GrowGeneration Q2 sales narrowly miss estimates

GrowGeneration

11/08/2025 21:38

Overview

GrowGeneration Corp Q2 net sales rise 14.7% sequentially, missing analyst expectations

Proprietary brand sales grow to 32% of cultivation and gardening revenue

Store operating expenses down 22.9% yr/yr, reflecting cost control measures

Outlook

The owner of specialty retail hydroponic and organic gardening stores expects Q3 2025 net sales to exceed $41 mln

GrowGeneration not providing full-year 2025 guidance due to macroeconomic uncertainty

Company exploring strategies to mitigate risks from global trade policies

GrowGeneration adjusting pricing strategies amid retail pricing pressure

Result Drivers

PROPRIETARY BRAND SALES - Proprietary brand sales increased to 32% of cultivation and gardening revenue, driven by strategic initiatives

COST CONTROL - Store operating expenses declined 22.9% yr/yr, reflecting effective cost control measures

RETAIL CONSOLIDATION - Net loss impacted by decreased sales volume due to fewer retail locations

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$40.96 mln
$41 mln (3 Analysts)
Q2 EPS
-$0.08
Q2 Net Income
-$4.81 mln
Q2 Basic EPS
-$0.08
Q2 Gross Profit
$11.59 mln
Q2 Pretax Profit
-$4.81 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 $1.88, about 44% above its August 8 closing price of $1.05

Press Release: ID:nGNXmCyWS

(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.)