The Scotts Miracle-Gro Co. (SMG), a manufacturer of lawn and garden care products, on Tuesday reported a wider loss for the seasonally weak first quarter amid an 8 percent drop in net sales. Adjusted loss came in lower than analysts' consensus estimate.
Net loss for the quarter widened to $73.9 million or $1.21 per share from $67.9 million or $1.02 per share in the previous year. The latest results included costs related to product registration and recall matters as well as charges stemming from a restructuring.
Adjusted loss from continuing operations widened to $1.18 per share from $0.99 per share. On average, 10 analysts polled by Thomson Reuters expected a loss of $1.22 per share. Analysts' estimates typically exclude special items. Gross margin fell to 11.7 percent from 21.3 percent, amid higher commodity costs, reduced leverage of fixed warehousing and manufacturing costs and unfavorable product mix. Net sales dropped to $211.2 million from $230.2 million. Wall Street expected revenues of $205.57 million for the quarter.
Global Consumer sales declined 21 percent to $149.1 million, due to a planned shift of sales out of the first fiscal quarter as the company has worked with its retail partners to move shipments of its products closer to the start of the lawn and garden season.
Scotts LawnService sales edged up 1 percent to $37.6 million.
Looking ahead, Scotts Miracle-Gro expects to deliver company-wide sales growth of at least 6 percent this year. SMG closed on Monday at $49.05, up from the prior close of $48.82, on 678,000 shares.
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