Scotts Miracle-Gro. Co.
SMG,
said Wednesday its first-quarter loss widened to $64.7 million, or $1.17 a share, from a loss of $50 million, or 90 cents a share in the year-ago quarter. The lawn and cannabis growing products company’s adjusted loss widened to $1.02 a share from 88 cents a share in the year-ago period. Revenue fell 7% to $526.6 million. Analysts expected Scotts Miracle-Gro to lose $1.34 a share on revenue of $502.4 million, according to estimates compiled by FactSet. Scotts Miracle-Gro said it’s targeting $185 million in annualized savings for an initiative called project springboard. The company also reported record December shipments in its U.S. Consumer business that “contributed to a strong early season buildout demonstrating confidence in the lawn and garden season.” First-quarter sales in its Hawthorne cannabis growing product unit fell 31% to $131.5 million, compared with $190.6 million, due to “challenges” in the industry, the company said. Looking ahead, Scotts Miracle-Gro is projecting 20% to 30% lower sales for Hawthorne in fiscal 2023. Shares of Scotts Miracle-Gro are up 48.6% in 2023, compared to a 10.7% rise by the Nasdaq.
