Scotts Miracle-Gro Company

The Scotts Miracle-Gro Company reported third quarter net sales of $1.17 billion, a 1% increase, and raised its full-year non-GAAP adjusted EPS guidance to a range of $4.30 to $4.45 per share, up from the prior range of $4.15 to $4.35. Branded product sales grew 4.5% year to date, reflecting a strategic shift toward higher-margin brands and away from lower-margin commodity items, while e-commerce point-of-sale dollars rose 27% and now account for 13% of total company POS dollars. The company exited approximately $100 million in low-margin commodity mulch and soil sales during the year and is targeting a 30% reduction in its lowest-performing stock-keeping units by the end of fiscal 2027. Net leverage improved to 3.78x from 4.15x a year ago, and free cash flow guidance of $275 million was reaffirmed, with the intent to drive the leverage ratio toward the high 3s. Management noted that entering the fourth quarter, retailer inventories were slightly elevated over the prior year by high-single-digit percentages, which is expected to lead to a slowdown in purchasing activity and push full-year U.S. Consumer sales growth toward the lower end of the low-single-digit guidance range.

The Scotts Miracle-Gro Company announced mid-range financial targets for fiscal 2027 through fiscal 2029, aiming to drive sustainable mid- and long-term value. The company expects average annual total company net sales growth of 2 to 4 percent, adjusted EPS growth of 5 to 8 percent, and adjusted gross margin improvement of 50 to 100 basis points over that period. These targets align with its SMG 2.0 growth strategy. Last month, Scotts raised its adjusted net income per share from continuing operations to a range of $4.30 to $4.45 and reaffirmed adjusted EBITDA growth in the mid single digits. In pre-market trading, shares were up 1.79 percent at $69.40 on the NYSE.

Scotts Miracle-Gro declared a quarterly dividend of $0.66 per share, in line with the previous payout. The forward yield is 3.6%. The dividend is payable on September 4 to shareholders of record as of August 21, with the ex-dividend date also on August 21.

The Scotts Miracle-Gro Company has launched its first comprehensive Hispanic marketing initiatives for its Scotts, Ortho, and Miracle-Gro brands. Developed with Lopez Negrete Communications, the campaigns will run across broadcast, digital, social, and streaming throughout spring and summer. The effort targets younger Hispanic homeowners and renters who view outdoor care as an expression of pride and identity. Campaigns include Scotts Turf Builder's "Mejor Pasto. Controla Tu Gasto," Ortho's "Mi Casa es Mi Casa," and Miracle-Gro's "Es un Milagro. Es Miracle-Gro." The company, with approximately $3.34 billion in sales, aims to deepen engagement with one of the fastest-growing consumer segments in the United States.

ScottsMiracle-Gro has appointed Nick Miaritis as executive vice president and chief brand officer, a new executive-level position. Miaritis, formerly chief client officer at VaynerMedia, will oversee the company's brands and lead all marketing strategies as part of its SMG 2.0 transformation into a premier outdoor lifestyle brand. He will report to President and Chief Operating Officer Nate Baxter. The company, with approximately $3.3 billion in sales, aims to expand ecommerce and connect with a new generation of consumers through social and digital marketing.

Gardenuity is leveraging a patented AI algorithm called Gardenuity Match to pair customers with the right plants based on predictive weather and growing conditions, while also using AI-driven alerts to help gardeners care for their plants. Co-Founder and CEO Donna Letier explained that the system considers factors like zip code and time to harvest to ensure a successful gardening experience, and the company’s GrowPro feature sends text alerts when weather threatens specific plants. About 65% of Gardenuity’s business comes from corporate wellness partnerships, and the company has become the first gardening company to have its offerings covered by insurance, with Cigna as an early adopter. Letier also announced a new collection called Inspired to Grow, launched in partnership with Bonnie Plants and Scotts Miracle-Gro, aimed at making gardening accessible to a wide range of lifestyles.