GrowGeneration Corp Reports Q2 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
GrowGeneration Corp. Reports Q2 2024 Financial Results
GrowGeneration Corp. (NASDAQ: GRWG) reported its financial results for the second quarter ending on June 30, 2024.
Key Financial Metrics
| Metric | Q2 2023 | Q2 2024 | YoY Change | Consensus Estimates (Q2 2024) |
|---|---|---|---|---|
| Total Revenue | $63.9M | $53.5M | -16.3% | $52.2M |
| Earnings Per Share (EPS) | - | -0.09 | N/A | -0.08 |
The company saw a decline in total revenue, decreasing by 16.3% year-over-year (YoY), from $63.9M in Q2 2023 to $53.5M in Q2 2024. The earnings per share fell short of the consensus estimates, reporting a loss of $0.09 compared to the expected $0.08.
Segment Revenue Performance
| Segment | Q2 2023 Revenue | Q2 2024 Revenue | YoY Change |
|---|---|---|---|
| Cultivation and Gardening | $55.6M | $46.1M | -17.1% |
| Storage Solutions | $8.4M | $7.4M | -11.9% |
The Cultivation and Gardening segment led the revenue decline with a 17.1% decrease, while the Storage Solutions segment also reported an 11.9% dip in revenue compared to the same quarter last year.
Operational Data
| Key Metric | Q2 2023 | Q2 2024 |
|---|---|---|
| Same-Store Sales Growth | Not Provided | -6.2% |
| Proprietary Brand Sales (%) | 16.7% | 21.5% |
| Consumable Products Sales (%) | 69.7% | 73.0% |
A decrease in same-store sales by 6.2% primarily attributed to decreased e-commerce and brick-and-mortar retail sales volume was observed. However, proprietary brand sales showed a positive trend, increasing to 21.5% of Cultivation and Gardening sales from 16.7% the previous year.
Comments from Company Officers
Management attributed the revenue decline to consolidating twelve retail locations after June 30, 2023, as well as closing seven locations in the first half of 2024. They emphasized gains in proprietary brand sales and highlighted strategic restructuring plans focusing on long-term profitability and growth in proprietary brands, commercial sales, and e-commerce.
Dividends and Share Repurchase Program
In March 2024, the Board authorized a share repurchase program for up to $6M in common stock. In Q2 2024, GrowGeneration repurchased 1.7 million shares for $4.2M, leaving approximately $1.8M available under the program.
Forward Guidance
The company did not provide specific forward guidance for future quarters but indicated that restructuring plans would be completed by the end of fiscal year 2024, projected to generate annualized cost savings of approximately $12M and improve profitability.
Stock Price Movement
The stock price saw a 4.21% increase following the earnings release event.
This report underscores strategic moves by GrowGeneration to streamline operations and boost proprietary sales amid ongoing market challenges, positioning the company for long-term growth.
