Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) announced its financial results on Thursday for the third quarter ended Sept. 30, 2023, revealing a nearly 27% year-over-year net sales drop to $54.2 million.
Over the quarter, the company initiated a second phase of its restructuring plan, primarily to right-size its durable equipment manufacturing facilities to better serve current levels of demand, while maintaining its high standard of customer service.
“Given the ongoing industry softness, we are introducing the second phase of our restructuring strategy to enhance operational efficiency, reduce our manufacturing footprint in the U.S., and realize additional future cost savings,” Bill Toler, chairman and CEO of Hydrofarm said. “We are encouraged by the progress we have achieved so far this year and by recent US regulatory developments, and we are confident in the long-term fundamentals of our business going into 2024 and beyond.”
Q3 2023 Financial Highlights
- Gross profit decreased to $3.3 million, or 6.1% of net sales, compared to $5.9 million, or 7.9% of net sales in the prior year period. The decrease was primarily due to $7.4 million of restructuring charges and $1.2 million of non-restructuring inventory charges incurred in the …