Scotts Miracle-Gro (SMG) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a c ...

Breaking news. It hasn't even been two hours since President Trump signed an executive order reclassifying marijuana. And the pot adjacent play, Scott's Miracle Grow, is making news regarding its Hawthorne subsidiary that sells cannabis growing supplies such as light systems and plant nutrients to marijuana growers.Scots talking about its plan to combine that subsidiary with a dedicated Pure Play cannabis company next year. Well, right there in the room, Scott's Miracle Grow CEO Jim Hagadorn was with the pr ...

MARYSVILLE, Ohio, Dec. 18, 2025 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, today expressed support for President Trump’s executive order to reschedule cannabis from a Schedule I to Schedule III drug. “With 39 states already legalizing cannabis in some form, rescheduling to a lower level drug on the federal level has been long overdue,” said Chairman and CEO Jim Hagedorn. “President Trump deserves credit ...

CEO says move enhances company’s broader growth strategyMARYSVILLE, Ohio, Dec. 18, 2025 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, today expressed support for President Trump’s executive order to reschedule cannabis from a Schedule I to Schedule III drug. “With 39 states already legalizing cannabis in some form, rescheduling to a lower level drug on the federal level has been long overdue,” said Chairman ...

PresentationJoseph AltobelloRaymond James & Associates, Inc., Research Division Good afternoon, everybody, and thank you for joining us. I'm Joe Altobello, leisure analyst here at Raymond James. And I'm very pleased to have with me today senior management from The Scotts Miracle-Gro, including President and COO, Nate Baxter; and CFO, Mark Scheiwer. Welcome, gentlemen. I'm sure most people in this room are at least somewhat familiar with Scotts as the company is the leader in the consumer lawn and garden spa ...

Summary of Scotts Miracle-Gro Conference Call (December 09, 2025) Company Overview - **Company**: Scotts Miracle-Gro (NYSE: SMG) - **Industry**: Consumer Lawn and Garden Products, Hydroponics Key Points U.S. Consumer Business Performance - The U.S. consumer business experienced a cumulative sales growth of approximately 6%-7% over fiscal years 2024 and 2025, translating to an annual growth rate of about 3%-3.5% [2][4] - Recent volatility in sales is attributed to post-COVID adjustments, inventory management, and a shift in sales phasing from 60% in the first half to 55% in the past year [3][4] - Retailer inventories are reported to be healthy, supporting future growth initiatives [4] Future Growth Projections - The company anticipates annual sales growth of at least 3% moving forward, with historical growth rates averaging between 3% to 5% over a decade [5][6] - Innovation, e-commerce expansion, and strategic pricing are identified as key growth drivers [6][17] E-commerce and Market Trends - E-commerce sales currently account for about 10% of total POS sales, up from less than 2% five years ago, with expectations for continued double-digit growth [34] - The company is focusing on expanding its presence in the e-commerce space, particularly through partnerships with major retailers [20][34] Product Strategy and Market Share - The company gained four points of market share in fiscal year 2024 and netted one point in the following year, indicating resilience against private label competition [31][32] - The strategy includes moving away from low-margin commodity products towards branded offerings, with expectations for mid-single-digit growth in branded products [9][32] Gross Margin Recovery - Gross margins fell from mid-30s to below 24% due to COVID-related buildouts and increased fixed costs, but are projected to recover to 31% by the end of 2025, with a goal of reaching mid-30s in the future [44][48] - Key drivers for margin recovery include pricing strategies, cost savings initiatives, and investments in automation and technology [49][50] Consumer Engagement and Education - The company aims to increase household penetration in lawn care, currently at about 11%, by focusing on education and frequency of product use [26][27] - There is a strategic shift towards promoting multi-step lawn care programs to enhance consumer engagement [28][30] Innovation and M&A Strategy - The innovation pipeline is expected to contribute significantly to future growth, with plans for small tuck-in acquisitions to enhance product offerings [17][18] - The company is exploring opportunities in adjacent categories, particularly in pest control and gardening, to expand its market presence [22][23] Demographic Focus - A dedicated team is being formed to engage with the Hispanic demographic, recognizing its growing importance in the consumer base [21][22] Conclusion - Scotts Miracle-Gro is positioning itself for consistent growth through strategic innovation, e-commerce expansion, and a focus on branded products while navigating the challenges of post-COVID market dynamics and improving gross margins [10][50]

Core Insights - Scotts Miracle-Gro Company is a leading marketer of branded consumer lawn and garden products in North America, with approximately $3.4 billion in sales [3] Group 1: Company Announcement - Nate Baxter, president and chief operating officer, and Mark Scheiwer, chief financial officer and chief accounting officer, will participate in a fireside chat at the Raymond James 2025 TMT & Consumer Conference on December 9, 2025, at 2:20 p.m. ET [1] - Investors can listen to a live webcast of the presentation and fireside chat from the Company's investor relations website, with an archive available for at least 90 days [2] Group 2: Company Overview - Scotts Miracle-Gro's brands, including Scotts®, Miracle-Gro®, Ortho®, and Tomcat®, are among the most recognized and market-leading in their categories within the lawn and garden industry [3]

Core Insights - Scott's Miracle Grow is focusing on balancing innovation with sustainability while modernizing its legacy brands to attract younger consumers, particularly millennials and Gen Z [1][2][3] - The company reported a loss in its latest earnings, but positive EBIT and a significant margin recovery of almost 500 basis points over the past year, indicating operational improvements [1][2] - The decision to exit the cannabis business through its Hawthorne subsidiary is driven by a challenging market environment, with plans to find a partner outside the company [3][4] Financial Performance - The company experienced a loss in Q4, which is typical due to its seasonal business model, with profits primarily generated in fiscal Q2 and Q3 [1][2] - Free cash flow for the most recent period was just under $275 million, with a focus on deleveraging and reducing historical debt levels [13][15] - The company aims for $150 million in supply chain cost savings over three years, with a significant portion driven by technology improvements in demand planning and forecasting [4][5] Consumer Engagement and Target Demographics - The company is targeting two main demographics: older consumers (baby boomers and Gen X) focused on traditional lawn aesthetics, and younger consumers (millennials and Gen Z) who prioritize health, wellness, and creating engaging outdoor spaces [2][3] - Younger consumers are increasingly interested in indoor gardening and sustainable practices, leading the company to adapt its messaging and marketing strategies to resonate with this audience [2][3][4] - The company recognizes the need for authenticity in its branding and is shifting its marketing efforts towards digital platforms to better engage younger consumers [2][3] Product Development and Sustainability - Scott's Miracle Grow is committed to increasing the proportion of natural and organic products, with a goal of having at least 25% of its point-of-sale offerings be natural or organic within the next three to four years [3][4] - The company is exploring partnerships and research into biological solutions to reduce reliance on synthetic chemicals, aiming for a more sustainable product line [3][4] - Modernization efforts include updating packaging aesthetics to appeal to younger consumers and developing products tailored to regional needs, particularly in areas with different climate challenges [3][4][12] Strategic Focus and Future Plans - The company is prioritizing its core lawn and garden business while considering small tuck-in acquisitions to enhance its brand portfolio [15][16] - There is an emphasis on improving e-commerce presence, with plans to launch a new website that is more engaging and educational for consumers [3][4] - The management is open to exploring larger transformational opportunities in the lawn and garden sector, while maintaining a cautious approach to capital allocation [20][21]

Company Overview - Scotts Miracle-Gro is the leading marketer of branded consumer lawn and garden products in North America, with key brands including Scotts, Miracle-Gro, Ortho, and Tomcat[13]. - The company reported research and development spending of $34.8 million in fiscal 2025, slightly down from $35.7 million in fiscal 2023[30]. - More than 75% of annual net sales for the North America consumer lawn and garden business occur in the second and third fiscal quarters combined[24]. - The Home Depot and Lowe's are the two largest customers, each representing more than 10% of reported consolidated net sales[25]. - There were no material acquisitions or divestitures during fiscal 2025 or fiscal 2024[18]. - The company has an exclusive marketing agreement with Monsanto for certain consumer Roundup branded products in the U.S.[30]. - The company maintains a competitive edge through a robust portfolio of trademarks, patents, and trade secrets[23]. - The company utilizes third parties to manage key distribution centers strategically located across the U.S. and Canada[20]. Financial Performance and Risks - The company is subject to market risks due to fluctuating prices of raw materials, including urea and other fertilizer inputs[22]. - A change in the variable interest rate of 100 basis points for a full twelve-month period would impact interest expense by $5.3, assuming average unhedged variable interest rate borrowing levels of $525.0 during fiscal 2025[359]. - The company is exposed to market risks from fluctuations in foreign currency exchange rates and prices of raw materials such as urea and natural gas[361]. - The company has a total long-term fixed rate debt of $1,600.0 million with an average interest rate of 4.4%[360]. - Variable rate debt amounts to $625.0 million, with an average interest rate of 7.5%[360]. - The average interest rate for fixed rate debt in 2025 is projected to be 5.3%[360]. - The company has a total long-term variable rate debt of $500.0 million with an average interest rate of 6.0%[360]. - The company’s total long-term debt, including fixed and variable rates, is $2,225.0 million[360]. - Interest rate derivatives, specifically interest rate swaps, resulted in a total loss of $4.4 million with an average rate of 3.9%[362]. - Interest rate swaps have shown a consistent loss across multiple periods, indicating potential volatility in interest expenses[362]. - The company is actively managing market risks through derivative instruments as outlined in their financial statements[361]. Environmental and Social Responsibility - As of September 30, 2025, the company accrued $3.1 million for environmental matters, with expenses of $0.5 million, $0.1 million, and $0.4 million for fiscal 2025, 2024, and 2023 respectively[39]. - The company’s Environmental Health and Safety system incorporates developed industry guidelines to address associate health and safety[55]. - The company’s ESG Steering Committee meets quarterly to review progress and set new program goals related to sustainability[58]. - The company published its annual Corporate Responsibility Report in fiscal 2025, prepared in reference to the Global Reporting Initiative Standards[60]. - The company’s extended producer responsibility programs include targets for post-consumer recycling usage and compostable packaging[35]. Workforce and Employee Benefits - The company employed approximately 5,200 associates as of September 30, 2025, with a peak workforce of about 6,900 during fiscal 2025[42]. - The company offers a 7.5% match on 401(k) contributions and allows associates to purchase common shares at a 15% discount through its stock purchase plan[54]. Regulatory Matters - The company is subject to various regulatory proceedings, none of which are expected to be material to its business[39].

Core Points - Starting in 2026, the Columbus Crew's stadium will be named ScottsMiracle-Gro Field, marking an expansion of the partnership between the Crew and ScottsMiracle-Gro Company, which has lasted over 15 years [1][2][3] Group 1: Partnership Details - The multi-year agreement includes stadium naming rights and aims to enhance community initiatives, particularly focusing on youth soccer and outdoor activities [3][7] - ScottsMiracle-Gro has been the Official Lawn Care & Gardening Partner for the Crew, providing products for maintaining the natural grass playing surfaces and supporting community programs [3][11] Group 2: Stadium and Events - The Crew's downtown stadium, opened in 2021, has hosted a record streak of 35 MLS regular season matches with capacity crowds from 2023 to 2025 [4] - The stadium will also host major soccer events, including the 2024 MLS All-Star Game and multiple U.S. Men's National Team matches, alongside private events throughout the year [5] Group 3: Community Engagement - The partnership will include the "Soccer in Schools" program, which aims to inspire youth participation in soccer and promote healthy habits [8] - The program provides educational resources to local school districts and aligns with physical education standards [8]