Big Q3 sales gains for lawn care giant
Marysville, Ohio-based Scotts Miracle-Gro Company said the business has outperformed its most optimistic expectations so far this year. Company-wide third quarter sales were up 28% to $1.49 billion.
Sales to U.S. consumers have been accelerating significantly since May and increased 21% to $1.08 billion in the third quarter. The company’s Hawthorne segment, hydroponics and indoor growing, reported a sales increase of 72% to $302.9 million.
The company announced plan for one-time payments to its 3,000 hourly and salaried employees who do not participate in the company’s bonus plans.
And for shareholders, Scotts approved a special dividend of $5 per share.
Scotts’ growth has led to upwardly revised expectations for the full year to 26% to 28% growth. What had been guidance of 9% to 11% for U.S. Consumer segment are now 20% to 22%. And what had been 45% to 50% growth for Hawthorne have been adjusted to 55% to 60%.
The bottom line: Net income increased to $203.3 million, up from $201.6 million in the same quarter last year.
What the CEO said: Our results this year continue to exceed our most optimistic expectations and are a testament to the critical nature of the categories in which we compete, the commitment of our retail partners, and the loyalty of the consumers and cultivators who rely on our products for their success,” said Jim Hagedorn, chairman and chief executive officer.
For more information: Read the full Q3 earnings release here.