Home, beauty and small appliance manufacturer SharkNinja (NYSE: SN) continues to attract more customers and has lowered costs by shifting its manufacturing to other Asian countries.
The company, which makes hundreds of household appliances under its two global brands, Shark and Ninja, has been shifting its manufacturing from China to Cambodia, Thailand, Indonesia and Malaysia in an effort to save costs on tariffs.
Shifting manufacturing away from China
One advantage SharkNinja has is maintaining a diversified supplier network in southeast Asia for the parts needed to manufacture its products. This allows the company to transfer its manufacturing orders between various regions and its plants due to current tariffs and pricing, CEO Mark Barrocas said in a May earnings call. Some products have dual sourcing to maintain a consistent supply, according to a company presentation.
“There may be a factory that is pushing us more on price, and we’ve had to move some of that production to another factory that is willing to not push on price, but wants more volume,” he said.
SharkNinja also has been working with its suppliers and factory partners to lower pricing and modify some of its products. The company has been working to move manufacturing out of China since 2018 due to previous tariffs imposed on imports, said Barrocas.
Management expects that tariff levels will include minimum rates of 10% for Indonesia, Malaysia and Cambodia and a recent increase from 10% to 12.5% for China, Vietnam and Thailand for the remainder of 2026 as the taxes “remained a real headwind” during the second quarter, Barrocas said during its earnings call.
Products generating higher sales volume
SharkNinja, a manufacturer of vacuums, air purifiers, blenders, air fryers, blow dryers and outdoor grills, reported net sales rose by 22.2% to $1.76 billion from its segments in cooking and beverage appliances, beauty and home environment appliances, food preparation appliances and cleaning appliances.
The company reported growth in its “largest, most established franchises like cleaning and blending” due to increased diversification and innovation, Barrocas said.
Domestic net sales rose by 15.5% to $153.4 million while the international business segment produced growth of 36.6% due to strong results across the U.K., Europe, and Latin America. The company’s products are currently in 38 markets and are sold to 180 retailers globally.
Shares of SharkNinja rose by 59% during the past year.
Net income fell by 7% to $129.8 million due to research and development expenses that rose by 22.3% to $109.3 million or 6.2% of net sales, compared to $89.4 million or 6.2% of net sales in the prior year quarter. Sales and marketing expenses also grew by 23.4% to $441.5 million or 25% of net sales, compared to $357.7 million or 24.8% of net sales in the prior year quarter.
The increases were due to hiring more employees to support new product categories and new market expansion, prototypes and testing costs and higher delivery and distribution costs driven by higher volumes, changes in product mix and higher fuel costs. The company’s creative and research and development teams bring about 25 new products to market each year across more than 40 categories spanning cleaning, kitchen and beauty, the company said.
Management increased its outlook for 2026 and estimates net sales to increase by 16% to 17% compared to the prior year from a prior expectation of 11.5% to 12.5% growth. The company is also anticipating a $247.1 million refund from tariffs that were approved by U.S. Customs and Border Protection.
While the company has many smaller competitors such as Dyson, iRobot and Instant Pot, most of these manufacturers operate on a much smaller scale. These rivals also specialize in only a few products such as Dyson’s vacuum cleaners and blow dryers and iRobot’s vacuum cleaners and mopping robots.
Social media platforms such as TikTok have driven higher sales and brought in younger customers, Barrocas said.
“Platforms like TikTok Shop aren’t just a place to sell our newest, most viral products, they’re becoming a front door for entirely new customers to discover our core products for the first time,” he said. “One of my favorite examples is cutlery, a category we’ve been in for almost 5 years. Our Ninja NeverDull Knife system has become a smash hit on TikTok Shop in the U.S. with this channel now in the top three for sales in the category.”
SharkNinja launched its TikTok Shop in seven countries compared to zero in the year ago period, Barrocas said. The goal is to double that number by the busy holiday season.
The variety of affordable consumer appliances produced by SharkNinja continues to appeal to shoppers who want faster and more efficient kitchen, beauty and cleaning products.
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