CNW Group/GrowGeneration Corp.
Shares of GrowGeneration fell sharply Thursday after the gardening products retailer lowered guidance due to a general slowdown in the hydroponics market.
The stock fell 8.2% to $10.19.GrowGeneration (ticker: GRWG) said full-year revenue will be between $420 million to $422 million. Analysts tracked by FactSet predicted $435.3 million. GrowGeneration said in November that it expected full-year revenue of $435 million to $440 million. In 2020, sales were $193 million.
The company projected same-store-sales for the full year to rise 24.4%. Fourth-quarter same-store sales were estimated to decline 12.3%. GrowGeneration anticipates total sales in the fourth quarter of between $88 million to $90 million, below Wall Street forecasts.
“Although we continue to grow our business significantly, we experienced stronger-than-expected pressures in Q4 from the general slowdown in the hydroponics market,” said GrowGeneration CEO Darren Lamper in a press release.
GrowGeneration said it expects an adjusted Ebitda loss in the fourth quarter of $2 million to $4 million.
The company said it was confident it could deliver revenue and Ebitda growth in 2022.
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