Hawthorne Gardening Q3 Revenue Weakens Again

MARYSVILLE, Ohio, July 30, 2025 (GLOBE NEWSWIRE) — The Scotts Miracle-Gro Company (NYSE: SMG), the world’s leading marketer of branded consumer lawn and garden products as well as a leader in indoor and hydroponic growing products, today announced its results for the third quarter ended June 28, 2025.

“We delivered significant improvements in the financial metrics that are central to our fiscal ’25 plans, further putting us on the path to achieving our full-year guidance,” said Jim Hagedorn, chairman and chief executive officer. “Early in our fourth quarter, consumer POS remains steady, giving us momentum as we extend the lawn and garden season into the fall.

“Our work to transform our company is progressing as well. We are shifting from inward initiatives aimed at cost savings and efficiencies to outward efforts that will enable us to attract new and younger consumers into our category in more powerful ways.”

Mark Scheiwer, chief financial officer and chief accounting officer, added, “Our fiscal third quarter was grounded in continued strong engagement by both our retail partners and consumers. We expect this level of engagement to continue through the fall, bolstering our confidence in our fiscal 2025 commitments centered on improving our overall profitability and strengthening our balance sheet. As we look to the future, we are building on our foundation for growth in fiscal 2026 and beyond.”

Fiscal 2025 Third Quarter Financial Results

For the quarter ended June 28, 2025, U.S. Consumer sales increased 1 percent, to $1.03 billion from $1.02 billion in the same period last year. Total company sales decreased 1 percent to $1.19 billion in the fiscal third quarter from $1.20 billion in the same period last year.

GAAP and non-GAAP adjusted gross margin rates for the quarter were 31.8 percent and 32.1 percent, respectively. These compared to 29.5 percent and 29.2 percent, in the prior year. The improvements were attributable to improved mix driven by the non-recurrence of lower-margin fiscal 2024 sales of bulk raw materials and AeroGarden products and increased sales of higher-margin branded fertilizer and soils products, as well as lower material, manufacturing and distribution costs.

The Company reported GAAP net income for the quarter of $149.1 million, or $2.54 per diluted share, compared with $132.1 million, or $2.28 per diluted share, in the same quarter a year ago. Non-GAAP adjusted net income for the quarter, which excludes impairment, restructuring and other non-recurring items, was $151.5 million, or $2.59 per diluted share, compared with $133.8 million, or $2.31 per diluted share, for the same period last year.

Non-GAAP adjusted EBITDA for the quarter was $256.1 million compared to $236.8 million a year ago. The improvement was driven by the Company’s gross margin improvement and higher U.S. Consumer net sales.

Fiscal 2025 Outlook

The Company reaffirms the full-year non-GAAP fiscal 2025 guidance provided in early June. Highlights include:

Conference Call and Webcast Scheduled for 9 a.m. ET Today, July 30, 2025

The Company will discuss results during a video presentation via webcast today at 9 a.m. ET. To watch the Company presentation and listen to the question-and-answer session, please register in advance at this webcast link. For those planning to participate in the question-and-answer session that follows the video presentation, please register for the webcast to view the presentation in addition to registering in advance via this audio link to receive call-in details and a unique PIN. Supplemental slides will be available approximately 15 minutes prior to the start of the conference call. A replay of the conference call will also be available on the Company’s investor website where an archive of the press release and any accompanying information will remain available for at least a 12-month period.

About ScottsMiracle-Gro

With approximately $3.6 billion in sales, the Company is the world’s largest marketer of branded consumer products for lawn and garden care. The Company’s brands are among the most recognized in the industry. The Company’s Scotts®, Miracle-Gro® and Ortho® brands are market-leading in their categories. The Company’s wholly-owned subsidiary, The Hawthorne Gardening Company LLC, is a leading provider of nutrients, lighting and other materials used in the indoor and hydroponic growing segment. For additional information, visit us at www.scottsmiraclegro.com.

Original press release