Scotts Miracle-Gro reported overall sales growth of 2% for its second quarter that ended March 28—an encouraging bit of news that has the lawn and garden giant feeling pretty bullish about the rest of the year.
More recent news has only bolstered that positive sentiment.
"Consumer engagement in April was outstanding, and on a year-to-date basis through May 3, consumer purchases of our products in the U.S. are up 5%," said Jim Hagedorn, chairman and chief executive officer. "Now that the weather has broken in the Northeast, we're seeing strong engagement in all parts of the U.S. I'm especially encouraged by double-digit increases in the Midwest and a 7% increase on the West Coast, despite the highly publicized impact of the drought in California … The business is exactly where we had hoped it would be as we have now reached the peak of the lawn and garden season. While the extended winter weather caused second quarter shipments to finish slightly behind our plan, that shortfall has been overcome. The strong momentum of the business allows us to confidently re-affirm our full-year adjusted earnings guidance of $3.40 to $3.60 per share."
LawnService segment up 5%. The company’s Scotts LawnService segment—which offers lawn, tree and shrub fertilization, insect control and other related services through its network of 160 locations—also posted a good second quarter, sales-wise. Sales increased 5% in the quarter and are up 3% to $77.1 million for the first six months of the company’s fiscal year. However, an operating loss of $22.6 million was realized for the second quarter, compared to a loss of $20.3 million during the second quarter a year ago.
