SharkNinja, Inc. (SN) Earnings Call Transcript & Summary

Good afternoon, everyone. Just a quick disclaimer. For important disclosures, please see the Morgan Stanley Research disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley sales rep. So thanks, everyone, for joining. I'm Megan Clapp. I'm one of the U.S. consumer analysts here at Morgan Stanley. Really pleased to be here today with SharkNinja. The company's CEO, Mark Barrocas; and new CFO, Adam Quigley. SharkNinja probably needs no introduction. I'm sure everyone has one of their products in their homes. But global product design and technology company specializing in household appliances and consumer lifestyle products. Operates under 2 flagship brands: Shark and Ninja. So Mark and Adam, thanks so much for joining.

Thanks for having us.

Thank you.

Mark, maybe we can start, just zoom out. SharkNinja on track for mid-teens growth this year on the top line, low-teens in the U.S., high-teens internationally. Really impressive in a backdrop that clearly has not been easy for the category or the consumer. Maybe you could just start with what's meaningfully exceeded your expectations this year that's allowed you to deliver another year of record growth? And then maybe on the flip side, what are some of the challenges where you maybe had to navigate a bit more friction than anticipated?

Sure. Well, challenges are easy. I mean, listen, going to your first part of your question, it all starts with product. I mean the business is maniacally focused on solving consumer problems and developing products that solve consumer problems. And we do that across 38 different product categories. We do that globally. In the third quarter, as an example, I mean, we came out with an outdoor heater fire pit. We came out with a cordless stain cleaner. We came out with a facial product that extracts, depuffs and moisturizes your skin. And that's just 1 quarter of innovation that we brought to the market. And so for us, kind of everything starts with, what's the problem for us to solve? What's the consumer problem for us to solve? The second is, look, it's not good enough to just create a great product. I mean you've got to create consumer demands for the product. And for us, that is a sizable investment in media and marketing assets. And that could be everything from our partnerships with David Beckham and Kevin Hart and Tom Brady, to macro influencers and micro influencers and experiential events and TV and out-of-home, the whole surround sound of how do we get the consumer excited about the products that we sell. The third is a dominant omnichannel strategy. I mean we've got a great direct-to-consumer business. We're the most search brands on Amazon in our space. And we're in every major brick-and-mortar retailers. So I mean we're relevant wherever the consumer chooses to shop for our products. And then it's supply chain. And supply chain, I would put in kind of the opportunity and the challenging bucket this year, which is, as challenging as it's been to move all of our U.S. production outside of China, I think it's made us a much more healthier business, a much more diversified business. It's allowed us to be able to be now in 6 countries sourcing product instead of 1, which we weren't 4 years ago. And look, we run towards problems; we don't run away from them. And I think it's a business of problem solvers.

As you think about some of those challenges, again of which there were many, tariffs, supply chain shifts, some uneven category trends in some of your markets, is there anything you learned about the organization that surprised you, or any big strategic shifts you made that were long term?

Look, I mean, I tell the story that kind of the day of April 2, of Liberation Day, where we got this news and said, okay, well, what do we do about it? And it really took us kind of an hour to kind of shake it off and say, okay, we've got to run towards this and we've got to figure out how to turn lemons into lemonade. And within 8 days, the organization had come up with 1,500 initiatives to mitigate the tariffs. And I think it's emblematic of a business that looks at a problem and sees it as an opportunity. And whether that is COVID, and we came out of COVID stronger than when we went into it. And whether that's the 2008, 2009 financial crisis, we came out of it stronger than we went into it. And so it's a business that continues to keep reinventing itself. I mean if I go back 17 years ago, 50% of our business was 1 product. And today we're in 36 different categories and we're in 26 different countries. And we continue to just keep disrupting ourselves and reinventing ourselves and recognizing that the only thing constant at SharkNinja is that things are going to change.

That's helpful. Maybe the question on everyone's mind, you talked about POS momentum exiting the third quarter. We're now through Black Friday, Cyber Monday. Can you share with us how demand has trended through the holiday season thus far?

So we went into the fourth quarter with a strong guidance number. I mean we guided with top line up 16%. And Q4 for us kind of starts with like Prime Day 2. We came out, we had a very strong Prime Day 2. From their Black Friday Deal started as early as the end of October. I mean they've been running now for the last couple of weeks. Coming out of the Black Friday week, we feel really good about our guidance. Growth in the domestic business, growth in the international business. The growth is pretty broad-based by product category. I think there's clearly pockets of the market that performed better than others over the course of the last 2 weeks. We re-platformed our direct-to-consumer site in the U.S. and Canada a couple of months ago, and we experienced great D2C growth. We're excited about TikTok Shop. We were the second largest brand on TikTok Shop in the month of October. So I think there's real pockets of strength in the business. But again, it's being driven by our innovation, our demand creation. And so overall, we feel good about the guidance number.

Great. Maybe just sticking with the U.S. You had a great year in the U.S. SLUSHi had a breakout year; Beauty, you continue to expand. But you also deprioritized some innovation when tariffs hit. So what does the innovation pipeline look -- what does that look like into 2026 compared to 2025 to the extent you can share? And how do you think about maintaining the momentum you've seen in the U.S. this year?

Well, look, I mean, while the supply chain got disrupted, we developed the 25 products that we expected to develop in the year. I mean if you just look at the last, let's call it, 8 weeks, I mean we came out with a product in Ninja BlendBoss, and we came out with the FacialPro Glow, we came out with the Shark StainForce, and we came out with new products in hair care and skin care. And so we developed all the products. We just, as a challenge from a supply chain standpoint, we weren't able to get them to market in the scale that we wanted to. So what that means is that there's a good pipeline of innovation that's ready to go for the beginning of 2026. We'll get pipeline fills from retailers in January. It's not like we're going to be waiting for new products to launch in this quarter or third quarter. We've got a great pipeline of new products in the first quarter for us to go to market with. On top of that, our '26 road map, we'll launch 25 new products in 2026 into the market. And so I think '26 is going to present an interesting opportunity for us globally where there's a lot of innovation that we've got across a lot of different categories. Now investors have asked me, well, like, is there too much? Like when is enough -- when is it too much? And I think what's exciting about it is that, look, we have to be careful, for example, not to launch multiple Ninja products at the same time. But we're hitting different demographics of consumers. We're hitting different price points of consumers. I mean for us to launch a hair care product and a cooking product and a robot product, like those can come roughly in similar time frames. But '26 has got a really robust pipeline of new innovation.

Got it. And obviously, that will help international as well. But international has had some unique dynamics that have impacted various markets this year. Maybe you can break those out, talk about some of those things and, just broadly, whether you see a path for international growth to actually reaccelerate as you maybe move past some of the headwinds you saw in the U.K. with the air fryer market and these distributor transitions, et cetera.

Look, I mean, in the third quarter, our international business grew 25%. I mean, I think in most companies, you would say like that's pretty good. I think we expect our business to do roughly similar or a little bit better in the fourth quarter. So I mean, the numbers that we're talking about here are relative to SharkNinja, not relative to the overall market. Our U.K. business coming out of '26 -- '25 is going to be a much healthier business than it was coming out of the end of '24. I mean it's more diversified, it looks a lot like the North America business. It's diversified from a channel standpoint, from a consumer standpoint, strong gross margins. Our average sale price is improving in the U.K. Our business in Germany is performing great. Germany is looking very diversified. But there's also some structural changes that we're making with the international business to move from distributor markets to direct markets. And I think we learned a lot with our transition of Mexico earlier on in the year where we probably shouldn't have done a big-bang approach as we did. There is a role for distributors in all of these markets. We want to kind of sell directly to larger retailers and the direct-to -- and we want to control the direct-to-consumer business. So the decision we've made is that we're going to go and convert markets like the Nordics and Poland and Benelux in Q3 and Q4 of this year; Spain and Italy in the first and second quarter of next year. And we're going to just flow those numbers through our international business. There'll be some blips, but by the end of Q2 of next year, we'll have a right-sized portfolio of where do we want to be direct versus where do we still want to maintain distributorships.

And can you just talk a little bit about the strategic decision to move direct in certain markets versus not others perhaps? And maybe, Adam, you can talk about -- help us understand the margin implications of some of the transitions?

Yes, listen, there's a role and there has historically been a role for us with using distributors to kind of learn the market and understand the market. But we've come to realize in Europe that, look, the retailers are cross-border retailers. Like us being an American company that comes in and says, MediaMarkt, we're going to sell you in Germany. Well, MediaMarkt says, "Well, what about our stores in Italy and Spain, Turkey and all these other markets?" And our answer historically has been, well, you have to go speak to our distributors in all these other markets. Well, that's not a good answer. And so there's logical reasons why we want to control the larger retailers and the direct-to-consumer market. And we also want to control the marketing. I mean we've put local content creators into places like the Middle East. We've put local content creators into Paris and Frankfurt, and we have them in Madrid and we're expanding them into Milan. And so we want to control the marketing. We want to control the demand creation. We want to control the larger retailers. We want to control the direct-to-consumer business. And the only way to do that is for us to take back these distributorships and have a direct model.

Yes. And then on the gross margin front, certainly, there's structural benefit from going -- excuse me -- going from distributor to direct, right, just from fundamentally different structure there. As we look at the benefit of that, we can now get in with the retailer and start to negotiate some of the terms, start to leverage some of our scale. We've done a lot of that in the U.K. this year. We did a lot of that in the U.S. prior to that. And it's a matter of looking across our entire category set and understanding where do we want to partner with the retailer to better drive product, to better drive the promotions and have a lot more efficiencies there. And so over time, we can then improve that gross margin now that we've become direct in that market. As a result, we do have outsized OpEx expense that we'd be investing in. We'd be bringing on the media ourself, which we're controlling, as Mark mentioned. Also building out the local teams. And so, OpEx, you're going to have an increase; gross margin, you're going to have an expansion. Net-net, you're going to have an EBITDA rate expansion, which is what our goal is at the end of the day. The other benefit is, you look at this past Black Friday, our teams, something that we do really well is making changes on the fly, toggling between media, between prices, between promotions. You can't do that if you're operating in a distributor type structure. You can do that when you're direct. And that allows us just to react to what we're seeing very quickly in the moment, rather than having to wait until the end of the season and then maybe get it right the next year.

Makes sense. And maybe, Adam, sticking with you, just bigger picture on gross margin. You've managed it quite well this year despite all of the tariff headwinds and supply chain challenges thrown at you. What's been -- simple question, but like what's been the primary driver of the impressive gross margin performance?

I think the primary driver of the gross margin performance is everything. And it's honestly, Mark's comment on April 2 when we kind of put everything on the table, that was one moment in time. But really the work against it began years prior when we won -- started the diversification effort outside of China. And that wasn't just for tariffs, right? That was for a better geographic diversification for our supply base, which, as we sit here today, gives us a lot of pricing power, a lot of negotiation power with our retailers, with our factories, to be able to make sure that our dual sourcing is giving us the best possible price. And so as I look across the gross margin spectrum, a lot of that is coming through on the buy side, so what we're buying the actual cost set -- actual product set. On the sell side, to what I mentioned earlier, it's the retailer partnerships. It's renegotiating legacy terms. It's optimizing the prices, the promotions. We did take price. We took price early on in this year. That wasn't just the result of tariff. That was taking price on innovation. That was looking at price where the consumer was willing to pay for the innovation. SLUSHi is a great example of that, that launched a year ago at $280. Within 48 hours, it was at about $300, and we took another price increase in Q1. That was unrelated to tariffs. That was just a matter of what's the innovation worth to that consumer. Same thing was seen in a couple of other categories across beauty and others. The other component is mix. We've seen a lot of great mix benefit as we've entered some of these new categories, like beauty, espresso, that, structurally, that's not going away. And so we're going to annualize the tariff impact going into next year as we have a full year of tariffs. This year, we only had about half of that. But some of these structural changes that we started to make midyear this year, we'll also annualize into next year.

Right. So it's fair to say there's some tailwinds, some headwinds as we think about gross margin in 2026. Any other way you'd frame the puts and takes, without giving guidance, of course?

That's right. There's lots of puts and takes. We're in the middle of our plan. I think we feel really good about where the puts and takes are landing, but certainly still a lot to work through. But the other thing I'll mention is it's not just a gross margin story. You've seen from us the last few quarters our ability to leverage OpEx. We said we were going to leverage OpEx. We did leverage OpEx. And so that remains a primary lever of ours as well, to make sure that, again, it's the EBITDA rate expansion that we're achieving at the end of the day.

Mark, back to you. Investors, this is a question you've probably answered a million times, but I think it's an important one because I think investors often view small appliances as the category is competitive, promotional, price driven. I think you've proved you have a competitive moat. But there's been certain instances in the U.K., for instance, where competition has come in. And you've moved through that and you've perhaps proved that the diversification -- you've definitely proved that diversification matters from that perspective. But sitting here today, how do you -- how should investors think about kind of handicapping that risk in broader categories and you maintaining that competitive moat broadly?

Look, I mean, let's start off with like, while we've been a U.S. public company for 10 quarters, I mean I've been doing this for 17 years. I mean over the last 17 years, the business has grown at a compounded growth rate of 21% a year, in the last 17 years. So I mean, this story didn't just start. I mean we didn't -- I was asked the same question when the business was $300 million or $500 million. How are you going to keep growing it? We're at a point now where as you look at next year, if we were to grow double digits next year, I mean we'd have to grow our business $700 million. And where is that growth going to come from? And we've never acquired $1 of revenue in the company's history. And I don't think we need to acquire $1 of revenue. I mean I think there's still a lot of organic pathways for growth for the business. I think there's still lots of share in existing categories that we're in, there's lots of categories that we're single-digit market share in. We've got a really unique ability to not just enter a category and find the white space in a big definable category and get our fair share in the market. But we also have the ability to go and to create the market. I mean take a category like LED, infrared face masks. Last year, in 2024, total market size in the U.S. was $35 million. This year, I mean, the Shark CryoGlow alone in the U.S. will do $70 million. So we've enlarged the size of these markets. There's lots of new categories to expand into. I mean if you would have asked me 5 years ago, "Where else can we go in the home?" today it's like, where can we go outside the home? I mean outside the home, there are so many places for us to expand into. How do we look at products that can be used inside or outside of home? And then when it comes to international expansion, I think in the short to medium term, 50% of our business coming from outside of the U.S. is a realistic number for us to think about. So I think that when people look at our business, they look at some of the hit media products that we have. The fact is that we have a very strong, healthy base business that drives a lot of gross margin. There's a lot of embedded losses in our business. We're funding every new category that we enter into. We lose money for a period of time. Every new market we go into, we lose money for a period of time. That's all being funded within the existing business. There's lots of seeds that have been planted that will come to fruition and grow over the coming years. But I think you put all of those pieces together and our track record has shown us that we can keep inventing ourselves and continue to keep driving growth.

That's helpful. You said, if we grow double digits next year, I'm not asking for guidance, but maybe you can just -- your planning, you talked about gross margin. Innovation seems to potentially be a tailwind to next year, just your comments from earlier. Mexico was perhaps a challenge that you'll lap through; the U.K., you'll lap through that in the first half of this year. So seems to be like you could lap through some challenges and you'll have some nice tailwinds on the innovation side. So just any comments on puts and takes that I'm missing as we kind of think about the growth algo in '26.

I mean I think there's a lot of puts and takes. I think what you've mentioned are some of the tailwinds that we certainly have. I think as we look at 2026, certainly not giving guidance now, but as we look across growth in existing categories, growth in new categories, growth in international, I think we have an incredible, balanced portfolio going forward. And kind of looking at where we're at right now in our '26 planning process, there's a lot to be excited about in each of those different pillars. And I think that's when we're at our best, is when we've got that diversified portfolio to choose from. Because who knows what the macro issues will be next year? But that's something that we've never blamed any business results on. And so for us, it's a matter of controlling what we can control. So so long as we have a diversified portfolio in front of us, I think we're really excited about what '26 is going to bring.

Got it. That's helpful. Mark, you made an interesting comment in a meeting earlier about beauty tech and how, when you went into hair care, there was a clear premium player and competitor. With beauty tech, that hasn't really been the case. So with the CryoGlow, some of these new categories you've gone into, how have you approached the category from a pricing perspective, from a marketing perspective that's maybe been different than what you did with hair care? And yes.

Yes. Look, I mean we entered hair care a couple of years ago. And as you said, I mean, I think the world market today is a 2-horse race when it comes to premium hair care. But I think our aspirations were kind of well more than hair care, because, I mean, we're not taking a technology and applying it into a product; we're trying to find the next consumer problem to solve. And so as we started getting into the beauty space, we said, okay, well, where else -- where is the next problem for us to solve? And for us, kind of inspiration is either finding something the consumer has a problem with or finding something the consumer is doing outside their home that they're not able to do inside the home. So we went ahead, and as you said, we went into the Shark CryoGlow. It was not just our first skin care product; it was our first medical device. I mean it's an FDA-approved device. It's approved by the European Board as a medical device. And so it put us into a whole new category in technology of products. We followed that up with the FacialPro Glow. And what I pointed out was like our desire wasn't to be the best hair care company; it was our desire is to be the best beauty tech company. And I think as a result of that, there's lots of other places for us to explore from a beauty tech perspective. I mean we have LED technology competency. We have medical device development competency now. We have Peltier technology, having heating and cooling technology. There are so many other places to go. Could we go into the scalp? Could we go into nails? Could we go into other places within beauty? And that's really what you'll see kind of roll out over the next couple of years from us of how do we kind of think of Shark Beauty as not a single category, but as a beauty tech provider for consumers.

Got it. Good segue because I see these products all over TikTok with social media influencers. So not just that, but David Beckham, Kevin Hart, Tom Brady. Your marketing strategy and engine is something that really stands out. What are you doing differently? Maybe I just mentioned it. But what are you doing differently in demand generation that makes it hard for others to copy or where others just aren't going?

Okay. Well, let's start with this is not about just spending money. Like you have to have a product that has a story to tell. I mean if I go back 16 years ago, my partner and I made infomercials because that was telling the story about our product. Like how do we develop it? And what do we develop? And how do we demonstrate it? How do we show it to consumers? So you need a product that you can -- that has a story to tell, I mean, that has a reason for being. I mean I think what's so exciting about what we do is our products are in over 1,000 consumer homes before we even launch the product. I mean we're getting so much insights and feedback from consumers. And so now we've got this story to tell. So the question is how do you tell the story? We tell the story through kind of a pyramid approach. Like at the top of the pyramid is what you talked about, which is celebrity partners. I mean David Beckham and Kevin Hart and Tom Brady, because our products really have become part of culture. If you see what Kevin and David did in these neighborhood skits, and I mean, it really is kind of bringing our products to life in terms of how they're used in the home. Underneath that, there's macro influencers. And those macro influencers could be local influencers that have anywhere from 500,000 to multiple millions. And then underneath that, there's micro influencers. And those micro influencers could have really niche followership, but very high engagement. So when we go into developing a product, we look at that product and say, like, what's the right mix? Who are the people we want to partner with to go and develop and promote the product? And then that gets coupled with still a lot of traditional advertising. I mean TV commercials and out-of-home and billboards and experiential events and things like that. But it's all meant to kind of authentically communicate to the consumer, how is this product going to change your home, your life? How are you going to engage with it? How do you learn more about it? I mean I go back to like years ago, when I was a kid, there was a store in New York called SYMS, and they would say the educated consumer is our best customer. I want educated consumers buying Shark and Ninja products. That's why I'm so excited about TikTok Shop, okay? I think TikTok Shop is like the reinvention of QVC and HSN. I think the more consumers can be educated about what they're buying and what they're investing in, I think the more satisfied consumers we're going to have, the more evangelists for our products. And by the way, they're going to start the organic flywheel. I mean, yes, while the fire might get lit by a Tom Brady or by a macro influencer, the fire keeps going by just the everyday person that buys our products and then goes and tells 10 million of their closest friends with a TikTok or an Instagram video why they like this Shark or Ninja product.

How do you think about the role of agentic AI evolving in terms of driving demand and commerce broadly?

I think it's going to massively change our approach. I think consumers are going to search on whether it's ChatGPT or any of the other platforms. I think, ultimately, the consumer is going to transact on those platforms. I mean they're already starting to transact on those platforms. Look, you have to follow where the consumer is going. Like it's not our job to pick which retailers are going to win and lose. It's our job to watch where the consumer is going. I mean I think what TikTok did was so interesting because they had all these people on the platform and they said, "Well, how do we keep them on the platform and how do we get them to transact?" There's hundreds of millions of people every day that are on ChatGPT. Ultimately, they're going to come up with a way of how do we keep them on the platform, how do we get them to transact on the platform. It's our job to make sure that when they're on there, they get the information that they need and we're the brands of choice for them to choose from.

Helpful. Adam, if maybe we can go back to you. Newly stepped into the CFO role officially, but you've been deeply involved in the finance organization for more than a decade. As stepping into the role, how are you thinking about your priorities looking ahead? And maybe you can touch on capital allocation within that.

Yes. No, absolutely. Yes, I've been here almost 11 years now. And so I think I feel like I've gone through a lot of different events in the company's history and seeing a lot of the incredible growth, a lot of incredible category expansion. I think what is most exciting is looking at kind of what's ahead of us in terms of the 3 pillars that I talked about earlier, but also it's how much white space still exists out there. So I think in terms of my priorities, it's a matter of making sure that my finance team continues to be that strategic partner to the business to then unlock those opportunities, to light up those opportunities. We're a business that moves fast. And so where finance has the best role to play is by moving at that same speed of the organization, but helping those in the organization move faster, helping those in the organization make better decisions. So that's something I'm keenly focused on. Within the team itself, I'm really excited about the team that we have on board. I think we've got a great group to kind of continue to face the challenges that we have ahead. Working capital optimization and capital allocation, that's an area that I feel like we haven't even tapped into the opportunity there. I think one of the first opportunities that maybe we did lean into was last year with our balance sheet in terms of bringing on more inventory ahead of tariffs and be able to bring on an incredible amount of tariff prebuild, that really we're just now seeing the end of in Q4. Looking ahead, our #1 priority for capital allocation is internal. It is investing in the new geographies. It's investing in R&D. That's definitely the #1 priority that we'll continue to look at. Mark said it earlier, we've never acquired a $1 of growth; it's all been organic. And so I don't see that changing. That said, we'd be opportunistic, right? We are well positioned if something did come along that made sense. But at this point, it's not getting distracted by the shiny object. There's so much opportunity for us to capitalize on in front of us. But other things across the balance sheet. I mean share repurchase, that's always an opportunity that could be out there for us and is one that I think we look at going into 2026 as a great way to return value to the shareholders. There's a lot of other working capital initiatives that are already under flight. I talked about earlier moving from distributor to direct and the opportunities that that unlocks. Same thing on payment terms, same thing on the accounts receivable. There's a lot of other working capital optimizations that we're going to be after going into next year. And so again, I think starting from a position of strength with the balance sheet is a great position to be in, but then also respecting that we've got a lot of opportunity that we could still go from here.

As the rise of TikTok Shop and your DTC business grows, is there -- do you foresee any distribution strategic changes or needs arising as those, not alternative, but those channels continue to grow and maybe have a bit of a different distribution model?

I think it will accelerate our continued improvement across our distribution. Our distribution network has been a constantly evolving organism over the last 11 years that I've been in there. One of the first projects I worked on was setting up -- helping set up an East Coast distribution center to be able to get product to consumers quicker. That's not to put Amazon out, right? That's to be able to ensure that we're delivering great service to our consumers. That's within the U.S. Within Europe, you already have the ability to get product to consumers rather quickly. So it's really more a matter of making sure that we've set up the distribution network there to then capitalize on the new markets that we're going into and be able to set up for the growth that's to come in those markets. The other thing is looking at distribution centers that traditionally were shipping truckloads, and now having distribution centers that can do both truckload and individual parcels. Having the TikTok business on top of our D2C business is just a greater amount of volume for us to put through those warehouses, which just gives us more opportunities to continue to optimize and again leverage that scale.

Right. So we have a little over 5 minutes left. I just wanted to open it to the room, to see if there are questions. Any brave souls? No one? Okay. Well, feel free to raise your hand if you have any questions. Maybe if we can go back, just stick with the DTC business. You've talked about at the beginning, Mark, you relaunched the unified platform. How are you thinking about the role of DTC broadly going forward? Is it still mostly insights? Is it -- what does the role broadly for that segment look like?

Look, I mean, a credible destination for the consumer. I mean up until 8 weeks ago, I mean you had to go to 3 platforms if you wanted to transact with us. There was Ninja Kitchen, there was Shark Beauty, there was Shark Clean. I mean this holiday season now is the first time you could actually put in your cart a Ninja product and a Shark product together. So I think -- it's not to say that we're tipping the scales towards direct-to-consumer. I mean we want to be relevant wherever the consumer chooses to shop for our products. But the experience we've been providing on our site has not been great. I think we've upgraded it tremendously. I think that EMEA will be up and running by the beginning of the second quarter of next year. And I think that the consumer should be going to one destination to get all the information they want about our products, content about our products. And if they so choose to want to buy on the site, great, but it's totally up to them.

That's helpful. I'll open it again. Anyone? Okay. Adam, maybe a bit of a housekeeping item. But you've been discussing the -- becoming a domestic filer, that's been the goal, by the beginning of next year. Can you give us any update on just how that's going? Anything investors should keep in mind around the transition?

Yes. No, I would say it's going well. And I would also say that, look, this has been the intent since the spin back in July of '23. And so it's a work stream that we've been preparing for, we've resourced against. We've got our weekly meetings against it. And so I think we're on track, January 1, domestic filer, you'll see a 10-K from us. And so I think you're going to see the same level of disclosures that you'd get from any other domestic filer.

Great. Maybe we can -- you both mentioned it briefly, but just pricing. You've taken -- you can tell me how many times you've taken it in SLUSHi, prices up. I think it's been a lot. Tariffs, obviously, that was a lever you chose to pull this year. What's been the reaction from retailers as you've done some of those things? What's been the reaction from consumers? And what have you learned about your pricing power broadly this year?

Look, I mean we started focusing on pricing before the election. I mean, like I have said publicly, I was listening to a founder's podcast on LVMH and was inspired by our Arnault's approach to pricing. And I came back and kind of said to my team, like, do we really know what consumers are willing to pay for our products? And that started November of last year. And so we were kind of well down the path on this. We have taken price, but we've made sure that we maintain what we call extraordinary value for our products. I mean we think we need market-leading performance, high-quality products at a great value. And of the 80 or 90 price increases that we've taken across different products, look, some have stuck and have not had any demand impact. Some we've decided that we'll pulse more promotions, but we'll keep the price points up. And some we've had to roll back or kind of change out the products and put products in that we can afford. I mean there are certain price points -- for example, I mean, if you have a $99 blender at Walmart, that consumer is not looking for the $114 blender. I mean they're looking for the $99 blender. And so our ability to kind of say, hey, we can't sell you that same product at $99. We could sell you another product to fill that slot at $99. So I think to the point both Adam and I brought up of the 1,500 initiatives, I think SharkNinja goes through exhaustive detail that many other companies would just find exhausting, okay? I mean we have an initiative that takes place every week that we spend 5 hours on, which is a meeting called Obsessed With Winning. I mean we go through every single subcategory in every market, and all of our executives kind of sit through that meeting. I think you might look at other companies, you might say, like, "Do you do that once?" No, we do that every single week. Like, every week, we do that. And I think that kind of maniacal focus on the details is what's needed. That if I think about kind of last week with Black Friday, I mean, there's people that are hands on keys all day long, like updating Amazon and D2C and our media strategy. And we're making changes today for media that we're going to run this weekend based upon ROI that's coming in. But it's that level of detail that I think differentiates us.

Yes. Getting in under the wire. Is there a microphone somewhere? Up in the front.

Your largest shareholder has been selling shares on a kind of consistent basis. Is this something -- I mean, you obviously don't have any control over this, but is this something that we should be concerned about?

He still has a lot of shares. Yes. But I mean, that's up to him. But I mean, still a very strong believer in the business and still has a sizable share position, and has done it in a very orderly, organized way and provided a lot of transparency to it. So look, I think it's a good thing. I think he has sold down his shares, I think it's enabled other people to come into it. But it's totally up to him as to how that will transpire as we move forward.

Okay. I think we've got to wrap there. Mark, Adam, thank you so much for being here. Thanks, everyone, for joining.

Great.

Thank you.

Thank you.