Collaboration will greatly expand GrowGen’s market reach for organic fertilizers, propagation systems, and sustainable growing media across Arett’s 32-state lawn & garden networkDENVER, Aug. 26, 2025 (GLOBE NEWSWIRE) -- GrowGeneration Corp. (NASDAQ: GRWG) (“GrowGen” or the “Company”), the nation’s largest specialty hydroponic and organic gardening retailer, today announced it is expanding its U.S. distribution through a new strategic partnership with Arett Sales, a leading national lawn, garden, and outdoor ...

Financial Data and Key Metrics Changes - The company reported net revenue of approximately $41 million for Q2 2025, exceeding guidance of $40 million and reflecting a decrease from $53.5 million in the same period last year [7][15] - Gross margins improved to 28.3% in Q2 2025, up from 26.9% in Q2 2024, driven by higher proprietary brand sales [9][17] - The net loss for Q2 2025 was $4.8 million, or negative $0.08 per share, an improvement from a net loss of $5.9 million, or negative $0.10 per share, in Q2 2024 [18] Business Line Data and Key Metrics Changes - Proprietary product sales accounted for nearly 32% of total revenue in Q2 2025, up from 21.5% in the same period last year, indicating a stronger focus on higher-margin products [8][15] - In the MMI storage solutions segment, revenue reached $8.1 million, up over 69% sequentially, reflecting strong demand and product diversification [12] Market Data and Key Metrics Changes - The company is expanding internationally, having signed a distribution agreement with V1 Solutions for commercial sales across the European Union and launched a proprietary product line in Costa Rica [11] - The company noted a significant backlog in durable goods, indicating a recovery in demand within the industry [40] Company Strategy and Development Direction - The company is focused on transforming into a leaner, more profitable, product-driven business with an emphasis on B2B customers [6] - The acquisition of Viagro is seen as a strategic move to enter the home gardening market and strengthen the proprietary brand portfolio [11][27] - The company aims to achieve gross margins in the 30% range and is actively working to mitigate tariff impacts through diversified sourcing and improved supply chain efficiency [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in the lawn and garden space and the positive impact of cannabis reform on the cultivation ecosystem [14][27] - The company is not providing full-year 2025 guidance due to uncertainties in global trade policy and cannabis reform but expects sequential revenue growth in Q3 2025 [20] Other Important Information - The company ended Q2 2025 with $48.7 million in cash and no debt, providing flexibility for working capital and growth initiatives [13][19] - The company is continuing to rationalize operations and expects further cost savings in the latter half of 2025 [20] Q&A Session Summary Question: Insights on the Viagro acquisition and opportunities in the gardening space - Management sees tremendous opportunity in the lawn and garden space with the Viagro acquisition, which brings strong relationships and products that can crossover into cannabis [27] Question: Future gross margin expectations amid tariff risks - Management aims for gross margins to reach the 30% range and is implementing strategies to mitigate tariff impacts while maintaining competitive pricing [30][33] Question: Status of expense reductions and future cuts - Management confirmed ongoing cost reductions and expects additional improvements in SG&A and operating expenses in the latter half of the year [38] Question: Industry outlook and capital investments - Management noted a significant backlog in durable goods and observed clients beginning to refurbish their portfolios, indicating a positive shift in industry dynamics [40] Question: Timeline for repositioning the business towards commercial focus - Management believes most internal needs are met and anticipates significant savings and growth opportunities by the end of Q4 2025 [46][48]

Core Insights - GrowGeneration Corp. reported net sales of $41.0 million for Q2 2025, reflecting a 14.7% increase sequentially but a decline from $53.5 million in Q2 2024 [4][6] - Proprietary brand sales accounted for 32.0% of total Cultivation and Gardening revenue, up from 21.5% in the same period last year, indicating strong brand performance [5][6] - The company achieved a gross profit margin of 28.3%, an improvement from 26.9% in Q2 2024, driven by higher private label penetration [7][6] Financial Performance - Net sales for the Cultivation and Gardening segment were $32.9 million, down from $46.1 million year-over-year due to fewer retail locations [4] - Storage Solutions segment net sales increased to $8.1 million from $7.4 million in the prior year [4] - Store operating expenses decreased by approximately 22.9% to $7.9 million compared to $10.2 million in Q2 2024 [8][6] Profitability Metrics - Gross profit was $11.6 million for Q2 2025, down from $14.4 million in Q2 2024, attributed to decreased sales volume [7] - The net loss narrowed to $4.8 million from a loss of $5.9 million in the same quarter last year [9][6] - Adjusted EBITDA loss was $1.3 million, slightly worse than a loss of $1.1 million in Q2 2024 [10][6] Strategic Initiatives - The company is focusing on a transformation strategy aimed at enhancing long-term profitability, including expanding its online B2B portal and entering the home gardening segment [3] - GrowGeneration established distribution partnerships in the European Union and Costa Rica, indicating international expansion efforts [3] - The company aims for proprietary brands to represent 35.0% of segment sales by year-end 2025 [3] Operational Footprint - As of June 30, 2025, GrowGeneration operated 29 retail locations across 11 states, with a total retail and warehouse space of 709,000 square feet [11] - The company closed two retail locations as part of its network optimization strategy [11] Future Outlook - For Q3 2025, the company expects total consolidated net sales to exceed $41 million, indicating continued sequential growth [13] - Due to macroeconomic uncertainties, the company is not providing a full-year 2025 financial outlook at this time [12]

Core Insights - GrowGeneration Corp. is the largest specialty retailer of hydroponic and organic gardening products in the U.S. and will showcase innovations at Cultivate'25 from July 12-15, 2025 [1][2] Company Overview - GrowGeneration offers a wide range of products including nutrients, additives, growing media, lighting, and environmental control systems, featuring proprietary brands like Charcoir, Drip Hydro, and The Harvest Company [6] Event Participation - At Cultivate'25, GrowGeneration will present its proprietary portfolio of cultivation products and services tailored for modern greenhouse, nursery, and commercial growing operations [2][3] Product Innovations - The company will highlight new and proven products from its brands, including Viagrow, Charcoir, Drip Hydro, and Ion lights, emphasizing its commitment to innovation and performance [3][5] Expansion Strategy - GrowGeneration is expanding into the lawn, garden, and nursery sectors through The Harvest Company and Viagrow, providing scalable, retail-ready solutions for growers nationwide [3]

Core Insights - GrowGeneration Corp. has entered into a distribution agreement with V1 Solutions to expand its market presence in the European Union and Costa Rica, targeting the growing demand for hydroponic and organic gardening products [1][2][4] Group 1: EU Expansion - The partnership with V1 Solutions will leverage their strategic relationships with commercial cultivators in Europe, allowing GrowGen to meet the increasing demand for advanced cultivation products as cannabis regulations evolve [2][4] - Target markets in the EU include Germany, Portugal, Malta, Luxembourg, the Netherlands, Czech Republic, Greece, and Macedonia, all of which are experiencing significant cannabis cultivation developments [7] Group 2: Central America Expansion - GrowGen has launched its proprietary brands in Costa Rica, which has issued over 50 licenses for hemp and cannabis production in the past year, positioning it as a key growth market in Central America [3][4] - The favorable growing conditions and developing export infrastructure in Costa Rica enhance its potential for cannabis cultivation [3] Group 3: Product Offerings - GrowGen will supply its proprietary brands, including Drip Hydro, Char Coir, Ion Lighting, Power Si, and The Harvest Company, to commercial cultivators, garden centers, and licensed operators in the targeted regions [2][4] Group 4: International Strategy - The company is exploring additional markets in Eastern Europe and Latin America, aiming to serve high-growth regions through local partnerships and product education [4] - GrowGeneration's international sales infrastructure and regulatory expertise position it well to capitalize on the cannabis cultivation boom in regions with advancing legalization [4]

Core Insights - GrowGeneration Corp. is the largest specialty retailer of hydroponic and organic gardening products in the United States [3] Group 1: Company Participation in Events - GrowGeneration's CEO Darren Lampert, President Michael Salaman, CFO Greg Sanders, and VP of Sales Matthew Koch will participate in the Benzinga Cannabis Capital Conference from June 8-10, 2025, in Chicago [1] - Lampert and Koch will engage in a panel discussion titled "Can the Sun Compete with the Socket? Greenhouse vs Indoor in the Fight for Premium Pricing" on June 10, 2025, at 4:20 p.m. Central Time [2] - The company will host one-on-one meetings during the conference for interested parties [2] Group 2: Company Overview - GrowGeneration offers a wide range of products including nutrients, additives, growing media, lighting, environmental control systems, and proprietary brands such as Charcoir, Drip Hydro, and Power Si [3] - The company operates an online superstore for cultivators at growgeneration.com and has a wholesale business for resellers, as well as a benching, racking, and storage solutions business called Mobile Media or MMI [3]

Financial Data and Key Metrics Changes - The company reported first quarter net revenue of $35.7 million, down from $47.9 million in the prior year, reflecting the impact of 19 fewer retail locations [14][15] - Gross profit margin improved to 27.2%, up from 25.8% year over year, indicating a stronger product mix and improved procurement execution [10][16] - The net loss for the first quarter was $9.4 million, or negative $0.16 per share, compared to a net loss of $8.8 million, or negative $0.14 per share, in the same period last year [18] Business Line Data and Key Metrics Changes - Net sales in the cultivation and gardening segment were $30.9 million, down from $43.1 million year over year [15] - Proprietary brand sales accounted for 32% of cultivation and gardening sales, up from 22.6% in the prior year, reflecting increased brand penetration [9][16] - The storage solutions segment remained flat year over year at $4.8 million in revenue, facing some margin pressure [11][16] Market Data and Key Metrics Changes - The company experienced softness in durables and consumable demand due to regulatory and tariff concerns, particularly noted in March [6][12] - The company anticipates revenue in excess of $40 million for the second quarter, while withdrawing full-year guidance due to macroeconomic uncertainties [13][19] Company Strategy and Development Direction - The company is transitioning from a legacy retail model to a more agile fulfillment-centric model, repurposing former stores into regional fulfillment centers [7][10] - The launch of the GrowGen Pro portal aims to migrate commercial transactions from brick-and-mortar stores to a digital platform, enhancing operational efficiencies [9][10] - The focus is on transforming GrowGen into a high-margin product-centric commercial business powered by a digital platform and a simplified physical footprint [14] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic challenges and tariff-related uncertainties impacting consumer behavior and demand [12][19] - The company remains committed to achieving profitability and is focused on expanding margins, controlling costs, and exploring growth opportunities [20][21] Other Important Information - The company ended the quarter with $52.6 million in total liquidity and no debt, providing flexibility for operations and potential acquisitions [11][19] - The company is actively managing costs and pricing strategies to protect margins in the storage solutions segment while diversifying product offerings [11][12] Q&A Session Summary Question: Insights on tariffs and proprietary products - Less than 10% of proprietary brands come from China, with products sourced from India and Mexico [25][26] Question: Potential for store closures - Store closures will likely be spread out, with half coinciding with lease expirations [30][31] Question: Incremental distribution opportunities for proprietary brands - The company is exploring distribution outside the U.S. and working with large stores for distribution [36][38] Question: Positioning proprietary brands amid cannabis challenges - The company has a strong commercial team conducting extensive trials to encourage product adoption [40][41] Question: Consumer pressures and macro environment impact - There is significant weakness in the cannabis industry, particularly affecting durable goods, while consumables remain strong [50][51] Question: Capital position and acquisitions - The company maintains a strong cash position and is actively looking for acquisitions that are accretive to shareholders [57][58]

Financial Data and Key Metrics Changes - The company reported first quarter net revenue of $35.7 million, down from $47.9 million in the same period last year, reflecting the impact of 19 fewer retail locations [13][14] - Gross profit margin improved to 27.2%, up from 25.8% year-over-year, indicating a 140 basis point improvement primarily due to increased proprietary brand penetration [14][15] - The net loss for the first quarter was $9.4 million, or negative $0.16 per share, compared to a net loss of $8.8 million, or negative $0.14 per share, in the prior year [17] Business Line Data and Key Metrics Changes - Net sales in the cultivation and gardening segment were $30.9 million, down from $43.1 million year-over-year [13] - Proprietary brand sales accounted for 32% of cultivation and gardening sales, up from 22.6% in the previous year, reflecting strong growth in proprietary products [14][8] - The storage solutions segment remained flat year-over-year at $4.8 million in revenue, facing some margin pressure [10] Market Data and Key Metrics Changes - The company experienced softness in durables and consumable demand due to regulatory and tariff concerns, particularly noted in March [6] - The company anticipates revenue in excess of $40 million for the second quarter of 2025, while withdrawing full-year guidance due to macroeconomic uncertainties [12][18] Company Strategy and Development Direction - The company is transitioning from a legacy retail model to a more agile fulfillment-centric model, repurposing former stores into regional fulfillment centers [7] - The launch of the GrowGen Pro portal aims to migrate more commercial transactions from brick-and-mortar stores to a digital platform, enhancing operational efficiencies [9] - The focus is on transforming GrowGen into a high-margin product-centric commercial business powered by a digital platform and a simplified physical footprint [13] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing volatility in the market due to tariff-related uncertainties but expressed confidence in the company's ability to return to profitability [11][19] - The company is actively managing costs and exploring tuck-in acquisitions aligned with its brand portfolio, maintaining a strong liquidity position with $52.6 million in cash and no debt [10][18] - Management emphasized the importance of proprietary brand penetration and servicing commercial customers as key to future growth [30] Other Important Information - The company incurred approximately $1.1 million in restructuring costs during the first quarter, impacting operating expenses [16] - The company is evaluating the closure of an additional 10 stores to streamline operations and strengthen margin performance [12] Q&A Session Summary Question: Insights on tariffs and proprietary products - Management indicated that less than 10% of proprietary brands come from China, with efforts to diversify sourcing and negotiate pricing with vendors [24][25] Question: Potential for store closures - Management expects store closures to be spread out, primarily aligned with lease expirations, as consumer traffic has decreased significantly [29][30] Question: Incremental distribution opportunities for proprietary brands - Management highlighted efforts to expand distribution outside the U.S. and work with large stores for distribution, despite store closures [35][36] Question: Consumer pressures and market conditions - Management noted significant weakness in the cannabis industry, particularly in durable goods, while consumables remain strong [48][49] Question: Capital position and future acquisitions - Management emphasized the importance of maintaining capital on the balance sheet while actively seeking acquisitions that are accretive to shareholders [55][56]