Sign up USA
Proactive Investors - Run By Investors For Investors

Scotts Miracle-Gro reports record sales in May as marijuana legalization spreads

Sales of its lawn and garden products surged 28% to US$565mln in May
Potting soil
The company updated its yearly outlook to reflect lower sales guidance

The Scotts Miracle-Gro Company (NYSE:SMG) announced record consumer purchase activity in May, potentially boosted by the rise in legalized recreational and medicinal marijuana use.

Consumers purchases of its lawn and garden products rose 28% in May, totaling US$565mln. The surge in sales helped the company to recover nearly off its decline reported through the first seven months of the fiscal year.

Despite the rise in sales in May, the company updated its financial outlook to reflect its lower sales guidance for the year ahead. The company expects full-year sales to be within a range of flat to 2% higher than the prior year compared with its previous range of 2% to 4% growth.

“While consumer purchases have been tracking positively for weeks, the combination of the slow start to the season and improved inventory planning by our retail partners is causing us to lower sales guidance for our U.S. Consumer segment. Our original guidance assumed there would be a 2-to-3 point gap between POS and our shipments, which is, in fact, what we’re seeing,” said CEO Jim Hagedorn in a press release.

Interest expense is expected to total around US$90mln due to higher borrowing levels associated with the company’s acquisitions.

For the third quarter, Scotts forecast share buybacks to surpass US$300mln. It is expecting a “modest level” of stock repurchases in its fiscal fourth quarter.

Shares of the Ohio-based company were up less than 1% to US$87.25 in Tuesday after-hours trading.

View full SMG profile View Profile

The Scotts Miracle-Gro Company Timeline

Related Articles

HPA is used in LED lighting
March 13 2018
High purity alumina (HPA) is a high-value, robust margin and heavily sought-after product.
Cleaning products
May 30 2018
Most of the AIM-listed polymer maker's activities will be consolidated into its US operations, improving the link between product support and manufacturing
Ray Gibbs
March 07 2018
Haydale has been investing heavily in its Taiwanese operation following October’s £9.3mln fundraise

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use