GrowGeneration misses Q4 sales estimates due to store consolidation

GrowGeneration

19/03/2026 20:23

Overview

U.S. ag supplies seller's Q4 sales rose 1% yr/yr but missed analyst expectations

Net loss narrowed on lower operating expenses and higher proprietary brand sales

Board authorized $10 mln share repurchase program

Outlook

GrowGeneration expects 2026 revenue between $162 mln and $168 mln

Company sees proprietary brand sales reaching about 40% of Cultivation & Gardening revenue by end-2026

GrowGeneration anticipates breakeven adjusted EBITDA for full-year 2026

Result Drivers

PROPRIETARY BRAND GROWTH - Higher proprietary brand sales mix drove gross margin improvement and supported overall results

COST REDUCTIONS - Lower operating expenses due to store consolidations and cost-reduction initiatives narrowed net loss

CHANNEL SHIFT & STORAGE SOLUTIONS - Sales from closed stores were partially retained through online and other channels; Storage Solutions segment sales increased

Company press release: ID:nGNX6blCFT

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$37.82 mln
$40.03 mln (3 Analysts)
Q4 EPS
-$0.12
Q4 Net Income
-$7.42 mln
Q4 Basic EPS
-$0.12
Q4 Gross Profit
$9.12 mln
Q4 Pretax Profit
-$7.23 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the home improvement products & services retailers peer group is "buy."

Wall Street's median 12-month price target for GrowGeneration Corp is $2.00, about 90.5% above its March 18 closing price of $1.05

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)