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Q1 sales jump at Scotts

1/29/2020
Company-wide sales increased 23% at Marysville, Ohio-based Scotts Miracle-Gro Company, thanks partly to strong volume growth in its hydroponics-focused and cannabis-friendly Hawthorne segment.

The company reported sales of $365.8 million for the three months ended Dec. 28, compared to $298.1 million a year earlier.

The company’s first quarter loss narrowed to $71.4 million, compared to a first quarter loss of $79.6 million in the year ago period. Scotts typically posts a loss in first quarter, because October, November and December are tough months for lawn and garden in much of the country.

The Scotts Miracle-Gro Company
Q120 sales:     $365.8 million       Q120 net loss: $71.4 million
Q119 sales:      $298.1 million        Q119 net loss: $79.6 million
% change:        up 23%

Sales for the Hawthorne segment increased 41 percent to $198.8 million driven by strong demand in nearly all categories of indoor growing equipment and supplies.

“We continue to see outstanding performance across all product categories of our Hawthorne business in the United States, with double-digit growth in long-standing markets such as California and Colorado and even stronger performance in emerging markets like Michigan and Florida,” said Jim Hagedorn, chairman and chief executive officer. “Hawthorne continues to distance itself from its largest competitors as indoor growers see us as a complete solution for their needs.

U.S. Consumer segment sales increased 8 percent to $147.4 million from $136.9 million due to improved listing support with certain retail partners. One such example, the Memphis, Tenn.-based distribution giant Orgill recently signed up Scotts as a vendor for 2020, after years without the giant brand.

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The bottom line: The company says it always posts a net loss in the first quarter. This year’s net loss narrowed to $71.4 million.

What the CEO said: “The strong momentum we saw in our U.S. consumer segment last year also carried into fiscal 2020,” said Hagedorn. “We remain encouraged by the level of retailer engagement in all channels as we prepare for the upcoming lawn and garden season

Read more: Click here for the company’s Q1 earnings press release.
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