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On Tuesday, analysts at William Blair reiterated their Outperform rating for SharkNinja stock (NYSE: SN). The decision comes amid ongoing challenges related to tariffs and inventory shortages, which are expected to impact the company’s second-quarter performance.
The firm noted that consumer demand remains stable, but the temporary pause on orders from China is affecting the availability of key products, particularly those under the Ninja brand. SharkNinja’s management anticipates that this constraint will persist during the second quarter. Despite these challenges, the company believes its 9.5% sales growth estimate for the quarter is still achievable, building on its impressive 27.3% revenue growth over the last twelve months.
A 90-day truce with China, announced on May 12, is expected to improve inventory availability, although it may take approximately six weeks for products to reach shelves. Some inventory, including the popular Ninja SLUSHi, was rerouted from Canada to mitigate shortages. However, this temporary agreement with China is unlikely to affect domestic product launches planned for this year.
SharkNinja is actively diversifying its supply chain and considering domestic production for certain products. The company has also raised prices on about 32% of its product range since mid-April to preserve inventory, which may affect short-term demand. Despite these challenges, SharkNinja aims to potentially accelerate market share gains later in the year as inventory levels stabilize. According to InvestingPro analysis, the company maintains strong financial health with a healthy current ratio of 1.97 and operates with moderate debt levels. For deeper insights into SharkNinja’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, SharkNinja reported a significant increase in revenue for the first quarter of 2025, with net sales rising 14.7% year-over-year to $1.2 billion, surpassing analyst expectations of $965 million. However, the company’s earnings per share (EPS) fell short of projections, coming in at $0.87 compared to the anticipated $0.95. Despite this earnings miss, SharkNinja’s stock experienced a positive reaction, reflecting investor confidence in its growth strategies. Meanwhile, BofA Securities maintained a Buy rating for SharkNinja, citing strong market share gains and resilience across product categories, despite a noted deceleration in sales growth post-Easter. Analyst Alex Perry highlighted the company’s continued market leadership, supported by Nielsen data indicating a 10.6% year-over-year increase in sell-through for the second quarter to date. SharkNinja’s product categories showed mixed performance, with hair dryers and fans seeing significant sales increases, while vacuum sales growth slowed. The company plans to launch 25 new products in 2025, aiming for continued international expansion and innovation. These developments underscore SharkNinja’s strategic focus on maintaining its market position and driving future growth.
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