GrowGeneration Earnings Miss Estimates in Q3, Revenues Dip Y/Y

Core Insights - GrowGeneration Corp. reported a loss per share of 19 cents in Q3 2024, which is wider than the Zacks Consensus Estimate of a loss of 11 cents and compared to a loss of 12 cents in Q3 2023 [1] - The company generated revenues of $50 million in Q3 2024, a decline of 10.1% year over year due to 25 fewer retail locations, but exceeded the consensus estimate of $48.9 million [1] - Comparable store sales improved by 12.5% year over year in the quarter [1] Financial Performance - Cost of sales decreased by 0.5% year over year to $39 million, while gross profit fell by 32.9% to $11 million, resulting in a gross margin of 21.6%, down from 29.1% in the prior year [3] - Selling, general and administrative expenses declined by 2.4% to $7.4 million, and total operating expenses fell by 5.4% year over year to $23 million [4] - Adjusted EBITDA was negative $2.4 million in Q3 2024, compared to negative $0.9 million in the prior year [4] Cash Position - At the end of Q3 2024, the company had cash and cash equivalents of $27 million, down from $30 million at the end of 2023 [5] - Inventory stood at $48 million, with prepaid inventory and other current assets totaling $7.7 million [5] - Total current liabilities were $24.5 million at the quarter's end [5] Guidance - The company expects revenues to be between $190 million and $195 million for the full year 2024 [6] Stock Performance - Over the past year, GrowGeneration shares have decreased by 20.8%, while the industry has seen a growth of 2.9% [7]