ScottsMiracle-Gro Announces Third Quarter Results Led By Strong Sales Growth In U.S. Core And Hawthorne Gardening Company

  • U.S. Consumer sales increase 5% in Q3; segment profit increases 20%
  • 'Other' segment sales increase 36% driven by acquisitions, organic growth in Hawthorne
  • Gross margin rate improves 250 basis points in Q3; up 120 basis points year-to-date
  • Q3 GAAP earnings of $2.53 per share, Adjusted earnings of $2.63 per share
  • Full-year Sales and Non-GAAP EPS guidance range re-affirmed

MARYSVILLE, Ohio, Aug. 01, 2017 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE:SMG), the world's leading marketer of branded consumer lawn and garden products, today released fiscal third quarter financial results that were driven by acquisitions as well as solid sales growth in both the U.S. Consumer business and the Hawthorne Gardening Company.

For the quarter ended July 1, 2017, company-wide reported net sales were $1.08 billion, compared with $994.1 million for the same period a year ago. GAAP income from continuing operations was $2.53 per diluted share, compared with $2.06 per share in the prior year. Non-GAAP adjusted earnings, which excluded impairment, restructuring, and the impact of the divestiture of Scotts LawnService, were $2.63 per diluted share compared with $2.16 a year ago.

"Our U.S. core business had a solid quarter, making up ground from a late break to the season and some unexpected challenges in the mass retail channel," said Jim Hagedorn, chairman and CEO. "We also continued to see great progress with Hawthorne, which saw comparative organic sales growth of 21 percent in the quarter.

"During the third quarter we made two small acquisitions - one in the core business and one in Hawthorne - and we were opportunistic in our share repurchase activity. Execution across the organization was also strong, resulting in continued improvement in our gross margin rate, expense control and improvements in working capital management. We remain confident in the revised sales and earnings guidance we provided in June and are optimistic that we also will generate more than $300 million in operating cash flow in fiscal 2017."

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