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Jul 02, 2022
Scotts Q3 2022 Earnings Report
Scotts Miracle-Gro's financial performance declined due to decreases in both major business segments, and the company announced Project Springboard to enhance shareholder value.
Key Takeaways
Scotts Miracle-Gro's third quarter sales decreased by 26% due to declines in both the Hawthorne and U.S. Consumer segments. The company reported a GAAP net loss per share of $8.01, which includes pre-tax impairment and restructuring charges of $724.2 million. Non-GAAP adjusted earnings per share was $1.98. The company announced Project Springboard to improve financial performance.
Company-wide third quarter sales decreased 26% driven by Hawthorne decline of 63% and U.S. Consumer decline of 14%
Consumer POS climbed in May & June; year-to-date POS dollars down 5%
Q3 GAAP EPS loss of $8.01 per share, includes pre-tax impairment and restructuring charges of $724 million; non-GAAP adjusted EPS of $1.98
Company announces Project Springboard to strengthen the balance sheet, expand margins and improve free cash flow
Scotts
Scotts
Scotts Revenue by Segment
Revenue by Segment
U.S. Consumer Segment Revenue
CapyFin.comHawthorne Segment Revenue
CapyFin.comOther Segment Revenue
CapyFin.com Forward Guidance
The Company lowered its full-year sales guidance in the U.S. Consumer segment due to lower-than-expected replenishment orders from retail partners. The Company now expects sales to decline 8 to 9 percent. The Company also expects further SG&A favorability and is now guiding full-year SG&A down 15 percent. As a result of these changes, the full-year adjusted EPS outlook is now expected to be $4.00 to $4.20.
Positive Outlook
- Full-year SG&A is now guided down 15 percent.
- Project Springboard team achieved the initial cost savings target
- Project Springboard team identified additional opportunities to reduce spending across the business.
Challenges Ahead
- Company lowered its full-year sales guidance in the U.S. Consumer segment due to lower-than-expected replenishment orders from retail partners.
- Company now expects sales to decline 8 to 9 percent.
- Retail inventory reduction efforts have accelerated throughout June and July, driving a larger decline in our full-year sales expectation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income