NYSE$SMG
Scotts Miracle-Gro Company · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
ScottsMiracle-Gro's first quarter performance reflected measurable progress with early season lawn and garden results aligning with expectations. The company reaffirmed its full-year non-GAAP adjusted gross margin and EBITDA targets despite a decline in total company sales due to shipment phasing and Hawthorne segment pressures.
ScottsMiracle-Gro reported a 22% decrease in total company sales, amounting to $410.4 million, for the quarter ended December 30, 2023. The U.S. Consumer net sales decreased by 17%, while the Hawthorne segment experienced a 39% decline. The company reported a GAAP net loss of $80.5 million, or $1.42 per share, and a non-GAAP adjusted loss of $82.2 million, or $1.45 per share. Despite the sales decline, ScottsMiracle-Gro reaffirmed its full-year non-GAAP adjusted gross margin improvement of 250 bps and adjusted EBITDA of $575 million.
- Total Company sales decreased by 22% to $410.4 million, compared to $526.6 million in the prior year.
- U.S. Consumer net sales decreased by 17% to $306.7 million, driven by normalization of shipment phasing.
- Hawthorne segment sales decreased by 39% to $80.1 million due to industry pressures and business restructuring.
- The company reaffirmed its full-year non-GAAP adjusted gross margin improvement of 250 bps and adjusted EBITDA of $575 million.
Headline financials
Revenue & EPS history
Scotts · Revenue · Quarterly
$410M
Revenue by segment
Scotts · $225M total across 2 segments · Q4 2023
- U.S. Consumer$201M-33.5%89.4%
- Other$23.8M+3.5%10.6%
Forward guidance
The Company reaffirms the non-GAAP fiscal 2024 guidance provided last quarter with the exception of Hawthorne net sales. The Company’s primary objective remains restoring a strong balance sheet by generating $575 million adjusted EBITDA and free cash flow of $560 million to deliver the remainder of $1 billion in free cash flow over two years.
Tailwinds
- Reaffirming full-year non-GAAP adjusted gross margin improvement of 250 bps.
- Reaffirming full-year non-GAAP adjusted EBITDA of $575 million.
- Focus on top-line growth.
- Tightly controlling expenses.
- Delivering on targets for free cash flow generation.
Headwinds
- Hawthorne is aggressively pursuing its Signature product strategy to focus on fewer but more profitable brands. The full-year impact on segment net sales cannot yet be estimated with rapid changes underway though the segment is expected to be cash flow positive for the full year.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2024
+0.7%
Avg return
Earnings day
+1.5%
Avg return
5 days after
-0.7%
Avg return
30 days after
60%
41 / 68 earnings
Positive
+18.2%
Q4 2023
Best reaction
-21.9%
Q4 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | -4.6% | -9.2% | -9.8% | |
| Q1 2026 | -0.6% | -0.1% | -10.8% | |
| Q4 2025 | +2.8% | +4.6% | -1.2% | |
| Q2 2025 | -5.9% | +4.9% | +11.2% | |
| Q1 2025 | -5.8% | -8.5% | -22.7% | |
| Q4 2024 | -21.9% | -20.4% | -19.3% | |
| Q3 2024 | +7.1% | +0.7% | +1.1% | |
| Q2 2024 | +0.2% | +4.2% | +1.7% | |
| Q1 2024 | +4.6% | +5.0% | +23.4% | |
| Q4 2023 | +18.2% | +19.3% | +30.9% | |
| Q3 2023 | -21.1% | -23.2% | -23.0% | |
| Q2 2023 | -7.6% | +4.7% | -3.7% | |
| Q1 2023 | +16.2% | +12.3% | +18.1% | |
| Q4 2022 | +8.9% | +11.5% | +20.3% | |
| Q3 2022 | -8.2% | -5.3% | -30.0% | |
| Q2 2022 | +9.9% | -1.3% | -8.9% | |
| Q1 2022 | -6.6% | -12.1% | -8.0% | |
| Q4 2021 | +11.5% | +13.6% | -8.9% | |
| Q3 2021 | -8.2% | -7.9% | -9.7% | |
| Q2 2021 | +5.5% | +6.1% | -11.7% | |
| Q1 2021 | +3.6% | +4.8% | -12.0% | |
| Q4 2020 | +8.3% | -1.5% | +10.0% | |
| Q3 2020 | +8.1% | +8.7% | +15.4% | |
| Q2 2020 | +4.3% | +5.7% | +3.2% | |
| Q1 2020 | +10.5% | +13.3% | -3.0% | |
| Q4 2019 | +4.8% | +9.2% | +5.2% | |
| Q3 2019 | +5.5% | +5.0% | +2.9% | |
| Q2 2019 | +6.8% | +9.3% | +5.3% | |
| Q1 2019 | +6.3% | +8.3% | +17.0% | |
| Q4 2018 | +10.3% | +8.4% | -1.9% | |
| Q3 2018 | -1.0% | +1.7% | -4.0% | |
| Q2 2018 | -7.3% | -2.5% | +1.9% | |
| Q1 2018 | -15.8% | -15.6% | -15.9% | |
| Q4 2017 | -0.2% | -0.5% | +2.3% | |
| Q3 2017 | -0.3% | +1.0% | -0.4% | |
| Q2 2017 | -8.5% | -7.2% | -9.4% | |
| Q1 2017 | -2.2% | -3.1% | -1.9% | |
| Q4 2016 | +0.5% | +2.6% | +4.8% | |
| Q3 2016 | +7.7% | +12.0% | +12.8% | |
| Q2 2016 | -3.8% | — | — | |
| Q1 2016 | -3.9% | — | — | |
| Q4 2015 | +1.4% | — | — | |
| Q3 2015 | +8.6% | — | — | |
| Q2 2015 | +2.0% | — | — | |
| Q1 2015 | +2.1% | — | — | |
| Q4 2014 | +0.6% | — | — | |
| Q3 2014 | +4.6% | — | — | |
| Q2 2014 | -0.9% | — | — | |
| Q1 2014 | -0.4% | — | — | |
| Q4 2013 | -0.5% | — | — | |
| Q3 2013 | +0.5% | — | — | |
| Q2 2013 | +5.7% | — | — | |
| Q1 2013 | +0.1% | — | — | |
| Q4 2012 | -4.8% | — | — | |
| Q3 2012 | +4.1% | — | — | |
| Q2 2012 | -16.2% | — | — | |
| Q1 2012 | +4.9% | — | — | |
| Q4 2011 | -1.6% | — | — | |
| Q3 2011 | +0.8% | — | — | |
| Q2 2011 | -0.8% | — | — | |
| Q1 2010 | +0.0% | — | — | |
| Q1 2011 | +0.0% | — | — | |
| Q4 2010 | +1.0% | — | — | |
| Q4 2008 | +1.0% | — | — | |
| Q2 2010 | +1.0% | — | — | |
| Q3 2009 | +1.3% | — | — | |
| Q3 2010 | +1.3% | — | — | |
| Q4 2009 | +1.3% | — | — |
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