Financial Data and Key Metrics Changes - The company reported total net sales of $354.4 million for Q1 2026, with US consumer sales at $328.5 million, exceeding expectations due to early season load-in activities [26][27] - GAAP gross margin rate improved to 25%, up 90 basis points year-over-year, while non-GAAP adjusted gross margin rate was 25.4%, compared to 24.5% a year ago [32] - The GAAP net loss from continuing operations was $47.8 million, or $0.83 per share, an improvement from a loss of $66.1 million, or $1.15 per share in the prior year [34] Business Line Data and Key Metrics Changes - The company is focusing on high-margin branded products, with e-commerce POS dollars for branded products up 12% and units up 17% in Q1 [31] - Indoor gardening POS was up 7.7% in dollars and 9% in units, while Roundup saw a 24% increase in dollars and 27% in units [31] - The divestiture of the Hawthorne business is expected to contribute to a 40 basis point improvement in gross margin [10] Market Data and Key Metrics Changes - Retailer shipments in January 2026 were at a record pace, indicating strong early season demand [27] - The company is expanding its e-commerce presence, with branded product e-commerce sales representing 14% of overall POS in Q1, a 150 basis point increase over the prior year [31] - The company is targeting a 5% annual top-line growth through innovation, pricing, volume, and M&A [6] Company Strategy and Development Direction - The company is investing nearly $1 billion annually in marketing and consumer activation to drive purchases of high-margin branded products [4] - A new multi-year, $500 million share repurchase program was approved to reduce share count to around 40 million shares [4][9] - The company plans to focus on lawn and garden, divesting non-core operations like Hawthorne to strengthen its primary business [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming fiscal 2026 guidance, citing strong retailer support and positive early season indicators [38][41] - The company is committed to a long-term growth trajectory, with a goal of $1 billion in top-line sales growth and EBITDA by 2030 [6][13] - Management emphasized a shift away from quarterly performance focus, aiming for milestone achievements instead [52] Other Important Information - The company is implementing a comprehensive plan for long-term growth, with a focus on innovation and expanding product offerings [14][16] - The company is enhancing its digital platform to improve consumer engagement and e-commerce capabilities [20] - A phased approach to share repurchases is planned, with flexibility to adjust based on financial performance [25] Q&A Session Questions and Answers Question: Can you discuss the confidence in outperforming guidance this year? - Management highlighted improvements in gross margin due to the Hawthorne divestiture and positive sales momentum from retailers as key factors for confidence [39][41] Question: How has early retailer activity influenced your view on inventory loads? - Management noted that early activity has shown optimism from retailers, but emphasized a focus on long-term milestones rather than quarterly results [52][56] Question: What is the potential size of the e-commerce business and its margin compared to brick-and-mortar? - Management indicated that e-commerce presents a significant growth opportunity, with margins being competitive and improving as retailers invest in infrastructure [77][79]

First Quarter ended December 27, 2025 Quarterly Earnings Report Supplemental Financial Presentation January 28, 2026 Please view this presentation in conjunction with our Q1 2026 earnings release, which is furnished on Form 8-K, our related pre-recorded remarks and additional information regarding our non-GAAP financial measures, including GAAP to non-GAAP reconciliations, available on our website at https://investor.scotts.com. 1 Safe Harbor Disclosure Statements contained in this presentation, which addre ...

Core Viewpoint - Scotts Miracle-Gro Company is in advanced discussions to sell its Hawthorne subsidiary to Vireo Growth, Inc., with the deal expected to close in the second quarter of fiscal 2026 [1] Group 1: Sale of Hawthorne Subsidiary - The proposed terms involve Vireo Growth acquiring Hawthorne in exchange for an investment in Vireo, integrating cultivation supply into its consumer cannabis operations [1] Group 2: Financial Reporting and Guidance - The company has classified the Hawthorne business as a discontinued operation effective in the first quarter of fiscal 2026 and reaffirmed its fiscal 2026 guidance [2] - In the first quarter, the net loss from continuing operations was $47.8 million, an improvement from a loss of $66.1 million in the prior year, with loss per share from continuing operations at $0.83 compared to $1.15 [3] - Adjusted net loss per common share from continuing operations was $0.77, down from $0.88 a year ago, while net sales were $354.4 million, reflecting a 3% decrease [3] Group 3: Share Repurchase Program - The Board has approved a share repurchase program authorizing the repurchase of up to $500 million of Scotts Miracle-Gro common stock [2] Group 4: Market Reaction - In pre-market trading on NYSE, Scotts Miracle-Gro shares decreased by 0.4 percent to $63.00 [4]

Core Insights - The Scotts Miracle-Gro Company announced a divestiture plan for its Hawthorne subsidiary, which is in advanced discussions for sale to Vireo Growth, Inc. The transaction is expected to close in the fiscal second quarter [2][6] - The company has initiated a multi-year share repurchase program, authorizing the repurchase of up to $500 million of its common stock, set to commence in late 2026 [3][7] - The company reaffirmed its fiscal 2026 guidance, indicating that the classification of Hawthorne as a discontinued operation will not affect the full-year outlook [2][10] Financial Performance - For the first quarter ended December 27, 2025, U.S. Consumer net sales were reported at $328.5 million, reflecting a low single-digit decline of 4% compared to the previous year [9][23] - The GAAP gross margin rate improved to 25.0%, a 90 basis point increase from the prior year, while the non-GAAP adjusted gross margin rate reached 25.4% [9][28] - The company reported a GAAP net loss from continuing operations of $0.83 per share, which improved by $0.32 compared to the previous year [9][20] Strategic Initiatives - The divestiture of Hawthorne is expected to provide immediate margin-accretive benefits, aligning with the company's multi-year growth strategies and value-creation plans [4][6] - The share repurchase program is part of the company's capital allocation strategy, focusing on leverage reduction and enhancing shareholder returns [3][7] - The company aims to balance investments in growth drivers with leverage improvement to strengthen its capital structure [4][9] Segment Performance - The U.S. Consumer segment reported a net sales decline of 4% to $328.5 million, while the Other segment saw a slight increase of 1% to $25.9 million [23][21] - The segment profit for the U.S. Consumer segment decreased by 8% to $9.0 million, while the Other segment reported a loss of $1.7 million [23][21] - The corporate segment reported a loss of $25.3 million, an improvement from the previous year's loss of $33.9 million [23][21]

The sale of Hawthorne Gardening to Vireo Growth reduces Scotts's exposure to the volatile marijuana sector, executives said. ...

Core Viewpoint - Scotts Miracle-Gro Company (SMG) is facing a projected negative earnings per share of -$1.02 for its upcoming quarterly earnings, yet maintains a relatively high price-to-earnings (P/E) ratio of 24.96, indicating investor confidence in its future profitability [1][2][6] Financial Metrics - The projected revenue for SMG is $357.6 million, with a price-to-sales ratio of 1.07, suggesting potential undervaluation [1][2] - SMG's enterprise value to sales ratio stands at 1.67, and its enterprise value to operating cash flow ratio is 15.39, reflecting solid valuation and cash flow efficiency [3][6] - The earnings yield is reported at 4.01%, providing insight into the return on investment for shareholders despite negative earnings forecasts [3] Debt and Liquidity - The company's debt-to-equity ratio is notably negative at -5.89, indicating a higher level of debt compared to equity, which may raise concerns about financial risk [4] - However, SMG's current ratio of 1.27 suggests a reasonable level of liquidity to cover short-term liabilities, indicating some financial stability [4] Dividend Announcement - SMG has declared a quarterly cash dividend of $0.66 per share, payable on March 6, 2026, to shareholders recorded as of February 20, 2026, demonstrating the company's commitment to returning value to shareholders [5][6]

Financial Data and Key Metrics Changes - The company has paid down over $1.5 billion in debt, significantly improving its leverage and aiming to return to historic norms of leverage in the threes later this fiscal year [2] - There has been consistent improvement in performance, including significant free cash flow generation, meaningful margin improvement, and solid EBITDA growth [2] Business Line Data and Key Metrics Changes - The company is investing heavily in brand and business innovation, focusing on e-commerce and digital marketing to reach new customers [3] - Operational efficiencies have been achieved through automation, AI, and other technologies, aimed at being the lowest-cost, high-performing manufacturer [3] Market Data and Key Metrics Changes - The company is seeing growth opportunities in the e-commerce and digital space, indicating a shift in market strategy to capture emerging customer segments [3] Company Strategy and Development Direction - The company is committed to a disciplined approach to growth with exciting value creation strategies, aiming to enhance shareholder returns [3] - The incentive structure is aligned with the successful execution of the Fiscal 2026 operating plan, reflecting a positive outlook for Fiscal 2026 and beyond [4] Management's Comments on Operating Environment and Future Outlook - Management expresses optimism about the future, indicating that discussions around leverage will become less relevant as the company stabilizes [2] - The company aims to create more value for shareholders and return to being a stable consumer product stock in investor portfolios [3] Other Important Information - The board of directors is composed of members with diverse experiences in finance, government, strategic planning, technology, and consumer marketing, which enhances governance [5] Q&A Session Summary Question: No questions were asked during the session - There were no questions submitted by shareholders during the meeting [34]

Financial Data and Key Metrics Changes - The company has paid down over $1.5 billion in debt, significantly improving its leverage and aiming to return to historic norms of leverage in the threes later this fiscal year [2] - There has been consistent improvement in performance, including significant free cash flow generation, meaningful margin improvement, and solid EBITDA growth [2] Business Line Data and Key Metrics Changes - The company is investing heavily in brand and business innovation, focusing on e-commerce and digital marketing to reach new customers [3] - Operational efficiencies have been achieved through automation, AI, and other technologies, leading to cost reductions and optimization of the supply chain [3] Market Data and Key Metrics Changes - The company is committed to being the lowest-cost, high-performing manufacturer, which is expected to create more value for shareholders [3] Company Strategy and Development Direction - The company is taking a disciplined approach to growth with exciting value creation strategies, aiming to be a stable consumer product stock in investor portfolios [3] - The incentive structure is aligned with the successful execution of the fiscal 2026 operating plan and strategies [4] Management's Comments on Operating Environment and Future Outlook - Management has an optimistic view of fiscal 2026 and beyond, indicating that future discussions will be positive [4] - The company is focused on creating a healthy balance sheet and improving capital structure, which has led to improved performance [2] Other Important Information - The board of directors is composed of members with diverse experiences in finance, government, strategic planning, technology, and consumer marketing [5] - The meeting included proposals for electing directors, approving executive compensation, and ratifying the independent auditor for the fiscal year [14][24][28] Q&A Session Summary Question: No questions were asked during the meeting - There were no questions from shareholders during the Q&A session [34]

Financial Data and Key Metrics Changes - The company has improved its capital structure, resulting in significant free cash flow generation, margin improvement, and solid EBITDA growth [2][3] - Over $1.5 billion in debt has been paid down, with a path to return to historic leverage norms in the threes later this fiscal year [2] Business Line Data and Key Metrics Changes - The company is investing heavily in brand and business innovation, focusing on e-commerce and digital marketing to reach new customers [3] - Operational efficiencies have been achieved through automation and AI, optimizing the supply chain [3] Market Data and Key Metrics Changes - The company is seeing growth opportunities in the digital space, indicating a shift in market strategy [3] Company Strategy and Development Direction - The company aims to be the lowest-cost, high-performing manufacturer, with a disciplined approach to growth and value creation strategies [3] - Management envisions a stable consumer product stock in investor portfolios, with potential for outsized shareholder returns [3] Management's Comments on Operating Environment and Future Outlook - Management has an optimistic view of Fiscal 2026 and beyond, encouraging shareholders to listen to the upcoming earnings call for more details [4] - The focus remains on creating value for shareholders while navigating the current operating environment [3] Other Important Information - The board of directors consists of members with diverse backgrounds in finance, government, and consumer marketing, enhancing oversight of management [5] Q&A Session Summary Question: No questions were asked during the meeting - There were no questions from shareholders, and the meeting was adjourned without further business [33]

Group 1 - The article emphasizes the focus on cash flow and the potential for value and growth in the oil and natural gas sector [1] - Crude Value Insights provides a service that includes a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [1] - Subscribers benefit from live chat discussions about the sector, enhancing community engagement and information sharing [1] Group 2 - A two-week free trial is offered to new subscribers, encouraging them to explore the services related to oil and gas investments [2]