Scotts Miracle-Gro's Cannabis-Focused Subsidiary Reports 28% YoY Drop In Q3 Net Sales, Reaffirms 2024 Outlook
Portfolio Pulse from Jelena Martinovic
Scotts Miracle-Gro Company (NYSE: SMG) reported a 28% YoY drop in Q3 net sales for its cannabis-focused subsidiary, Hawthorne Gardening Company, largely due to the discontinuation of its third-party distributed brands business. Despite this, Hawthorne achieved its first profitable quarter since Q3 2022. Overall, Scotts Miracle-Gro saw a 7% increase in total company sales and reaffirmed its fiscal 2024 outlook, except for Hawthorne's net sales, which are expected to be 35-40% lower than the prior year.
July 31, 2024 | 4:27 pm
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Scotts Miracle-Gro reported mixed results with a significant drop in net sales for its cannabis subsidiary but overall growth in total company sales. The reaffirmation of fiscal 2024 outlook, despite challenges, indicates stability.
The overall positive performance of Scotts Miracle-Gro, with a 7% increase in total sales and reaffirmation of fiscal 2024 outlook, outweighs the decline in its cannabis subsidiary. This is likely to have a positive short-term impact on the stock price.
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