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Scotts Miracle - Gro Scotts Miracle - Gro Announces Record First Quarter Results ; U.S. Consumer Sales Increase 147 % , Hawthorne Sales Rise 71 % February 3 , 2021 Company reports first - ever profit for fiscal first quarter Full year sales guidance increased ; Non - GAAP adjusted EPS guidance reaffirmed MARYSVILLE , Ohio , Feb. 03 , 2021 ( GLOBE NEWSWIRE ) -- The Scotts Miracle - Gro Company ( NYSE : SMG ) , one of the world's leading marketers of branded consumer lawn and garden as well as hydroponic and indoor growing products , today announced company - wide sales increased 105 percent to a record $ 748.6 million in its fiscal first quarter primarily driven by strong retailer support in the U.S. Consumer segment as well as continued momentum in Hawthorne . For the quarter ended January 2 , 2021 , income from continuing operations was $ 0.43 per diluted share , compared with a loss of $ 1.28 per share in fiscal 2020. Non - GAAP adjusted earnings - which is the basis of the Company's guidance - was $ 0.39 per diluted share in the quarter compared with a loss of $ 1.12 per share last year . Due to the seasonal nature of the lawn and garden category , ScottsMiracle - Gro has historically reported a loss during its first quarter . The results in 2021 mark the first time the Company has ever reported a first quarter profit . " While we anticipated a strong start to fiscal 2021 , both the U.S. Consumer and Hawthorne segments surpassed our expectations and put us on a good trajectory for the balance of the year , " said Jim Hagedorn , chairman and chief executive officer . " In U.S. Consumer , we are working closely with our retail partners as they prepare for the upcoming growing season . And Hawthorne continues to demonstrate its best - in - class performance within its industry , working with retailers and growers to help drive their success . " Our strong start gives us renewed confidence in our full - year outlook although we remain sensitive to the challenges in the second half of the fiscal year against historic comparisons . We now believe we have enough visibility , however , to raise our full - year sales growth outlook for Hawthorne to a range of 20 to 30 percent , compared with our previous outlook of 15 to 20 percent . Despite the historically strong start in U.S. Consumer , it remains too early in the season to adjust our outlook for that business . " First quarter details For the fiscal first quarter , the Company reported sales of $ 748.6 million , up 105 percent from $ 365.8 million . Due to the Company's fiscal calendar , the first quarter of 2021 had five more days than the first quarter of fiscal 2020. The difference had a sales impact of approximately $ 43 million . First quarter sales for the Hawthorne segment increased 71 percent to $ 309.4 million driven by strong demand in all categories of indoor growing equipment and supplies . U.S. Consumer segment sales increased 147 percent to $ 408.2 million . Consumer purchases of the Company's products at its largest retail partners increased 40 percent in the quarter . A significant portion of the sales increase for U.S. Consumer is attributable to replenishing of retail inventory . The company - wide GAAP and non - GAAP adjusted gross margin rates were 25.5 percent and 26.7 percent , respectively , compared with 14.8 percent and 14.9 percent a year ago . The improvement was driven by fixed cost leverage and product mix . However , some of those benefits are related to the timing of shipments and are expected to reverse in subsequent quarters . Selling , general and administrative expenses ( SG & A ) increased 31 percent to $ 156.7 million . The increase is largely driven by increased marketing expense in the U.S. Consumer segment . " Our investment in marketing continues to be a focus area as we strengthen our relationship with gardeners , " Hagedorn said . " Our year - round commitment to driving the conversation with consumers will include our first commercial specially produced for the Super Bowl , which is scheduled to appear in the second quarter of this Sunday's game . That kind of reach , coupled with our data - driven and highly targeted approach to social media , is key in our efforts to retain the millions of new consumers who have entered our category over the past year . " On a company - wide basis , GAAP income from continuing operations was $ 25.2 million , or $ 0.43 per share , compared with a loss of $ 71.3 million , or $ 1.28 per share , for the first quarter of fiscal 2020. Those results include impairment , restructuring and other one - time items , as well as costs related to refinancing . Excluding those items , the non - GAAP adjusted income was $ 22.2 million , or $ 0.39 per share , compared with a loss of $ 62.4 million , or $ 1.12 per share , last year . Full - year outlook The Company said it now expects fiscal 2021 sales growth of 1 to 6 percent compared to 0 to 5 percent previously . Hawthorne sales guidance was increased to a range of 20 to 30 percent from a previous range of 15 to 20 percent . Guidance for U.S. Consumer sales of 0 to minus 5 percent was reaffirmed . Guidance for non - GAAP adjusted EPS of $ 8.00 to $ 8.40 was reaffirmed as the Company noted that it now expects SG & A to decline 3 to 8 percent from 2020 spending levels , compared to a previous estimate of a 6 to 11 percent year - o ear decline . The adjusted gross margin rate is now expected to decline 125 to 175 basis points year - over - year due to higher commodity costs and segment mix more heavily skewed to the lower margin Hawthorne business than previously contemplated . The revised gross margin rate guidance compares to a previous expected decline of 50 basis points . Conference Call and Webcast Scheduled for 9:00 a.m. EST Today , Feb. 3 The Company will discuss results during a webcast and conference call today at 9:00 a.m. EST . To participate in the conference call , please call 1-800-263-0877 ( Conference Code : 3989033 ) . A replay of the call can be heard by calling 1-888-203-1112 . The replay will be available for 15 days . A live webcast of the call and the press release will be available on the Company's investor relations website at http://investor.scotts.com . An archive of the press release and any accompanying information will remain available for at least a 12 - month period .