening analysis.

Speaker Change: None of this momentum would be possible without the incredible team at shark Ninja for which I am incredibly thankful.

Speaker Change: Especially during these last several weeks as we mobilize the face new challenges head on.

Speaker Change: We were also named to staff company's prestigious list of the world's 50 most innovative companies of 2025, earning the number 27 spot overall and number two in the design category.

Speaker Change: As I said at the beginning this is what we do best we don't wait We act, we don't pullback, we deliver and we win together and now Patrick will walk you through our first quarter financials and updated 2025 outlook.

Speaker Change: In an excerpt from our press release, Fast Company Editor-in-Chief, Brendan Vaughn made a fitting observation. He described this year's list of winners by saying in part, at a time when the world is rapidly shifting, these companies are charting the way forward.

Patrick Reagan: Thank you Mark and good morning, everyone. We're off to a strong start in 2025 and I'm excited to review, our first quarter results and increased guidance as.

Patraic Reagan: Thank you, Mark, and good morning, everyone. We're off to a strong start in 2025. I'm excited to review our Q1 results and increased guidance. As mentioned in our previous earnings call, Q1 had a lot of puts and takes, but in the end, we did what we said we were going to do and overachieved our plans. We continue to succeed by executing on our clear 3 pillar growth strategy. Our Q1 performance demonstrates that we are delivering on this strategy while at the same time navigating complex operational shifts. We continue to expand both product categories in which we compete and geographies where we serve our consumer. We are delivering these results all against the backdrop of policy uncertainty affecting our manufacturing centers. Now let's review the quarter.

Patrick Reagan: As mentioned in our previous earnings call Q1 had a lot of puts and takes but in the end. We did what we said we were going to do and over achieved our plans.

Speaker Change: None of this momentum would be possible without the incredible team at SharkNinja, for which I'm incredibly thankful, especially during these last several weeks as we mobilize the face new challenges head on.

Patrick Reagan: We continue to succeed by executing on a clear three pillar growth strategy.

Patrick Reagan: Our Q1 performance demonstrates that we are delivering on this strategy while at the same time navigating complex operational shifts.

Speaker Change: As I said at the beginning, this is what we do best. We don't wait, we act. We don't pull back, we deliver and we win together. And now Patrick will walk you through our first quarter financials and updated 2025 outlook.

Patrick Reagan: We continue to expand both product categories in which we compete in geographies, where we serve our consumers and we are delivering these results.

Patrick Reagan: All against the backdrop of policy uncertainty affecting our manufacturing centers.

Patraic Reagan: Thank you, Mark, and good morning everyone. We're off to a strong start in 2025 and a excited to review our first quarter results in increased guidance.

Patrick Reagan: Now, let's review the quarter net sales in Q1 increased 14, 7% year over year to more than $1 $2 billion.

Patraic Reagan: As mentioned in our previous earnings call, Q1 had a lot of puts and takes, but in the end we did what we said we were going to do and over achieved our plans.

Patraic Reagan: Net sales in Q1 increased 14.7% year-over-year to more than $1.2 billion. Adjusted EBITDA decreased 13% to $200 million, which was, from an investment perspective, largely the purposeful result of substantial investments to fuel our growth, including driving international expansion, new product development, and advancing our supply chain diversification initiatives. We expected our geographical regions to grow similarly in Q1, and we saw just that as year-over-year net sales grew 15% domestically and 14% internationally. As we previously discussed, the transition of our Mexico distributor business to a direct model occurred in Q1 and has been successful, albeit with known revenue and Adjusted EBITDA headwinds in the quarter. Additionally, our international business outside of our UK air fryer business grew significantly across all regions with particular strength in Central Europe.

Adjusted EBITDA decreased 13% to $200 million, which was from an investment perspective, largely the purposeful result of substantial investments to fuel our growth, including driving international expansion, new product development and advancing our supply chain diversification initiatives.

Patraic Reagan: We continue to succeed by executing on our clear three-pillar growth strategy.

Patraic Reagan: Our Q1 performance demonstrates that we are delivering on this strategy while at the same time navigating complex operational shifts.

Patraic Reagan: We continue to expand both product categories in which we compete in geographies where we serve our consumer and we are delivering these results all against the backdrop of policy uncertainty affecting our manufacturing centers.

Patrick Reagan: <unk>.

Patrick Reagan: We expected our geographical regions to grow similarly in Q1, and we saw just that as year over year net sales grew 15% domestically and 14% internationally.

Patraic Reagan: Now, let's review the quarter. Net sales in Q1 increased 14.7% year-over-year to more than $1.2 billion.

Patrick Reagan: As we previously discussed the transition of our Mexico distributor business to a direct model occurred in Q1 and has been successful, albeit with known revenue in adjusted EBITDA headwinds in the quarter.

Patraic Reagan: Adjusted EBITDA decreased 13% to $200 million, which was from an investment perspective largely the purposeful result of substantial investments to fuel our growth.

Patrick Reagan: Additionally, our international business outside of our UK airframe business grew significantly across all regions with particular strength in central Europe.

Patraic Reagan: including driving international expansion, new product development, and advancing our supply chain diversification initiatives.

Patrick Reagan: Turning to performance by category, all four of our major product categories saw growth in the quarter.

Patraic Reagan: Turning to performance by category, all four of our major product categories saw growth in the quarter. Net sales in the cleaning category increased 5% year-over-year to $441 million from $422 million. Our cordless and extraction subcategories drove performance this quarter, while corded and robotic vacuums lagged a bit. Net sales in the cooking and beverage category increased 5% year-over-year to $346 million compared to $330 million. As we mentioned last quarter, we expected a challenging compare in the UK air fryer business in Q1 due to outsized growth last year. This was more than offset by the strength of Crispi in the US and our espresso business globally.

Patraic Reagan: We expected our geographical regions to grow similarly in Q1 and we saw it just that as year over year net sales grew 15% domestically and 14% internationally.

Patrick Reagan: Net sales in the cleaning category increased 5% year over year to $441 million from $422 million.

Patrick Reagan: Our cordless and extraction sub categories drove performance this quarter, while accorded in robotic vacuums lagged a bit.

Patraic Reagan: As we previously discussed, the transition of our Mexico distributor business to a direct model occurred in Q1 and has been successful, albeit with known revenue in adjusted Yvada headwinds in the quarter.

Patrick Reagan: Net sales in the cooking and beverage category increased 5% year over year to $346 million compared to $330 million.

Patraic Reagan: Additionally, our international business outside of our UK Air Fryer business grew significantly across all regions with particular strength in central Europe .

Patrick Reagan: As we mentioned last quarter, we expected a challenging compare in the UK airframe business in Q1 due to outsized growth last year.

Patraic Reagan: Turning to performance by category, all four of our major product categories saw growth in the quarter. Met sales in the cleaning category increased 5% year-over-year to $441 million from $422 million.

Patrick Reagan: But this was more than offset by the strength of Christi in the U S and our espresso business globally.

Patrick Reagan: Net sales in the food preparation category increased 45% year over year to $297 million compared to $205 million.

Patraic Reagan: Net sales in the food preparation category increased 45% year-over-year to $297 million compared to $205 million. This strong growth was driven by the continued success of our Slushi Frozen Drink Maker, as well as the launch of Swirl by Creami, which Mark touched on earlier. Finally, our beauty and home environment category increased 26% year-over-year to $138 million compared to $110 million. Exciting momentum behind our new CryoGlow skincare product and broad-based strength in FlexBreeze fans and air purifiers fueled growth in this category. Now let's move to gross profit. In Q1, Adjusted Gross Profit increased 13% year-over-year to $613 million or 50.2% of net sales.

Patraic Reagan: Our cordless and extraction subcategories drove performance of this quarter, while corded in robotic vacuum's lag to bit.

Speaker Change: This strong growth was driven by the continued success of our slushy frozen drink maker as well as the launch of squirrel by creamy which mark touched on earlier.

Patraic Reagan: Met sales in the Cooking and Beverage category increased 5% year-over-year to $346 million compared

Speaker Change: Finally, our beauty and home environment category increased 26% year over year to $138 million.

Patraic Reagan: As we mentioned last quarter, we expected a challenging compare in the UK Air Fryer Business in Q1 due to outsized growth last year.

Speaker Change: Compared to $110 million.

Speaker Change: Exciting momentum behind our new cryo Glu skincare product and broad based strength in flex Breeze fans and air Purifiers fueled growth in this category.

Patraic Reagan: But this was more than offset by the strength of crispy in the US and our espresso business globally.

Patraic Reagan: Met sales in the food preparation category increased 45% year-over-year to $297 million compared to $205 million.

Speaker Change: Now, let's move to gross profit in.

Speaker Change: In the first quarter adjusted gross profit increased 13% year over year to $613 million or 52% of net sales.

Speaker Change: This strong growth was driven by the continued success of our slushy frozen drink maker as well as the launch of swirl by creamy which Mark touched on earlier.

Speaker Change: Adjusted gross margin declined roughly 60 basis points year over year as anticipated with cost optimization and mix upside offset primarily by the impact of tariffs and the lapping of full price selling within EMEA of certain products like air Fryers.

Patraic Reagan: Adjusted gross margin declined roughly 60 basis points year-over-year as anticipated, with cost optimization and mix upside offset primarily by the impact of tariffs and the lapping of full price sell-in within EMEA of certain products like air fryers. Investing to drive further separation between us and the competition is a crucial strategic imperative at SharkNinja. As a result, we will continue to prioritize investment specifically, but not limited to R&D, product development, sales and marketing, geographic expansion, and supply chain diversification. In short, we continue to keep our foot on the gas, investing in ourselves and our growth strategy. Research and development expenses increased 26% year-over-year to $88 million, compared to $70 million in the year ago period.

Speaker Change: Finally, our beauty and home environment category increased 26% year-over-year to $138 million, compared to $110 million.

Speaker Change: Exciting momentum behind our new cryo-glo skin care product in broad-based strength in flex breeze fans and air purifiers fueled growth in this category.

Speaker Change: Investing to drive further separation between us and the competition is a crucial strategic imperative it's shirt ninja.

Speaker Change: As a result, we will continue to prioritize investment specifically, but not limited to R&D product development sales and marketing geographic expansion and supply chain diversification.

Now, let's move the gross profit.

Speaker Change: In the first quarter, adjusted gross profit increased 13% year-over-year to $613 million or 50.2% of net sales.

Speaker Change: In short we continue to keep our foot on the gas investing in ourselves and our growth strategy.

Speaker Change: Adjusted Gross Margin declined roughly 60 basis points year-over-year as anticipated with cost optimization in mixed upside offset primarily by the impact of tariffs in the building of full-price selling within a maa of certain products like air friars.

Speaker Change: Research and development expenses increased 26% year over year to $88 million compared.

Speaker Change: Compared to $70 million in the year ago period.

We are very excited about our new product pipeline for 2025 and beyond fueled by our powerhouse product development and engineering talent, we have on staff and continue to add to our teams.

Patraic Reagan: We are very excited about our new product pipeline for 2025 and beyond, fueled by our powerhouse product development and engineering talent we have on staff and continue to add to our teams. Sales and marketing expenses increased 29% year-over-year to $276 million, compared to $215 million in the year ago period. As with previous quarters, this increase was driven primarily by our strategic investment in advertising and personnel to support our new product rollouts and expansion into new markets, as well as higher delivery and distribution costs from increased order volumes, mainly in our direct-to-consumer businesses. General and administrative expenses increased 8% year-over-year to $95 million, compared to $88 million in the year ago period. Personnel additions and strategic technology investments made up the majority of the increase this quarter.

Speaker Change: Investing to drive further separation between us and the competition is a crucial strategic imperative at SharkNinja.

Speaker Change: As a result, we will continue to prioritize investments specifically but not limited to R&D product development, sales and marketing, gig credit expansion and supply chain diversification.

Speaker Change: Sales and marketing expenses increased 29% year over year to $276 million compared to $215 million in the year ago period.

Speaker Change: As with previous quarters. This increase was driven primarily by our strategic investment in advertising and personnel to support our new product rollouts and expansion into new markets as.

Speaker Change: In short, we continue to keep our foot on the gas, investing in ourselves in our growth strategy.

Speaker Change: Research and development expenses increase 26% year-over-year to $88 million, compared to $70 million in the year-ago period.

Speaker Change: As well as higher delivery and distribution costs from increased order volumes, mainly in our direct to consumer businesses.

Speaker Change: We are very excited about our new product pipeline for 2025 and beyond. Fueled by our Powerhouse product development and engineering talent, we have on staff and continue to add to our teams.

Speaker Change: General and administrative expenses increased 8% year over year to $95 million compared to $88 million in the year ago period.

Speaker Change: Personnel additions and strategic technology investments made up the majority of the increase this quarter.

Speaker Change: Sales and marketing expenses increase 29% year-over-year to $276 million, compared to $215 million in the year-ago period.

Speaker Change: Our GAAP effective tax rate was 19% in Q1, driven by a discrete benefit in the quarter related to stock based compensation, while our non-GAAP effective tax rate was 23%.

Patraic Reagan: Our GAAP effective tax rate was 19% in Q1, driven by a discrete benefit in the quarter related to stock-based compensation, while our non-GAAP effective tax rate was 23%. Adjusted net income for Q1 was $124 million or $0.87 per diluted share, compared to $149 million or $1.06 per diluted share in the year-ago period. Adjusted EBITDA for the quarter decreased by 13% year-over-year to $200 million or 16.4% of net sales, compared to $231 million or 21.6% of net sales in the prior year.

Speaker Change: As with previous quarters, this increase was driven primarily by our strategic investment in advertising and personnel to support our new product rollouts and expansion into new markets.

Speaker Change: Adjusted net income for the first quarter was $124 million or <unk> 87.

Speaker Change: as well as higher delivery and distribution costs from increased order volumes, mainly in our direct to consumer businesses.

Speaker Change: Per diluted share compared to $149 million or $1 <unk> per diluted share in the year ago period.

Speaker Change: General and administrative expenses increased 8% year-over-year to $95 million, compared to $88 million in the year-ago period.

Speaker Change: Adjusted EBITDA for the quarter decreased by 13% year over year to $200 million or 16, 4% of net sales compared to $231 million or 21, 6% of net sales in the prior year.

personnel additions in strategic technology investments

made up the majority of the increase this quarter.

Speaker Change: Our gap effective tax rate was 19% in Q1, driven by a discrete benefit in the quarter related to stock-based compensation.

Speaker Change: Turning to the balance sheet and cash flow one of the key advantages short NGL holds is our strong financial foundation that enables us to move quickly and Opportunistically.

Patraic Reagan: Turning to the balance sheet and cash flow, one of the key advantages SharkNinja holds is our strong financial foundation that enables us to move quickly and opportunistically. You saw this throughout 2024 as we pre-built inventory while also accelerating our investments to diversify our manufacturing capabilities. In Q1, we once again utilized our strong balance sheet to secure additional inventory and make further progress on our goal to shift US volumes outside of China to enable enhanced optionality regarding future production. At the end of Q1, cash and cash equivalents totaled $225 million, up 70% year-over-year, with total debt outstanding of $770 million for a net leverage ratio of 0.6 times.

while our non-GAAP effective tax rate was 23%.

Speaker Change: You saw this throughout 2024 as we prebuilt inventory, while also accelerating our investments to diversify our manufacturing capabilities.

Speaker Change: The adjusted net income for the first quarter was $124 million or $0.87 per diluted share compared to $149 million or $1.06 per diluted share in the year ago period.

Speaker Change: In Q1, we once again utilize our strong balance sheet to secure additional inventory and make further progress on our goal to shift U S volumes outside of China to enable enhanced optionality regarding future production.

Speaker Change: Adjusted EBITDA for the quarter decreased by 13% year over year to $200 million or 16.4% of net sales compared to $231 million or $21.6% of net sales in the prior year.

Speaker Change: At the end of the first quarter cash and cash equivalents totaled $225 million up 70% year over year with total debt outstanding of $770 million for a net leverage ratio of 0.6 times.

Speaker Change: Turning to the balance sheet and cash flow, one of the key advantages SharkNinja holds is our strong financial foundation that it enables us to move quickly and opportunistically.

Speaker Change: We also have nearly $490 million of capacity available to us on our $500 million revolving credit facility.

Patraic Reagan: We also have nearly $490 million of capacity available to us on our $500 million revolving credit facility. Our minimal debt and strong liquidity enable rapid decision-making that transforms challenges into opportunities, as demonstrated by our strategic inventory management and manufacturing diversification. Inventories reached $973 million exiting the quarter, up 30% year-over-year, with just under half of this increase due to intentional pre-builds related to tariffs. Before I turn to our updated outlook for 2025, I want to provide some context regarding the dynamic operating environment we find ourselves managing through. The evolving rates on both imports from China and our other manufacturing centers have us analyzing and modeling a wider range of scenarios and outcomes.

Speaker Change: You saw this throughout 2024 as we pre-build inventory while also accelerating our investments to diversify our manufacturing capabilities.

Speaker Change: Our minimal debt and strong liquidity enable rapid decision, making the transforms challenges into opportunities as demonstrated by our strategic inventory management and manufacturing diversification.

Speaker Change: In Q1, we once again utilize our strong balance sheet to secure additional inventory and make further progress on our goal to shift US volumes outside of China to enable enhanced optionality regarding future production.

Speaker Change: Inventories reached $973 million exiting the quarter up 30% year over year with just under half of this increase due to intentional.

Speaker Change: At the end of the first quarter, cash and cash equivalence totaled $225 million, up 70% year over year with total debt outstanding of $770 million for a net leverage ratio of 0.6 times.

Speaker Change: Builds related to tariffs.

Speaker Change: Before I turn to our updated outlook for 2025, I want to provide some context regarding the dynamic operating environment, we find ourselves managing through.

Speaker Change: We also have nearly $490 million of capacity available to us on our $500 million revolving credit facility.

Speaker Change: The evolving rates on both imports from China, and our other manufacturing centers of us analyzing and modeling a wider range of scenarios and outcomes.

Speaker Change: Our minimal debt and strong liquidity enable rapid decision making the transforms challenges into opportunities, as demonstrated by our strategic inventory management and manufacturing

Speaker Change: As Mark mentioned earlier, we have been exercising all opportunities available to us on both our buy side and sell side as we navigate the ambiguous environment.

Patraic Reagan: As Mark mentioned earlier, we have been exercising all opportunities available to us on both our buy side and sell side as we navigate the ambiguous environment. The strength of our innovative products, deep consumer connections, and strong relationships with our factory partners provide us with a powerful playbook of options in working with retailers and consumers while evaluating a wide array of tariff outcomes. Our revised outlook assumes tariffs remain where they are today, reflecting 145% for China and 10% for the remainder of Southeast Asia. Our guidance ranges are inclusive of these tariff assumptions in our mitigation efforts to offset, which are highly dependent on evolving global actions and reactions, as well as yet unknown relative consumer strength and retailer strategies.

Speaker Change: Inventories reached $972 million, exiting the quarter of 30% year-over-year, with just under half of this increase due to intentional pre-builds related to tariffs.

Speaker Change: The strength of our innovative products deep consumer connections and strong relationships with our factory partners provide us with a powerful playbook of options and working with retailers and consumers, while evaluating a wide array of tariff outcomes.

Speaker Change: Before I turn to our updated outlook for 2025, I want to provide some context regarding the dynamic operating environment we find ourselves managing through.

Speaker Change: Our revised outlook assumes tariff remain where they are today, reflecting 145% for China and 10% for the remainder of southeast Asia.

Speaker Change: The evolving rates on both imports from China and our other manufacturing centers have us analyzing and modeling a wider range of scenarios and outcomes.

Speaker Change: Our guidance ranges are inclusive of these tariff assumptions and our mitigation efforts to offset which are highly dependent on evolving global actions and reactions as well as yet unknown relative consumer strength and retailer strategies.

Mark Barrocas: As Mark mentioned earlier, we have been exercising all opportunities available to us on both our bi-side and cell-side as we navigate the ambiguous environment.

Speaker Change: Is we navigate the ambiguous environment the strength of our innovative products deep consumer connections in strong relationships with our factory partners provide us with a powerful playbook of options in working with retailers in consumers while.

Speaker Change: I want to underscore that even in this current environment of heightened macro a policy uncertainty shark Ninja remains relentlessly confident in our existing products robust innovation pipeline and our ability to execute.

Patraic Reagan: I want to underscore that even in this current environment of heightened macro and policy uncertainty, SharkNinja remains relentlessly confident in our existing products, robust innovation pipeline, and our ability to execute. While no one has a crystal ball on exactly how things will play out, we believe the resilience of our three-pillar growth strategy and our financial flexibility positions us well to adapt in the near term and continue to grow stronger in the mid to longer term. With the above context in mind, let's review our updated outlook. For the full year 2025, we now expect net sales to increase between 11% and 13%, slightly above our prior guidance of a 10% to 12% increase.

Mark Barrocas: Array of tariff outcomes.

Mark Barrocas: A revised outlook assumes tariff remain where they are today, reflecting 145% for China and 10% for the remainder of southeast Asia. Our guidance ranges are inclusive of these tariff assumptions in our mitigation efforts to.

Speaker Change: While no one has a crystal ball on exactly how things will play out we believe the resilience of our three pillar growth strategy and our financial flexibility positions us well to adapt in the near term and continue to grow stronger in the mid to longer term.

Mark Barrocas: Which are highly dependent on evolving global actions and reactions as well as yet unknown relative consumer strength in retailer strategies.

Speaker Change: With the above context in mind, let's review our updated outlook.

Speaker Change: For the full year 2025, we now expect net sales to increase between 11 and 13%.

Mark Barrocas: I want to underscore that even in this current environment of heightened macro and policy uncertainty shark Ninja remains relentlessly confident in our existing products robust innovation pipeline in our ability to execute while no one has a.

Speaker Change: Slightly above our prior guidance of a 10% to 12% increase.

Speaker Change: Adjusted net income per diluted share is now expected to be in the range of $4 92.

Patraic Reagan: Adjusted net income per diluted share is now expected to be in the range of $4.90 to $5.00, compared to $4.80 and $4.90 previously. Adjusted EBITDA is now expected to be in the range of $1.09 billion to $1.11 billion, representing growth of 15% to 17% year-over-year, compared to $1.07 billion to $1.09 billion, representing growth of 13% to 15% year-over-year. Net interest expense is still expected to be flat to 2024, and our GAAP effective tax rate remains in a range of approximately 24% to 25%.

Speaker Change: To $5 compared to $4 80.

Mark Barrocas: How things will play out we believe the resilience of our three pillar growth strategy and our financial flexibility positions us well to adapt in the near term and continue to grow stronger in the mid to longer term with the above context in mind.

Speaker Change: $4 90 previously.

Speaker Change: Adjusted EBITDA is now expected to be in the range of $1.09 billion to $1 one $1 billion.

Speaker Change: <unk> growth of 15% to 17% year over year compared to $1 7 billion to $1 $9 billion representing.

Mark Barrocas: For the full year 2025, we now expect net sales to increase between 11, and 13% slightly above our prior guidance of a 10% to 12% increased net income per diluted share is now expected to be in the range of $4.90.

Speaker Change: Representing growth of 13% to 15% year over year.

Speaker Change: Net interest expense is still expected to be flat to 2024, and our GAAP effective tax rate remains in a range of approximately 24% to 25%.

Speaker Change: Now with respect to capital expenditures, we are reaffirming our previous guidance of 180 million to 200 million for the year likely at the higher end of the range.

Patraic Reagan: Now, with respect to capital expenditures, we are reaffirming our previous guidance of $180 million to $200 million for the year, likely at the higher end of the range. Mirroring our conviction behind critical investments in operating expenses, we are intentionally tracking toward the higher end of our CapEx range as we remain committed to foundational supply chain investments that we believe will benefit SharkNinja now and into the future. To close, our strong Q1 performance demonstrates the continued effectiveness of our three-pillar growth strategy and our ability to deliver impressive results across key categories and markets. We feel especially confident about the aggressive actions we are taking to mitigate tariff impacts through our comprehensive initiatives around sourcing, supply chain, pricing, mix, and operational efficiency, all while maintaining our strong margin profile.

Speaker Change: Mirroring our conviction behind critical investments in operating expenses, we are intentionally tracking toward the higher end of our Capex range as we remain committed to foundational supply chain investments that we believe will benefit shark ninja now and into the future.

Mark Barrocas: Year over year, compared to 1.07 billion to $1.09 billion, representing growth of 13% to 15% year over year.

Mark Barrocas: Net interest expense is still expected to be flat to 2024, and our GAAP effective tax rate remains in a range of approximately 24% to 25% now with respect to capital expenditures, we are reaffirming our previous guidance of 100.

Speaker Change: To close our strong Q1 performance demonstrates the continued effectiveness of our three pillar growth strategy and our ability to deliver impressive results across key categories and markets.

Speaker Change: We feel especially confident about the aggressive actions, we are taking to mitigate tariff impacts through our comprehensive initiatives around sourcing supply chain pricing mix and operational efficiency.

Mark Barrocas: To 200 million for the year likely at the higher end of the range mirroring our conviction behind critical investments in operating expenses, we are intentionally tracking toward the higher end of our Capex range as we remain committed to.

Speaker Change: All while maintaining our strong margin profile.

Speaker Change: With our diversified portfolio strong consumer demand for shark Ninja products and exceptional innovation engine, we remain confident in our position to drive exciting top and bottom line growth in 2025 and beyond.

Patraic Reagan: With our diversified portfolio, strong consumer demand for SharkNinja products, and exceptional innovation engine, we remain confident in our position to drive exciting top and bottom line growth in 2025 and beyond. Finally, I would like to welcome James Lamb as our new Senior Vice President of Investor Relations and Treasury. James joins us from Wayfair, where he led both functions in addition to capital markets and tax during his tenure. Previously, he spent 18 years as a long-only equity research analyst. He's looking forward to working with all of you, and we are happy to have him on board. Now, I will hand it back to Mark.

Mark Barrocas: To close our strong Q1 performance demonstrates the continued effectiveness of our three pillar growth strategy in our ability to deliver impressive results across key categories and markets.

Speaker Change: Finally, I would like to welcome James Lam as our new senior Vice President of Investor Relations and Treasury.

Mark Barrocas: We feel especially confident about the aggressive actions, we are taking to mitigate tariff impacts through our comprehensive initiatives around sourcing supply chain pricing mix and operational efficiency, all while maintaining our strong margin profile.

Speaker Change: James joins us from <unk>, where he led both functions in addition to capital markets and tax during his tenure.

Speaker Change: Previously he spent 18 years is a long only equity research analysts.

Speaker Change: He is looking forward to working with all of you and we're happy to have him onboard now.

Mark Barrocas: With our diversified portfolio strong consumer demand for sharp Ninja products and exceptional innovation engine, we remain confident in our position to drive exciting top and bottom line growth in 2025 and beyond.

Mark Touch: Now I will hand, it back to Mark.

Mark Touch: Thanks, Patrick.

Mark Touch: By design, we've gone into great detail today to really illustrate how comprehensive and unique our strategy is to power through all of the uncertainty out there.

Mark Barrocas: Thanks, Patraic. By design, we've gone into great detail today to really illustrate how comprehensive and unique our strategy is to power through all the uncertainty out there. It is exceedingly rare to take on all these things we're doing while still driving world-class innovation across dozens of major categories. What we're accomplishing is hard to do, plain and simple. There is 1 final point I wanna drive home. SharkNinja has never prioritized solving for today at the expense of tomorrow. By steadily investing behind consumer insights, innovation, marketing, and distribution, we're continuously planting the seeds that produce durable organic growth over time. This winning strategy has proven itself time and time again for SharkNinja. In past periods of great upheaval or seemingly impossible challenges, we've come out better positioned for the long term, smarter, more differentiated, and more determined than ever. Thank you.

Mark Touch: It is exceedingly rare to take on all of these things, we're doing while still driving world class innovation across dozens of major categories.

Speaker Change: James Lamb is our new senior Vice President of Investor Relations and Treasury James joins us from Wayfair, where he led both functions. In addition to capital markets in tax during his tenure.

Mark Touch: What we are accomplishing is hard to do plain and simple and there is one final point I want to drive home.

Mark Barrocas: Previously he spent 18 years is a long only equity research analyst He's looking forward to working with all of you and we're happy to have him on board now I'll hand, it back to Mark Thanks, Patrick by design, we got.

Mark Touch: <unk> has never prioritized solving for today of the expensive tomorrow by.

Mark Touch: By steadily investing behind consumer insights innovation marketing and distribution, we're continuously planting the seeds.

Speaker Change: Today to really illustrate how comprehensive and unique our strategy is the power through all the uncertainty out there is exceedingly rare to take on all these things we're doing while still driving world class innovation across do.

Mark Touch: That produce durable organic growth over time.

Mark Touch: This winning strategy has proven itself time and time again for shark Ninja.

Mark Touch: In past periods of great upheaval or seemingly impossible challenges, we've come out better positioned for the long term smarter more differentiated and more determined than ever.

Speaker Change: What we're accomplishing is hard to do plain and simple and there is one final point I want to drive home Shark Ninja has never prioritized solving for today at the expense of tomorrow by steadily investing behind consumer insights inno.

Mark Touch: Thank you. This concludes our prepared remarks, and I'll turn it over to the operator to kick off Q&A.

Mark Barrocas: This concludes our prepared remarks, and I'll turn it over to the operator to kick off Q&A. Operator?

Mark Touch: Operator.

Speaker Change: Thank you Mark you will now begin the question and answer session.

Operator: Thank you, Mark. We will now begin the question and answer session. If you would like to ask a question, please press star followed by one on your telephone keypad. Please note due to time and fairness, we do ask that you please limit yourself to one question and one follow-up. If for any reason you would like to remove your request to ask a question, please press star two. Again, that is star followed by one. The first question we have comes from Randal Konik with Jefferies. You may proceed.

Speaker Change: Marketing and distribution, we're continuously planting the seeds that produce durable organic growth over time. This winning strategy has proven itself time and time again for shark Ninja in past periods of [noise].

Mark Touch: If you would like to ask a question. Please press <unk>.

Speaker Change: One on your kind of thank you Pat.

Speaker Change: Please thank each time and that is we do ask that you. Please limit yourself to one question and one follow up.

Speaker Change: And if any reason you would like to request you ask a question. Please press star two.

Speaker Change: Impossible challenges, we've come out better position for the long term smarter more differentiated and more determined than ever. Thank you. This concludes our prepared remarks, and I'll turn it over to the operator to kick off QA.

Speaker Change: And again Phillip Island.

Speaker Change: The first question we have comes from Randy Clinic with Jefferies. You May proceed.

Randy Clinic: Good morning, guys.

Speaker Change: Great stuff, yet again, so what.

Randal Konik: Good morning, guys, great stuff, yet again. One thing, Mark, I wanted to ask you about that'd be super helpful. We put out a product that kind of tracks search interest across your different products, there's a ton of them. One thing that we notice a lot is, in our work, is this accelerated search and interest in the new products which you want. It's a super healthy demand indicator. What do you think is different today beyond social media that is really helping the consumer discover or find out and notice these new products, you know, more quickly than in years past?

Speaker Change: One thing Mark I wanted to ask you about the Super helpful. We put out a product kind of frac search interest across your product different products.

Speaker Change: Operator.

Speaker Change: All of them and one thing that we noticed a lot is in our work is accelerated search and interest in the new products, which you want just super helpful healthy demand indicators.

Speaker Change: Please note due to time and fairness, we do ask that you. Please limit yourself to one question and one follow up and if any reason you would like to remove your request to ask a question. Please press start too and again that start followed by one.

Speaker Change: What do you think is different today beyond social media that is really helping the consumer discover or find out and notice these new products.

Speaker Change: [noise]. The last question, we have comes from Randy Connick with Jefferies. You May proceed.

Speaker Change: More quickly than in years past, just really kind of we all know about the innovation engine you have but I will say, it's also just as important to understand that discovery process, that's accelerating as well.

Randy Connick: Good morning, guys, great stuff, yet again, so what one thing Mark I wanted to ask you about the the Super helpful. We put out a product that kind of tracks search interest across your product different products, there's a ton of them and one thing that we notice a lot is this.

Randal Konik: Just really kind of we all know about the innovation engine you have, but I think it's also just as important to understand that discovery process that's accelerating as well on the side of the consumer. Thanks.

Speaker Change: Side of the facility.

Speaker Change: Yes, thanks, Randy So look if.

Mark Barrocas: Yeah. Thanks, Randy. Look, if I go back in the business 10 years ago, you know, we would put a product out in the market. No one would know the day that we're launching it. There'd be no sign up. There'd be no wait list. You know? It would take, you know, 3 to 6 months for kind of the demand to start building on the product. I mean, even, you know, if we run advertising around it, you know, it would take some time to kind of ramp up. I think one of the things that is first exciting, Randy, is the installed base that we have.

Speaker Change: If I go back in the business 10 years ago.

Speaker Change: We would put a product out in the market no. One would know the day that we're launching it there'll be no sign up there'll be no wait list it would take.

Speaker Change: Search and interest in the new products, what you want it's a super help healthy demand indicator.

Speaker Change: What do you think is different today beyond social media that is really helping the consumer discover or find out and notice. These new products more quickly than in your past just really kind of we all know about the innovation engineer.

Speaker Change: Three to six months for kind of the demand to start building on the product I mean, even if we run advertising around it would take some time to kind of ramp up.

Speaker Change: I think one of the things that is first exciting Randy is the installed base that we have.

Speaker Change: Just as important to understand that discovery process, that's accelerating as well on the side of the consumer. Thanks, Yeah. Thanks Rams. So look if I go back in the business 10 years ago, we would put a product in.

Speaker Change: The email file that we have I mean, when we go out with a new product and on the day that we're launching it we generally have a very large amount of sign ups from consumers that are already interested in purchasing it.

Mark Barrocas: You know, the email file that we have, I mean, when we go out with a new product and on the day that we're launching it, we generally have a very large amount of signups from consumers that are already interested in purchasing it. I mean, we launched the Swirl by Creami in Q1 of this year. You know, we launched it on a Tuesday morning at 9:00, and we were selling a unit every eight seconds. You know, we could have launched a product 10 years ago, and on the day that we launched, we would have sold two units, and likely those were two units that sold to the competition. You know, I think we've got this big installed base, this, you know, we've got a big file that we're marketing to.

Speaker Change: We launched the swirl by creamy in.

Speaker Change: In the first quarter of this year, we launched it on a Tuesday morning at nine o'clock and we were selling a unit every eight seconds.

Speaker Change: One would know the day that we're launching it there'd be no sign up there'd be no wait list you know it would take you know three to six months for kind of the demand to start building on the product I mean, even you know if we run advertising around it would take some time to kind of ramp up.

Speaker Change: So.

Speaker Change: We could have launched a product 10 years ago and on the day that we launched we would've sold two units and likely those were two units sold to the competition.

Randy Connick: The things that is first exciting Randy is the installed base that we have you know the email file that we have I mean, when we go out with a new product and on the day that we're launching it we generally have a very large amount of sign ups fromcha.

Speaker Change: So.

Speaker Change: I think we've got this big installed base.

Speaker Change: Yes.

Speaker Change: We've got a big file that we're marketing to we've got consumers that are kind of waiting for the next products.

Mark Barrocas: We've got consumers that are kind of waiting for the next products. We're seeding influencers with our products before launch, so they're already going out, and they're already teasing the products. I mean, Swirl was a great example. We brought about 15, 20 really strong Creami influencers behind the scenes. We let them use the product for 30 days. We let them develop content, and they were already seeding content 2 weeks before the product was launching into the market. It was already starting to build excitement and awareness for the product before we even launched. I think it's a model that we continue to keep refining. You know, it's a model that we're seeing that's working in the United States and Canada, and particularly in the UK.

Speaker Change: We're seeding influencers with our products before launch so they are already going out in the early teasing the products I mean swirl was a great example, we brought about 15 20 really strong creamy influencers behind the scenes, we let them use the product for 30 days with <unk>.

Randy Connick: We launched the swirl by creamy in the first quarter of this year you know we launched it on a Tuesday morning at nine o'clock and we were selling a unit every eight seconds. So you know it we could have launched a product 10 years ago and.

Speaker Change: Let them develop content and they were already seeding content two weeks before the product was launching into the market. So it was already starting to build excitement and awareness for the product before we even launched so.

Randy Connick: Would've sold two units and likely those were two units that sold to the competition. So I think we've got this big installed base. This we've got a big file that we're marketing to we've got consumers that are kind of waiting for the next product.

Speaker Change: I think it's.

Speaker Change: It's a model that we continue to keep refining.

Speaker Change: It's a model that we're seeing that's working in the United States, and Canada, and particularly in the U K. It's a model that we're tweaking for places like France, and Germany and Mexico.

Randy Connick: Proceeding influencers with our products before launch so they're already going out and they're already teasing the products I mean swirl was a great example, we brought about 15 20 really strong creamy influencers behind the.

Mark Barrocas: It's a model that we're, you know, tweaking for places like France and Germany and Mexico. Overall, I mean, there is just a lot more awareness and excitement the day a product launches versus waiting for, you know, 3 to 6 months for that to build up.

Speaker Change: But overall I mean, there is just a lot more awareness and excitement with day of product launches versus waiting for three to six months for that to build up.

Randy Connick: Space, we let them develop content and they were already seating content two weeks before the product was launching into the market. So it was already starting to build excitement and awareness for the product before we even launched so I think it's.

Speaker Change: Super Helpful and my last question is yes.

Randal Konik: Super helpful. My last question is, you know, in the script, you talked about solid sell-through, and expanded shelf space, I think acquired, you know, in the European market, obviously beyond the UK. Maybe elaborate on that a little bit more on what countries. Get a little more specific there. Maybe weave that in with all the exciting talent announcements you've been kind of putting out there from press releases that seem to be kind of catalyzing even more ability for this business to continue to scale and globalize going forward. Thanks, guys.

Speaker Change: In the script, you talked about solid sell through.

Speaker Change: And expanded shelf space I think acquired.

Randy Connick: It's a model that we continue to keep refining it's a model that we're seeing that's working in the United States, and Canada, and particularly in the UK. It's a model that we're tweaking for places like France, and Germany, and Mexico, but.

Speaker Change: In the European market, obviously beyond the U K, maybe elaborate on that a little bit more on what countries.

Speaker Change: You'll get a little more.

Speaker Change: Specific there and then maybe weave that in with all the <unk>.

Speaker Change: Citing talent announcements, you've been kind of putting out there from press releases that seem to be kind of analyzing even more ability for this business to continue to scale and globalize going forward. Thanks guys.

Randy Connick: Just a lot more awareness and excitement that day, a product launches versus waiting for you know three to six months for that to build up.

Speaker Change: Yeah, So I mean.

Randy Clinic: Specific to the Europe part I mean, I think what's exciting Randy is.

Mark Barrocas: I mean, specific to the Europe part, I mean, I think what's exciting, Randy Konik, is, you know, the relationships that are being built with the European retailers, you know, all the way up to the CEOs level. I had a CEO of a major UK retailer in Boston and had dinner with them a couple weeks ago. I'm headed to Paris next week, and I'm meeting with the CEO of a major retailer there and having dinner with them. Same in Germany. I think the relationships have really developed considerably because they're seeing, you know, the innovation, they're seeing the viral marketing, they're seeing the investment that we're making in the category.

Speaker Change: Super Helpful and my last question is you know in the script you talked about solid sell through and expanded shelf space. I think acquired you know in the European market, obviously beyond the U K, maybe a little bit.

Randy Clinic: The relationships that are being built with the European retailers, all the way up to the Ceos.

Randy Clinic: Level.

Speaker Change: CEO of a major U K retailer in Boston, and I had dinner with them a couple of weeks ago I'm headed to Paris next week meeting with the CEO of a major retailer there and having dinner with them same in Germany. So I think the relationships.

Speaker Change: What countries, what do more get a little more specific there and then maybe weave that in with all the exciting talent announcements you've been kind of putting out there from present to be kind of analyzing even more ability to this business to continue to scale and globalize going forward. Thanks guys.

Randy Clinic: Really really developed.

Randy Clinic: Consider it really because they're seeing the innovation they are seeing the viral marketing they are seeing the investment that we're making in the category.

Speaker Change: Yeah, So I mean specific to the Europe part I mean, I I think what's exciting Randy is you know the relationships that are being built with the European retailers you know all the way up to the Ceo's level I had a CEO of a major.

Randy Clinic: Many of these categories in Europe are not growing today and I think they are recognizing the kind of shark Ninja is a partner that they want.

Mark Barrocas: Many of these categories in Europe are not growing today, I think they're recognizing the kind of SharkNinja as a partner that they wanna build their business around. As a result of that, you know, we've seen an increase in commitments that we've received for particularly this holiday selling season in both the Shark and Ninja brands. You know, it's Germany, it's France, it's Benelux, it's the Nordics. You know, we're expanding in Poland, we're expanding in Spain. A lot of these European retailers have stores in multiple countries, so they're pushing us to continue to expand with them into these other markets. On the talent side, I think that one is a really exciting one.

Randy Clinic: Build their business around and so as a result of that we've seen an increase in commitments that we've received for particularly this holiday selling season in both the shark Ninja brands.

Speaker Change: U K retailer in Boston and had dinner with them a couple weeks ago I'm headed to Paris next week and I'm meeting with the CEO of a major retailer there and having dinner with them same in Germany. So I think the relationships.

Randy Clinic: And.

Germany is France.

Randy Clinic: It's been a locks it's the nordics.

Speaker Change: Really really developed considerably because they're seeing the innovation, they're seeing the viral marketing they're seeing the investment that we're making in the category. Many of these categories in Europe are not growing today.

Speaker Change: We're expanding in Poland, we're expanding in Spain.

Speaker Change: And a lot of these European retailers have stores in multiple countries and so they are pushing us to continue to expand with them into these other markets.

Speaker Change: On the talent side.

Speaker Change: And I I think they're recognizing the kind of sharkening as a partner that they wanna build their business around and so as a result of that we've seen an increase in commitments that we've received for particularly this holiday selling season in both the shark Ange.

Speaker Change: I think that one is is a really exciting one we have this concept here that we talk about which is building an unstoppable team of people that you would never want to compete against.

Mark Barrocas: You know, we have this concept here that we talk about, which is building an unstoppable team of people that you would never wanna compete against. I think that, you know, on the product development and engineering side, you know, I think we've done that over the course of the last 10 or 15 years. I mean, I think we have an extraordinary team of product developers and engineers. You know, we made a big new hire with Linus Karlsson coming in to really develop our global creative teams. We also announced in conjunction with that we were opening a creative marketing design office in New York City. We've just expanded that now, you know, with Michelle coming on board and Cleona coming on board.

Speaker Change: And I think that on the product development and engineering side I think we've done that over the course of the last 10 or 15 years I mean, I think we have an extraordinary team of product developers and engineers.

Speaker Change: And you know, it's it's Germany, it's France, it's it's Benelux, it's the Nordics you know, we're expanding in Poland, we're expanding in Spain, and and a lot of these European retailers have stores in multiple countries and.

Speaker Change: We made a.

Speaker Change: Our big new hire with Leanest Carlson coming in to really develop our global creative teams. We also announced in conjunction with that but we're opening a creative marketing design office in New York City.

Speaker Change: To these other markets on the talent side I think that one is a really exciting one you know we have this concept here that we talk about which is building and unstoppable team of people that you would never want to compete against and I think that.

Speaker Change: We've just expanded that now with Michelle coming onboard and Corona coming onboard I mean, we think beauty is going to be a category that is going to generate significant global growth for us over the next five years and we really feel like we need the talent that is going to be able to help us propel in those categories.

Mark Barrocas: I mean, we think beauty is going to be a category that is going to generate significant global growth for us over the next five years, and we really feel like we need the talent that is going to be able to help us propel in those categories to the next level. You know, that's not only happening at the senior level. I mean, it's also happening, you know, down in the organization as we continue to keep bringing in, you know, really talented, you know, really bright folks to help us expand and grow the business.

Speaker Change: <unk>.

Speaker Change: To the next level, but that's not only happening at the senior level I mean, thats also happening.

Speaker Change: Down in the organization.

Speaker Change: As we continue to keep bringing in really talented really bright folks to help us expand and grow the business.

Speaker Change: We also announced in conjunction with that that we were opening a a creative marketing design office in New York City. We've just expanded that now with Michelle coming on board in Cleona coming on Board I mean, we think beauty is gonna be a category that is going to.

Speaker Change: Super helpful. Thanks, guys.

[Analyst] (Jefferies): Super helpful. Thanks, guys.

Randal Konik: Super helpful. Thanks, guys.

Speaker Change: Thank you.

Speaker Change: We now have back right with Goldman Sachs on the line.

Operator: Thank you. We now have Brooke Roach with Goldman Sachs on the line.

Speaker Change: Good morning, and thank you for taking our question Mark I was hoping you can provide some further color on tariff mitigation lots of it in the prepared remarks, but have you fully offset the current tariff rates based on your initiatives for the U S. This year, what proportion of that mitigation is driven by the buy side the sell side.

Speaker Change: Significant global growth for us over the next five years, and we really feel like we need the talent that is going to be able to help us propel in those categories to the next level, but that's not only happening at the senior level I mean, it's also happening you know.

Brooke Roach: Good morning. Thank you for taking our question. Mark, I was hoping you can provide some further color on tariff mitigation. There's a lot said in the prepared remarks. Have you fully offset the current tariff rates based on your initiatives for the US this year? What proportion of that mitigation is driven by the buy side, the sell side, and your proactive inventory builds?

Speaker Change: As we continue to keep bringing in really talented really bright folks to help us expand and grow the business.

Speaker Change: You are proactive inventory builds.

Speaker Change: Yeah.

Speaker Change: Okay. So so brook.

Mark Barrocas: Brooke, I mean, you know, tariffs, you know, have hit us obviously in multiple phases. The Section 301 tariff exclusion lapsed in 2024, and so we had 25% tariffs coming in on many of our categories in 2024. We have the 10% tariff in February, the additional 10 in March, the other tariffs that came into effect in April. We quickly mobilized around the three pillars that I talked about in the prepared remarks on the buy side, the sell side, and the OpEx side. The impact of the tariffs was hundreds of millions of dollars. I wouldn't say that we have 100% mitigated the impact of that.

Speaker Change: Yeah.

Speaker Change: Terrace.

Speaker Change: Super helpful. Thanks, guys.

Speaker Change: That's obviously in multiple phases.

Speaker Change: Thank you we now have Brooke route with Goldman Sachs on the line.

Speaker Change: Obviously, the 301 tariff exclusion lapsed in 2024, and so we had 25% tariffs coming in on many of our categories in 'twenty four we have the 10% tariff in February the additional 10 in March.

Speaker Change: Good morning, and thank you for taking our question Mark I was hoping you can provide some further color on tariff mitigation. There's a lot set in the prepared remarks, but have you fully offset the current tariff rates based on your initiatives for the U S. This year.

Speaker Change: Other tariffs came into effect in April.

Speaker Change: And we quickly mobilized around the three pillars that I talked about in the prepared remarks on the buy side, the sell side and the operating expense side.

Speaker Change: What proportion of that mitigation is driven by the buy side the sell side and your proactive inventory builds.

Speaker Change: Yeah. Okay. So so brook I mean, you know tariff you know I've hit us obviously in multiple phases. I mean, you know obviously, the 301 tariff exclusion lapsed in 2024, and so we had 25 PERS.

Speaker Change: The impact of the towers with hundreds of millions of dollars.

Speaker Change: I didn't say that we have 100% mitigated the impact of that.

Speaker Change: I think we got comfortable to the point, where we feel that we were able to put out the numbers that we were able to put out based on the world that is today, I mean, which is a 145% tariff in China, 10% tariff everywhere else I mean, we're assuming that that's what it's going to be through the end of our fiscal year.

Mark Barrocas: I think we got comfortable to the point where we feel that we were able to put out the numbers that we were able to put out based on the world that is today, I mean, which is a 145% tariff in China and 10% tariff everywhere else. I mean, we're assuming that that's what it's gonna be through the end of our fiscal year. In terms of the breakdown on the buy side, sell side, and the operating expense side, look, you know, the operating expense is the most fixed one 'cause that's the one that's totally in our control. We've made those changes. I'm at least happy to say that, you know, we're not gonna go after places like R&D and innovation. I mean, we're gonna continue to launch 25 new products into the market this year.

Speaker Change: And we quickly mobilized around the three pillars that I talked about in the prepared remarks on the buy side, the sell side and the operating expense side.

Speaker Change: In terms of the breakdown on the buy side sell side and the operating expense side look the operating expenses. The most fixed one because that's the one that's totally in our control.

Speaker Change: You know the impact of the towers was hundreds of millions of dollars I wouldn't say that we have 100% mitigated the impact of that I think we got comfortable to the point, where we feel that we were able to put out the numbers that we were able to put.

Speaker Change: And we've made those changes and I am at least happy to say that.

Speaker Change: We're not going to go after places like R&D and innovation I mean, we're going to continue to launch 25, new products into the market. This year, we do need to get more efficient with our marketing and advertising spending and so that was a project. We were already working on we've continued to accelerate that and we've identified kind of other operate.

Mark Barrocas: We do need to get more efficient with our marketing and advertising spending. That was a project we were already working on. You know, we've continued to accelerate that, and we've identified kind of other operating expense areas for us to be able to pare back on and find efficiencies with. On the sell side, look, that's gonna be a fluid, you know, thing. I mean, we're gonna raise prices on certain products. Some of those prices are gonna stick and have no demand generation impact. Other of those, we might have to dial back a little bit. You know, what I could tell you, Brooke, is that this is a business that, you know, it gets the data, you know, reacts very quickly, you know, adapts to the environment that we're in, pivots quickly.

Speaker Change: World that is today, I mean, which is 145% tariff in China, and 10% tariff everywhere else I mean, we're assuming that that's what it's gonna be through the end of our fiscal year in terms of the breakdown on the buy side sell side and the operating expense side look.

Speaker Change: <unk> expense areas for us to be able to pare back on and find efficiencies with.

Speaker Change: On the sell side look that's going to be a fluid.

Speaker Change: Thing I mean, we're going to raise prices on certain products. Some of those prices are going to stick and have no demand generation impact other of those we might have to dial back a little bit so.

Speaker Change: Pretty expense is the most fixed one because that's the one that's totally in our control and we've made those changes and I'm at least happy to say that you know we're not going to go after places like Rd and innovation I mean, we're going to continue to launch 25, new products into the market. This year.

Speaker Change: What I can tell you Brook is that this is a business that.

Speaker Change: It gets the data.

Speaker Change: Reacts very quickly adapt to the environment that we're in pivot quickly, but I think between the buy side the sell side and the operating expense side, we feel like there's a good portion of those tariffs that are going to be mitigated but.

Speaker Change: We do need to get more efficient with our marketing and advertising spending and so that was a project. We were already working on we've continued to accelerate that and we've identified kind of other operating expense areas for us to be able to pair back on and find efficiency with.

Mark Barrocas: I think between the buy side, the sell side, and the operating expense side, you know, we feel like there's a good portion of those tariffs that are gonna be mitigated, but, you know, it's obviously not 100%.

Speaker Change: It's obviously not 100% yes.

Speaker Change: Sellside look that's gonna be a fluid you know thing I mean, we're gonna raise prices on certain products. Some of those prices are going to stick and have no demand generation impact other of those we might have to dial back a little bit. So you know what I could tell you.

Patrick Reagan: Yes, Hey Brook this Patrick.

Speaker Change: One thing I would just add on to what Mark is saying is it.

[Analyst] (Jefferies): Yeah. Hey, Brooke, this is Patrick. You know, one thing I would just add on to what Mark was saying is, you know, leading up to the call, you know, we'd seen a lot in the press and then even some notes this morning that were just like, you know...

Patraic Reagan: Yeah. Hey, Brooke, this is Patrick. You know, one thing I would just add on to what Mark was saying is, you know, leading up to the call, you know, we'd seen a lot in the press and then even some notes this morning that were just like, you know...How is SharkNinja able to pivot so quickly?

Speaker Change: Leading up to the call we've seen a lot in the press and then even some notes. This morning that we are just like.

Speaker Change: How is sharp and you're able to pivot so quickly and what I would just add on is that we've essentially been in training for this for several years and so we're we feel like we've got a competitive advantage and this is all the work the playbook that we leverage in terms of how we have agility.

Mark Barrocas: How is SharkNinja able to pivot so quickly? What I would just, you know, kind of add on is that we've essentially been in training for this for, you know, several years. You know, where we feel like we've got a competitive advantage in this is all the work, the playbook that we leverage in terms of how we have agility and flexibility in our supply chain. You know, when 2 April hit, we had already been working the problem. We obviously saw that, you know, we got some news that we didn't expect, the world got some news that wasn't expected, and we quickly pivoted into that playbook. We've been able to kind of work through that in, you know, really a truly unique SharkNinja way.

Patraic Reagan: What I would just, you know, kind of add on is that we've essentially been in training for this for, you know, several years. You know, where we feel like we've got a competitive advantage in this is all the work, the playbook that we leverage in terms of how we have agility and flexibility in our supply chain. You know, when 2 April hit, we had already been working the problem. We obviously saw that, you know, we got some news that we didn't expect, the world got some news that wasn't expected, and we quickly pivoted into that playbook. We've been able to kind of work through that in, you know, really a truly unique SharkNinja way.

Speaker Change: This is a business that you know I gets the data you know we acts very quickly you know adapts to the environment that we're in pivots quickly, but I think between the buy side the sell side and the operating expense side you know we feel.

Speaker Change: And flexibility in our supply chain.

Speaker Change: And when April 2nd hit we had already been working the problem. We obviously saw that we got some news that we didn't expect the world got some news it wasn't expected and we quickly pivoted into that playbook.

Speaker Change: They're gonna be mitigated, but it's obviously not 100% Yeah, Hey, Brooke This Patrick one one thing I would just add on to to what Mark was saying is leading up to the call. We've seen a lot in the in the press and then even some notes. This morning. We're just like you know how is short.

Speaker Change: And we've been able to kind of work through that and really a truly unique sharp major way and then.

Mark Touch: Just to tie us back to one comment that Mark made earlier is this gets right to the heart of the talent and the talent profile and the culture.

Mark Barrocas: Just to tie this back to one, you know, comment that Mark made earlier is, you know, this gets right to the heart of the talent and the talent profile and the culture that's in play every day here at SharkNinja. It's allowed us to, you know, take quick and decisive actions as we try to manage the uncertainty that we're facing into.

Patraic Reagan: Just to tie this back to one, you know, comment that Mark made earlier is, you know, this gets right to the heart of the talent and the talent profile and the culture that's in play every day here at SharkNinja. It's allowed us to, you know, take quick and decisive actions as we try to manage the uncertainty that we're facing into.

Mark Touch: In play every day here at sharpening just so it's allowed us to take quick and decisive actions as we try to manage the uncertainty that we're facing into.

Speaker Change: I have agility and flexibility in our supply chain and when April 2nd hit we had already been working the problem. We obviously saw that we got some news that we didn't expect the world got some news wasn't expected and we quickly pivoted into that playbook and.

Speaker Change: Patrick one quick follow up can you help us understand what gross margin assumptions are embedded within the guidance and how that should cadence throughout the year.

Brooke Roach: Patraic, one quick follow-up. Can you help us understand what gross margin assumptions are embedded within the guidance and how that should cadence throughout the year?

Mark Touch: Yes, so fundamentally without going into two greater detail.

Mark Barrocas: You know, fundamentally, Brooke, without going into too great a detail, I mean, you saw that, you know, overarchingly, we've not only reiterated, but we've raised our guidance on a full year basis. We fundamentally feel very strong about how we're managing through the year. Now, you know, with that being said, we're continuing, as Mark mentioned earlier, to be, you know, very nimble in how we're evaluating gross margin as we make our way through the year. What you can expect is, as we get into the back half of Q2 into the second half of the year, that we're gonna continue to evaluate the levers that we're pulling, whether that's on price, consumer reaction, strategies with our retailers.

Patraic Reagan: You know, fundamentally, Brooke, without going into too great a detail, I mean, you saw that, you know, overarchingly, we've not only reiterated, but we've raised our guidance on a full year basis. We fundamentally feel very strong about how we're managing through the year. Now, you know, with that being said, we're continuing, as Mark mentioned earlier, to be, you know, very nimble in how we're evaluating gross margin as we make our way through the year. What you can expect is, as we get into the back half of Q2 into the second half of the year, that we're gonna continue to evaluate the levers that we're pulling, whether that's on price, consumer reaction, strategies with our retailers.

Mark Touch: Solve it overarching Lee, we not only reiterated but we've raised our guidance.

Speaker Change: Able to kind of work through that in really a truly unique sharp ninja way and just to tie us back to one comment that Mark made earlier is this gets right to the heart of the talent and the talent profile and the culture. That's in play everyday here at shark Ninja So it.

Mark Touch: A full year basis. So we fundamentally feel very strong about how were managing it through the year now with that being said, we're continuing as Mark had mentioned earlier to be very nimble in how we are evaluating gross margin as we make our way through the year and so what you can expect is as we get into the back half of Q2.

Speaker Change: Patrick one quick follow up can you help us understand what gross margin assumptions are embedded within the guidance and how that should cadence throughout the year.

Mark Touch: Two into the second half of the year that will continue we're going to continue to evaluate the levers that we're pulling whether thats on price consumer reaction strategies with our retailers and we will adjust particularly on what we call the sell side as we as we move forward throughout the year. So while I can't give you a specific number.

Speaker Change: Yeah. So you know fundamentally brook without going into two greater detail. I mean, you you saw that you know overarchingly, we've not only reiterated but we've raised our guidance on a full year basis. So we fundamentally feel very strong about how we're managing through the year.

Mark Barrocas: You know, we'll adjust particularly on what we call the sell side as we move forward throughout the year. You know, while I can't give you a specific number on gross margin, that's how, you know, we're managing our way through it. It's kind of constant read and react.

Patraic Reagan: You know, we'll adjust particularly on what we call the sell side as we move forward throughout the year. You know, while I can't give you a specific number on gross margin, that's how, you know, we're managing our way through it. It's kind of constant read and react.

Mark Touch: On gross margin, that's how we're managing our way through it so it's kind of a constant we can react.

Mark Barrocas: That being said, we're continuing as market mentioned earlier to be very nimble in how we're evaluating gross margin as we make our way through the year and so what you can expect is is we get into the back half of Q2 into the second half of the year that.

Speaker Change: Thank you we have the next question from Derrick Li Okay.

Operator: Thank you. We have the next question from Rupesh Parikh with Oppenheimer & Co. Please go ahead.

Speaker Change: Please go ahead.

Derrick Li: Good morning, and thanks for taking my question. So I guess, just going back to North America, So very positive commentary quarter to Pos trends any sense of whether you saw any pull forward in demand in North America, and then and then how you think about just the growth for North America, just given a more uncertain environment going forward.

Rupesh Parikh: Good morning, and thanks for taking my question. I guess just going back to North America, you know, very positive commentary on quarter-to-date POS trends. Any sense of whether you saw any pull forward in demand in North America? You know, and then how you think about just the growth for North America, just given a more uncertain environment going forward.

Mark Barrocas: We're going to continue to evaluate the leverage that we're pulling whether that's on price consumer reaction strategies with our retailers and we'll adjust particularly on what we call the sell side as we as we move forward throughout the year. So I can't give you specific number.

Speaker Change: Yes.

Speaker Change: I don't think that we saw pull forward per se.

Mark Barrocas: Rupesh, I don't think that we saw pull forward per se. I mean, I, you know, our products are, you know, have an average sale price of $199 to $229. I mean, I think that may be kind of higher ticket items that you might be seeing the pull forward from. In terms of how do I see North America going forward, you know, baked into our numbers, I mean, we're assuming that there will be some revenue disruption in North America as a result of out of stocks, you know, that there'll be products that we will not be able to bring in sufficient inventory from China.

Speaker Change: Our products are now have an average sell price of $199 to $229.

Speaker Change: I I think that may be kind of higher ticket items that you might be seeing the pull forward from.

Speaker Change: Thank you we have the next question from Rupe Tarik with open. Please go ahead good morning, and thanks for taking my question. So I guess, just going back to North America. So very positive commentary quarter to day P. O S. T any sense of whether you saw any pull for it.

Speaker Change: In terms of how do I see North America going forward.

Speaker Change: So baked into our numbers I mean were assuming.

Speaker Change: There will be some revenue.

Speaker Change: Option in North America, as a result of out of stocks.

Speaker Change: There will be products that we will not be able to bring in sufficient inventory from from China.

Speaker Change: Yeah. So rupesh I I don't think that we saw whole forward per se I mean, I I you know our products are you know have an average sell price of $199 to $229 I mean, I I think that maybe kind of.

Speaker Change: I talked about we're going to be moving some of our new products that we expected to launch in North America or in the United States, We're now going to launch them.

Mark Barrocas: You know, I talked about, you know, we're gonna be moving some of our new products that we expected to launch in North America or in the United States. We're now gonna launch them first in Europe. It's kind of the opposite of what we faced last year, you know, where last year we had such strong demand that we didn't launch some of these new products in Europe. We only kept the inventory that we had for the United States.

Speaker Change: In Europe, it's kind of the opposite of what we faced last year, where last year, we had such strong demand that we didn't launch some of these new products in Europe, we only kept the inventory that we had for the United States. I think you will see the opposite of some of that this year, where there'll be products as we get into Q3 and Q4.

Speaker Change: Is that you you might be seeing the pull forward from in terms of how do I see North America going forward, you know baked into our numbers I mean, we're assuming that there will be some revenue disruption in North America as a result.

Mark Barrocas: I think you'll see the opposite of some of that this year, where there'll be products as we get into Q3 and Q4 that we've now quickly shifted and said we'll launch in Europe and the UK first, and then see how things play out and kind of move those products outside of China, and then be able to bring them into the United States maybe in Q4 into Q1 of next year. Look, I think, I think demand in North America, you know, we continue to feel upbeat about it. I mean, the retailers are supporting us. I mean, the retailers feel that, you know, they're excited. I mean, they're obviously concerned about supply. I think, you know, we'll get over some of those little hiccups in supply and kind of movement in NPD.

Speaker Change: Sure Yes.

Speaker Change: We've now quickly shifted and said, we'll launch in Europe, and the U K first.

Speaker Change: Out of stocks, you know that there'll be products that we will not be able to bring in sufficient inventory from from China.

Speaker Change: And then see how things play out and kind of move those products outside of China.

Speaker Change: I talked about we're going to be moving some of our new products that we expected to launch in North America or in the United States. We're now going to launch them first in Europe, it's kind of the opposite of what we faced last year, where last year, we had such.

Speaker Change: And then be able to bring them into the United States, maybe in Q4 into Q1 of next year or so.

Speaker Change: Look I think I think demand in North America, we continue to feel upbeat about it I mean, the retailers are supporting us and the retailers feel that theyre excited I mean, there are obviously concerned about supply.

Speaker Change: Some of these new products in Europe, we only kept the inventory that we had for the United States I think you'll see the opposite of some of that this year, where there'll be products as we get into Q3 and Q4 that we've now quickly shifted and said well launch in Europe.

Speaker Change: But I think.

Speaker Change: We'll get over some of those little hiccups in supply and kind of movement in NPD.

Speaker Change: And overall I mean, I feel like the domestic business is healthy.

Mark Barrocas: Overall, I mean, I feel like the domestic business is healthy.

Speaker Change: And then see how things play out and kind of move those products outside of China, and then be able to bring them into the United States, maybe in Q4 into Q1 of next year. So.

Speaker Change: Great. Thank you I'll pass it along.

Rupesh Parikh: Great. Thank you. I'll pass along.

Speaker Change: Thank you.

Speaker Change: We now have a question from Steven Forbes with Guggenheim Securities.

Operator: Thank you. We now have a question from Steven Forbes with Guggenheim Securities. You may proceed with your question.

Speaker Change: Proceed with your question.

Speaker Change: Look I I think I think demand in North America, you know, we continue to fill upbeat about it I mean, the retailers are supporting us I mean, the retailers feel that you know they're excited I mean, they're obviously concerned about supply.

Steven Forbes: Good morning, Mark Patrick James.

Steven Forbes: Good morning, Mark, Patrick, James. Mark, maybe just expanding on that point, right? You think about, you know, this environment and the retailer-vendor relationships and how they're evolving, where the opportunity is specifically for Shark. Can you maybe just, you know, reframe for us? I know you provided some comment in the prepared remarks, but just talk about how the conversation with your core US retail partners has evolved. What are they really asking from you today? You know, is there a huge shelf space opportunity ahead for Shark this year in particular, right? Due to the advantages you highlighted in the prepared remarks. How do you sort of give them confidence of this sort of mutually beneficial outcome that Shark can bring to the table?

Steven Forbes: Mark maybe just expanding on that point right you think about in this environment.

Steven Forbes: The retailer vendor relationships and how they're how they're evolving where the opportunity is.

Steven Forbes: Specifically for shark can you, maybe just reframe for us and I know you provided some comments in the prepared remarks I was just talk about how how the conversation with your core U S. Retail partners has evolved what are they really asking from you today is there a huge shelf space opportunity ahead for sharp this year.

Speaker Change: But I I think we'll get over some of those little hiccups and supply and kind of movement in N. P. D and overall I mean I feel like the domestic business is is healthy.

Speaker Change: Great. Thank you I'll pass it along.

Speaker Change: Thank you we now have a question from Steven folks with Gugenheim Security you May proceed your question.

Steven Forbes: In particular, the advantages you highlighted in the prepared remarks, and how do you sort of give.

Steven Forbes: To give them confidence.

Steven Folks: Good morning, Mark Patrick James Mark, maybe maybe just expanding on that point right. You think about this environment the retailer vendor relationships and how they're how they're evolving where the opportunity is specifically for shark can you maybe just ref.

Steven Forbes: Obviously at a mutually beneficial outcome that shar can bring to the table.

Steve: Yes, Steve.

Steven Forbes: The conversations I think have been.

Mark Barrocas: Yeah. Steve, you know, the conversations I think have been, you know, highly collaborative. I mean, they understand the situation that we're in. They see the steps that we're taking. You know, I think the increases that we're talking about passing along are smaller than what they're gonna see from others in certain categories. I think they're very appreciative of the fact that we made some of the supply moves outside of China, much faster. I think they're asking us, you know, is the innovation pipeline gonna continue at the pace that it's been at? Are you gonna continue to keep investing in media at the way that you are? I mean, those are some of the big questions that they...

Steven Forbes: <unk> collaborative I mean, they understand the situation that we're in.

Steven Forbes: They see the steps that we're taking.

Steven Folks: Provide some comment in the prepared remarks, we just talk about how how the conversation with your core U S. Retail partners has evolved what are what are they really asking from you today is there a huge shelf space opportunity ahead for shark this year in particular.

Steven Forbes: I think the increases that we're talking about passing along or smaller than what theyre going to see from others in certain categories. I think they're very appreciative of the fact that we made some of the supply moves outside of China much faster.

Speaker Change: The advantages you highlight in the prepared remarks, and how do you sort of give them confidence of the sort of mutually beneficial outcome that shark can bring to the table.

Steven Forbes: I think they are asking us.

Steven Forbes: Is the innovation pipeline going to continue at the pace that it's been at are you going to continue to keep investing in media at the way that you are.

Speaker Change: Yeah, Steve you know the conversations I think have been you know highly collaborative I mean, they understand the situation that we're in.

Steven Forbes: I mean, those are some of the big questions that they have with their hearing a lot from vendor communities as big Pullbacks.

Mark Barrocas: I mean, those are some of the big questions that they...You know, what they're hearing a lot from vendor communities is big pullbacks, big retrenching, and what I think they really wanna know is, you know, is SharkNinja still investing? You know, is SharkNinja still gonna drive people into their stores and drive people online, and is it still gonna, you know, maintain its innovation flywheel cadence and its viral marketing approach? I think that's the assurance that we need to give them and have been giving them that, you know, this is not a business that, you know, is gonna, you know, recoil, but we're gonna invest.

Mark Barrocas: You know, what they're hearing a lot from vendor communities is big pullbacks, big retrenching, and what I think they really wanna know is, you know, is SharkNinja still investing? You know, is SharkNinja still gonna drive people into their stores and drive people online, and is it still gonna, you know, maintain its innovation flywheel cadence and its viral marketing approach? I think that's the assurance that we need to give them and have been giving them that, you know, this is not a business that, you know, is gonna, you know, recoil, but we're gonna invest. They've asked us a lot of questions about our new product pipeline. You know, we're gonna do everything we possibly can to make sure that the holiday selling season, you know, is as great as it possibly can be.

Steven Forbes: Retrenching.

Speaker Change: They see the steps that we're taking you know I think the increases that we're talking about passing along are smaller than what they're going to see from others in certain categories. I think they're very appreciative of the fact that we made some of the supply Mo.

Steven Forbes: I think they really want to know is it.

Steven Forbes: As shark Ninja still investing with shock in India is still going to drive people into their stores and drive people online and is it still going to.

Steven Forbes: Maintaining its innovation flywheel cadence and its viral marketing approach and.

So I think that's the assurance that we need to.

Speaker Change: Much faster I think there asking US you know is the innovation pipeline going to continue at the pace that it's been at are you Gonna continue to keep investing in media at the way that you are I mean, those are some of the big questions that they would hear.

Steven Forbes: Give them and have been giving them that this is not a business that is going to.

Steven Forbes: Recoil.

Steven Forbes: But we're going to invest and they've asked us a lot of questions about our new product pipeline.

Mark Barrocas: They've asked us a lot of questions about our new product pipeline. You know, we're gonna do everything we possibly can to make sure that the holiday selling season, you know, is as great as it possibly can be. I mean, we've got a great balance sheet. You know, I mean, we're investing. You know, they're counting on us for growth, and I think we need to step up and deliver for them.

Speaker Change: Vender communities is big Pullbacks, Big Retrenching, and what I think they really want to know is you know is shark Ninja is still investing you know a shark ninja is still going to drive people into their stores and drive people online and it's still going to maintain.

Steven Forbes: We're going to do everything we possibly can to make sure that the holiday selling season.

Steven Forbes: Is as great as it possibly can be I mean, we've got a great balance sheet.

Mark Barrocas: I mean, we've got a great balance sheet. You know, I mean, we're investing. You know, they're counting on us for growth, and I think we need to step up and deliver for them. Thank you. I can confirm that does conclude the SharkNinja's Q1 2025 Earnings Call. You may now disconnect. Thank you all for your participation, and please enjoy the rest of your day.

Steven Forbes: I mean, we're investing.

Steven Forbes: They are counting on us for growth and I think we need.

Steven Forbes: Step up and deliver for them.

Operator: Thank you. I can confirm that does conclude the SharkNinja's Q1 2025 Earnings Call. You may now disconnect. Thank you all for your participation, and please enjoy the rest of your day.

Speaker Change: Thank you I can confirm that does conclude the sharpening just key 125 earnings call. You may now disconnect. Thank you for your participation.

Speaker Change: But we're gonna invest and they've asked us a lot of questions about our new product pipeline, we're going to do everything we possibly can to make sure that the holiday selling season is as great as it possibly can be I mean, we've got a great balance she.

Steven Forbes: Please enjoy the rest of the gang.

Speaker Change: Well I mean, we're we're investing.

Speaker Change: Their counting on us for growth and I think we need to step up and deliver for them.

Speaker Change: Thank you I can confirm that does conclude the shark Ninja's Q1, 25 earnings call. You may now disconnect. Thank you all for your participation and please enjoy the rest of your day.

Q1 2025 SharkNinja Inc Earnings Call

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