The Scotts Miracle-Gro Company (SMG) reported a narrower net loss for the fiscal fourth quarter of 2024, as its turnaround efforts led to higher sales and improved profitability in its core consumer lawn and garden business.
For the three months ended September 30, 2024, the company posted a net loss of $244 million, or $4.29 per share, compared to a loss of $468.4 million, or $8.33 per share, in the same period a year ago. On an adjusted basis, the company reported a loss of $2.31 per share, while analysts had expected a loss of $1.97 per share.
Total net sales for the quarter rose 11% year-over-year to $414.7 million, beating analysts' estimates of $399.8 million. This growth was primarily driven by a 54% surge in sales in the U.S. Consumer segment to $309.7 million, benefiting from normalized shipment timing compared to the prior year period.
However, sales in the Hawthorne segment, which caters to the cannabis industry, declined 46% to $80.5 million, reflecting the company's exit from the distribution of third-party brands and lower sales in its professional horticultural lighting business.
Scotts Miracle-Gro's adjusted gross margin rate improved to negative 3.1% from negative 8.8% in the prior-year quarter, mainly driven by fixed-cost leverage from higher sales volumes and cost-cutting measures. However, the company also recorded $29 million in charges related to inventory write-downs associated with the wind-down of its AeroGarden indoor growing unit business.
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