While SharkNinja's stock popped out of the gate on Monday, the stock sold off the rest of the week, falling below its debut price.
Since 2020, the company has paid out over $3.3 billion to JS Global subsidiaries to obtain the merchandise and goods, mostly made in China, that it sells to American consumers, and to provide "certain procurement and quality control services." That arrangement will keep going even with SharkNinja's independence.SharkNinja said it paid out a $375 million "special cash dividend" to JS Global for the repayment of debt.
Then there's the tariff risk. SharkNinja was granted a tariff exemption, which applies to certain goods sent from China to U.S. consumers. That exemption may not necessarily be extended to SharkNinja again, the company warned, creating a "a substantial increase in costs." In competing for U.S. customers with brands like Breville and iRobot, SharkNinja has focused heavily on marketing. It's also run afoul of U.S. intellectual property rules. In March, the International Trade Commission ruled in favor of iRobot, after the company allegedIn its investor pitch deck, SharkNinja touted its product design and technology teams, which it says are spread across the world, including in China. But volatile China-U.S.
"There are no existing long-term manufacturing contracts on which we are substantially dependent and most of our products are dual-sourced,""This diversification allows our supply chain to remain highly competitive and adaptive to evolving market and economic conditions." With respect to intellectual property issues, the spokesperson said, "we have the utmost respect for IP."
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