"Retailers continued to build healthy inventories, and our increased investments in promotional activity, media and marketing drove consumer takeaway across our leading brands. The operational restructuring within Hawthorne yielded significant benefits as well, enabling it to contribute positively to adjusted EBITDA during the quarter. These initial results reaffirm our confidence in this year's guidance and demonstrate continued progress toward our mid-term growth plan that includes EBITDA approaching $700 ...

U.S. Consumer net sales increased 11 percent driven by strong fall lawn and garden campaign and retailer support for 2025 spring season Consumer POS, which represents less than 10 percent of the full-year, was up 12 percent in dollars and 13 percent in unitsGAAP gross margin rate of 22.7 percent improved 750 bps; Non-GAAP adjusted gross margin rate of 24.0 percent improved 1,030 bpsNon-GAAP Adjusted EBITDA of $4 million reflected $30 million improvementGAAP loss of $1.21 per share and non-GAAP adjusted loss ...

Core Insights - The Scotts Miracle-Gro Company reported a solid start to the fiscal year, driven by strong performance in its U.S. Consumer business, with year-over-year improvements in shipments and point-of-sale (POS) metrics [2][3] - The company reaffirmed its confidence in its guidance for the year, aiming for adjusted EBITDA approaching $700 million by the end of fiscal 2027 [3] Financial Performance - For the first quarter ended December 28, 2024, total sales were $416.8 million, a slight increase from $410.4 million in the prior year [4] - U.S. Consumer net sales rose 11% to $340.9 million, up from $306.7 million, attributed to a strong fall season and early retailer load-in for spring [5][8] - The Hawthorne segment saw a 35% decline in sales to $52.1 million, down from $80.1 million, due to a strategic exit from third-party distribution [5][24] - GAAP gross margin improved to 22.7%, up from 15.2% in the prior year, while non-GAAP adjusted gross margin increased to 24.0% from 13.7% [6][8] - Selling, general and administrative (SG&A) expenses increased by 9% to $124.8 million, reflecting investments in marketing and innovation [7] Key Metrics - Non-GAAP adjusted EBITDA for the quarter was $3.8 million, a significant improvement from a loss of $25.8 million a year ago [10][23] - The company reported a GAAP net loss of $69.5 million, or $1.21 per share, compared to a loss of $80.5 million, or $1.42 per share, in the prior year [11][22] - Interest expense decreased by 21% to $33.7 million, with expectations for a full-year reduction of $15 million to $20 million compared to the previous year [9] Segment Performance - U.S. Consumer segment profit improved to $10.0 million from a loss of $15.5 million, while Hawthorne segment profit rose to $1.7 million from a loss of $9.7 million [26] - The Other segment reported a slight increase in sales to $23.8 million, up from $23.6 million [26] Balance Sheet and Outlook - The average net debt to adjusted EBITDA leverage ratio improved to 4.52 times, down from 4.86 times in the previous quarter [13] - The company reaffirmed its fiscal 2025 guidance for non-GAAP adjusted EBITDA and lowered expected interest expense [14][16]

MARYSVILLE, Ohio, Jan. 16, 2025 (GLOBE NEWSWIRE) -- To connect more children to gardens and outdoor play, The Scotts Miracle-Gro Foundation opened its GroMoreGood Grassroots Grants with national nonprofit KidsGardening. The grant application is open to a variety of organizations, serving at least 15 youth, that are planning to use the funds to install new or improve existing youth gardens or greenspaces. "Gardening offers kids more than just the chance to get their hands dirty—it’s an opportunity to connec ...

MARYSVILLE, Ohio, Jan. 16, 2025 (GLOBE NEWSWIRE) -- To connect more children to gardens and outdoor play, The Scotts Miracle-Gro Foundation opened its GroMoreGood Grassroots Grants with national nonprofit KidsGardening. The grant application is open to a variety of organizations, serving at least 15 youth, that are planning to use the funds to install new or improve existing youth gardens or greenspaces. "Gardening offers kids more than just the chance to get their hands dirty—it's an opportunity to connec ...

MARYSVILLE, Ohio, Jan. 15, 2025 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE:SMG), the world's leading marketer of branded consumer lawn and garden as well as indoor and hydroponic growing products, will release its first quarter financial results on Wednesday, January 29, 2025, prior to the opening of the U.S. financial markets. The Company will host a video presentation via webcast at 9:00 a.m. ET to discuss those results. The webcast will be followed by an audio question-and-answer session. T ...

The Scotts Miracle-Gro Company (SMG) reported a fourth-quarter fiscal 2024 (ended Sept. 30, 2024) loss of $244 million or $4.29 per share compared with a loss of $468.4 million or $8.33 per share in the year-ago quarter. Barring one-time items, the adjusted loss was $2.31 per share, narrower than a loss of $2.77 a year ago. The figure was wider than the Zacks Consensus Estimate of a loss of $1.94.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales rose 10.7% year over year to $4 ...

Financial Data and Key Metrics Changes - In fiscal '24, the company achieved adjusted EBITDA growth of 20%, finishing at $539 million, despite a challenging lawn and garden market [10][35] - Total company net sales increased 11% for the quarter, with full-year sales essentially flat at $3.55 billion [32] - Full-year adjusted earnings per share improved nearly 90% to $2.29 versus $1.21 in fiscal '23 [36] Business Line Data and Key Metrics Changes - U.S. consumer sales increased 54% in the fourth quarter, driven by timing of shipments and fall load-in to retailers, with full-year sales ending 6% higher than the prior year [32][33] - At Hawthorne, sales declined 46% in the fourth quarter and 37% for the full year, aligning with the decision to exit third-party distribution [34] Market Data and Key Metrics Changes - Retailer inventories are in a good place, with POS units up about 10% for the fiscal year, driven by gardens and controls [32] - POS units across the portfolio were up nearly 9% in fiscal '24 [10] Company Strategy and Development Direction - The company aims for consistent growth averaging 3% annually, with a focus on brand investment and margin improvement [8] - A strategic pivot was made in Hawthorne to focus on profitable owned brands, resulting in consecutive quarters of positive EBITDA for the first time in two years [12] - The company plans to invest over $200 million annually in advertising and marketing to support growth [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in consumer sentiment and pricing pressures but expressed confidence in achieving growth through strategic investments and operational efficiencies [15][20] - The company expects EBITDA of $570 million to $590 million in fiscal '25, representing a 6% to 9% increase over fiscal '24 [20][41] Other Important Information - The decision to discontinue AeroGarden was made due to its lack of profitability, allowing the company to focus on more strategic investments [18] - The company generated over $580 million in free cash flow in fiscal '24, contributing to debt reduction of $390 million [37] Q&A Session Summary Question: Clarification on top-line guidance for U.S. consumer business - Management indicated that one-time items, including AeroGarden sales and inventory balancing, will not repeat, but core branded products are expected to see low single-digit growth [45][46] Question: Clarification on EBITDA target - Management confirmed the goal of $700 million in EBITDA by fiscal '27, with a focus on reducing leverage to approximately 3x [50][51] Question: Margin expansion challenges - Management acknowledged that while pricing may be less of a component for margin recovery, other drivers such as innovation and cost reductions will be pursued [54][55] Question: Incremental investment allocation - The majority of the increased investment will go towards brand support, with a smaller portion allocated to building midterm capacity [63][65]

Scotts Miracle-Gro (SMG) reported $414.7 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 10.7%. EPS of -$2.31 for the same period compares to -$2.77 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $392.95 million, representing a surprise of +5.54%. The company delivered an EPS surprise of -19.07%, with the consensus EPS estimate being -$1.94.While investors scrutinize revenue and earnings changes year-over-year and how they compa ...

Wall Street analysts forecast that Scotts Miracle-Gro (SMG) will report quarterly loss of $1.94 per share in its upcoming release, pointing to a year-over-year increase of 30%. It is anticipated that revenues will amount to $392.95 million, exhibiting an increase of 4.9% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.A ...