GrowGeneration Full Year 2024 Earnings: EPS Misses Expectations

GrowGeneration (NASDAQ:GRWG) Full Year 2024 Results

Key Financial Results

• Revenue: US$188.9m (down 16% from FY 2023).
• Net loss: US$49.5m (loss widened by 6.5% from FY 2023).
• US$0.82 loss per share (further deteriorated from US$0.76 loss in FY 2023).

GRWG Sales Performance

• Like-for-like sales growth: 0.9% vs FY 2023.

All figures shown in the chart above are for the trailing 12 month (TTM) period

GrowGeneration EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 36%.

The primary driver behind last 12 months revenue was the Cultivation and Gardening segment contributing a total revenue of US$163.5m (87% of total revenue). Notably, cost of sales worth US$144.1m amounted to 76% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$66.3m (70% of total expenses). Explore how GRWG's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 2.4% p.a. on average during the next 2 years, while revenues in the Specialty Retail industry in the US are expected to grow by 5.0%.

Performance of the American Specialty Retail industry.

The company's shares are down 7.9% from a week ago.

Risk Analysis

It is worth noting though that we have found 3 warning signs for GrowGeneration (1 is a bit concerning!) that you need to take into consideration.

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