Scotts grows through the outbreak
Marysville, Ohio-based The Scotts Miracle-Gro Company has seen strong demand for garden products, and so have its big retailers.
For the week ending May 3, the company recorded its strongest seven-day period in company history with consumer purchases of more than $190 million at its largest four retail partners, a list that includes Home Depot and Lowe's.
For the fiscal second quarter ended May 3, the company reported sales of $1.38 billion, up 16 percent from $1.19 billion a year earlier. U.S. Consumer segment sales increased 11 percent to $1.10 billion. Sales for the Hawthorne segment increased 60 percent to $230.0 million.
Net income was down compared to the prior-year quarter, which benefited from a gain of $259.8 million with the divestiture of its minority ownership of TruGreen.
On a year-to-date basis through May 3, 2020, consumer purchases of the company’s core lawn and garden products at its largest four retailers in the U.S. increased 8 percent from the same period a year ago driven primarily by strong growth in gardening and insect control products. Entering April, year-to-date POS at those retailers was up 14 percent driven by an increase of more than 20 percent during the second quarter.
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Bottom line: Net income of $252.2 million is down from $396.4 million in the same quarter last year.
What the CEO said: ““Consumers and retailers have remained engaged in the lawn and garden category and supportive of our brands despite the challenges of the COVID-19 crisis,” said Jim Hagedorn, chairman and CEO. “During April, in the face of difficult year-over-year comparisons and shelter-in-place orders in much of the United States, consumer purchases remained strong.”
For more information: The company’s second-quarter earnings release is available here.
For the week ending May 3, the company recorded its strongest seven-day period in company history with consumer purchases of more than $190 million at its largest four retail partners, a list that includes Home Depot and Lowe's.
For the fiscal second quarter ended May 3, the company reported sales of $1.38 billion, up 16 percent from $1.19 billion a year earlier. U.S. Consumer segment sales increased 11 percent to $1.10 billion. Sales for the Hawthorne segment increased 60 percent to $230.0 million.
Net income was down compared to the prior-year quarter, which benefited from a gain of $259.8 million with the divestiture of its minority ownership of TruGreen.
On a year-to-date basis through May 3, 2020, consumer purchases of the company’s core lawn and garden products at its largest four retailers in the U.S. increased 8 percent from the same period a year ago driven primarily by strong growth in gardening and insect control products. Entering April, year-to-date POS at those retailers was up 14 percent driven by an increase of more than 20 percent during the second quarter.
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Bottom line: Net income of $252.2 million is down from $396.4 million in the same quarter last year.
What the CEO said: ““Consumers and retailers have remained engaged in the lawn and garden category and supportive of our brands despite the challenges of the COVID-19 crisis,” said Jim Hagedorn, chairman and CEO. “During April, in the face of difficult year-over-year comparisons and shelter-in-place orders in much of the United States, consumer purchases remained strong.”
For more information: The company’s second-quarter earnings release is available here.