SMGScotts Miracle-Gro Company
Earnings Recap
• Reported GAAP EPS of $4.11 up 8.73% YoY • Reported revenue of $1.46B up 2.71% YoY • Scotts Miracle-Gro reaffirmed fiscal 2026 guidance, expecting U.S. Consumer net sales low single-digit growth, a non-GAAP adjusted gross margin rate of at least 32%, and non-GAAP adjusted net income per share from $4.15 to $4.35.
Bullish
Scotts Miracle-Gro achieved a 5% net sales increase and 240 basis points gross margin rate improvement, driving profitability growth. The company also improved net leverage, enabling shareholder-friendly actions.
Bearish
Scotts Miracle-Gro faces risks from sales concentration with a few retail customers, intense market competition potentially hindering revenue growth, and indebtedness that could limit its financial flexibility.