Guidance Raise and Q3/Q4 Expectations
Q: How should we think about the guidance raise and second half outlook?
A: Management raised second-half guidance, increasing estimates beyond just incorporating the Q2 beat. They expect mid- to high mid-teens growth over Q3 and Q4, driven by continued momentum and strong performance.

Sustainability of U.S. Growth
Q: What are the drivers of U.S. growth and its sustainability into next year?
A: U.S. growth is driven by a solid base business with market share gains in core categories, entrance into new categories, and expansion into new retailers. Management believes these factors are sustainable and expects continued growth without any one-time benefits.

Reinvestment Strategy
Q: How are you reinvesting outperformance to strengthen future growth?
A: The company is reinvesting from a position of strength by increasing R&D spending, hiring 150 more engineers, and investing nearly 7% of sales on R&D in Q2. Additionally, they are boosting advertising expenses to support new categories and geographic expansion, particularly in Europe, where markets grew triple digits.

International Growth Potential
Q: Can you discuss international market growth and size potential?
A: The international business grew 46%, with significant contributions outside the U.K. The U.K. market will be over $1 billion this year. Germany and France are growing triple digits, with the German market potentially over $1 billion. The company is expanding into other European markets and Latin America, seeing strong growth opportunities ahead.

Premium Product Strategy
Q: Is there a focus on expanding into more premium products?
A: While entering higher price points, the company remains committed to delivering extraordinary value. Products like the Ninja Cafe Lux at $499 offer high performance and versatility at a great value. They are pushing price points up where they see market opportunities but continue to offer exceptional value to consumers.

Portfolio Management and New Categories
Q: How are you balancing new category expansion with sustainable growth?
A: The focus is on maintaining a healthy, stable base business while innovating into it. They plan to launch at least one new product category in both the Shark and Ninja brands each year. Expansion into new categories and distribution channels is part of their three-pillar growth strategy, along with driving share in existing categories and international expansion.

New Products' Impact on Sales
Q: How much did new products contribute to sales growth, and what uplift is expected?
A: The majority of revenue was driven by existing products. New products like the Shark FlexFreeze contributed about $50 million in the first half. Products like Slushy, Ninja Cafe Lux, and new beauty products are expected to provide significant uplift moving forward, but new product revenue is currently relatively small.

Retailer Sentiment and Macro Impact
Q: Are you seeing changes in retailer posture amid macro challenges?
A: Retailers are cautious due to consumer inflationary pressures, but they recognize that SharkNinja is driving growth in their business. The company's approach to affordable, accessible innovation is resonating in the current consumer environment.

Lost Sales Due to Product Shortages
Q: How are lost sales from inability to fulfill demand being addressed?
A: Demand exceeding supply is seen as temporarily shifting sales rather than permanently losing them. For example, there's a waitlist of 100,000 units for the Slushy product. The company expects to catch up with demand by Q1 next year, recognizing that runaway successes require time to ramp up production.

Wholesale Distribution Expansion
Q: What are the plans for expanding wholesale distribution into new channels?
A: Expansion into channels like sporting goods is just beginning, with meaningful revenue impact expected in 2025 or beyond. In Europe and Latin America, entering new retailers is in early stages. These efforts are setting up growth for 2025–2026, with small impact anticipated in 2024.