GrowGeneration (GRWG) - Get Report shares rose on Monday after the Denver provider of hydroponic and specialty organic garden products estimated that fourth-quarter and full-year 2020 revenue more than doubled.
Full-year revenue reached $192 million from $80 million in 2019, the company estimated. Fourth-quarter revenue leaped to $61.5 million in 2020 from $25.4 million in 2019.
Same-store sales jumped 63% for the full year and 58% for the fourth quarter, both from a year earlier.
GrowGeneration’s shares recently traded at $50.80, up 12%. They are up by a factor of more than 10 over the past year.
The company added 14 new and acquired store locations in 2020, increasing locations nationwide to 39 in 11 states. This year it expects to increase that number to 55.
The revenue performance “came through strategic acquisitions of best-in-class hydroponic stores, exceptional same-store sales growth, and the expansion of our omnichannel and private-label offerings – a strategy we will accelerate this year," Chief Executive Darren Lampert said in a statement.
"We expect significant revenue growth in the year ahead as we continue to execute on these initiatives.
"Accordingly, we have raised our 2021 revenue guidance to $335 [million] to $350 million [and] 2021 adjusted-Ebitda guidance to $38 million to $40 million."
In August, Oppenheimer boosted its price target on GrowGeneration to $25 from $15, keeping its outperform rating. Stifel initiated coverage with a buy rating and $22 price target.
Oppenheimer analyst Brian Nagel said in a note to clients that GrowGeneration is a leading, yet still up-and-coming, retail chain in the rapidly expanding market for hydroponic and organic gardening supplies.