Scotts Miracle-Gro Co. SMG said Wednesday its fiscal second-quarter profit dropped by 60% to $109.4 million, or $1.94 a share, from $276.5 million, or $4.94 a share, in the year-ago quarter. Adjusted profit in the latest quarter totaled $3.78 a share, ahead of the analyst estimate of $3.47 a share, according to data from FactSet. Revenue at the fertilizer and hydroponic growing products maker fell 9% to $1.53 billion, below the estimate of $1.61 billion. The company plans to provide an update on business results and outlook in early June. “After a slow start through March, partly driven by extreme weather in the West, the U.S. consumer business saw improved consumer demand entering May,” the company said. Sales at its Hawthorne growing equipment unit aimed at the cannabis market fell 54% to $93 million, “reflecting the continued challenges in the hydroponic industry.” Scotts Miracle-Gro said its project springboard project will generate $200 million in cost savings. Scotts Miracle-Gro stock is up 42.7% in 2023 compared to a 15.4% increase by the Nasdaq COMP.
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