Lawn and garden products marketer The Scotts Miracle-Gro Company (SMG), Tuesday, reported a narrower loss from continuing operations for the first quarter, helped by a 6% increase in sales. The company also confirmed its full year guidance for sales and adjusted earnings per share.
For the quarter, net loss widened slightly to $57.7 million from $57.0 million in the comparable period last year. Loss per share for the period remained flat at $0.88.
Loss from continuing operations for the period narrowed 6% to $49.8 million or $0.76 per share from $52.9 million or $0.82 per share in the same period a year ago.
Adjusted loss from continuing operations, which excludes the costs related to product registration and recall matters, was flat at $48.0 million, while on a per-share basis, it narrowed to $0.73 from $0.74 a year ago.
On average, 10 analysts polled by Thomson Reuters expected the company to report a loss of $0.83 per share for the first quarter. Analysts estimates typically exclude special items.
First quarter sales grew 6% to $302.2 million from $286.1 million the same period a year ago, driven by a 14% increase in the Global Consumer segment in the strong fall lawn care season. On average, seven analysts were expecting the company to generate a revenue of $288.27 million.
Jim Hagedorn, chairman and chief executive officer said, "We invested heavily to support the fall lawn care season and our efforts successfully kept both our retail partners and consumers engaged in the category. It was a great way to end the 2009 lawn and garden season and an even better way to begin a new fiscal year."
By segment, Global Consumer sales rose 14% to $214.0 million from $188.3 million primarily due to a 17% improvement in the US, while sales from Global Professional segment, which serves specialty agriculture and professional growers, decreased 7% to $55.4 million from $59.5 million and sales from Scotts LawnService dropped 15% to $33.0 million from $38.8 million.
Adjusted gross margin rate declined to 21.8% from 27.5% due primarily to results in the Global Professional business. The company noted that it continues to expect its full-year gross margin rate to be comparable with prior year as selling price reductions in Global Professional reach their anniversary and the benefits of declining commodity costs are realized.
Looking ahead, the company continues to expect adjusted earnings in a range of $3.00 to $3.10 per share for the full year, with sales growth of 3% to 5% along with flat gross margin rate. Analysts currently expect earnings of $3.12 per share on a revenue of $3.12 billion for the full year.
With strong shipments to retailers and maintaining strong expense control by locking over 60% of its most sensitive commodities, "We are well-positioned entering the peak months of the year and we remain confident in our current outlook," said Dave Evans, chief financial officer.
SMG shares are currently trading at $39.96, down $0.09 or 0.23% on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.