The Scotts Miracle - Gro Company , a marketer of brandmark consumer lawn and garden as well as hydroponic and indoor mature production , today announced company - wide sales increased 105 pct to a record $ 748.6 million in its financial first after part primarily driven by secure retailer support in the U.S. Consumer section as well as continued impulse in Hawthorne .
For the fourth part 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 companionship ’s guidance – was $ 0.39 per diluted plowshare in the fourth compared with a red ink of $ 1.12 per share last yr . Due to the seasonal nature of the lawn and garden category , ScottsMiracle - Gro has historically reported a personnel casualty during its first poop . The upshot in 2021 mark the first time the Company has ever reported a first quarter net income .
“ While we anticipated a strong starting signal to fiscal 2021 , both the U.S. Consumer and Hawthorne segment surpassed our expectations and put us on a good flight for the symmetry of the class , ” say Jim Hagedorn , chairman and chief executive officer . “ In U.S. Consumer , we are exercise closely with our retail partners as they prepare for the forthcoming growing season . And Hawthorne continues to demonstrate its best - in - class performance within its industry , working with retailer and growers to help drive their success .
“ Our strong outset gives us renewed trust in our full - year outlook although we remain sensitive to the challenge in the second one-half of the financial year against historic comparisons . We now believe we have enough visibleness , however , to raise our full - year sales ontogeny outlook for Hawthorne to a orbit of 20 to 30 percentage , compare with our previous mind-set of 15 to 20 percentage . Despite the historically firm start in U.S. Consumer , it remain too early in the season to conform our lookout for that business . ”
First quarter detailsFor the fiscal first quarter , the Company report sales of $ 748.6 million , up 105 percent from $ 365.8 million . Due to the Company ’s fiscal calendar , the first twenty-five percent of 2021 had five more days than the first one-fourth of fiscal 2020 . The difference had a sales impingement of approximately $ 43 million .
First fourth part gross sales for the Hawthorne section increased 71 percent to $ 309.4 million driven by potent demand in all categories of indoor growing equipment and supply . U.S. Consumer segment sales increased 147 pct to $ 408.2 million . Consumer purchases of the caller ’s products at its great retail partners increased 40 percent in the stern . A significant portion of the sales growth for U.S. Consumer is attributable to replenishing of retail stock list .
The party - all-encompassing GAAP and non - GAAP adjusted gross margin rates were 25.5 percent and 26.7 percent , respectively , compare with 14.8 percent and 14.9 percent a year ago . The melioration was driven by fixed cost leverage and mathematical product mixture . However , some of those benefit are related to the timing of shipments and are expect to reverse in subsequent quarters .
Selling , oecumenical and administrative expenses ( SG&A ) increased 31 per centum to $ 156.7 million . The increment is largely driven by increase marketing disbursement in the U.S. Consumer segment .
“ Our investment in merchandising continues to be a focal point expanse as we tone up our relationship with nurseryman , ” Hagedorn say . “ Our year - round commitment to push back the conversation with consumer will let in our first commercial message specially produced for the Super Bowl , which is schedule to appear in the second quarter of this Sunday ’s game . That variety of reach , match with our information - driven and extremely aim glide slope to social media , is cardinal in our efforts to retain the billion of novel consumers who have enter our category over the preceding year . ”
On a caller - wide basis , GAAP income from continuing operations was $ 25.2 million , or $ 0.43 per share , compared with a passing of $ 71.3 million , or $ 1.28 per share , for the first one-quarter of fiscal 2020 . Those resultant include impairment , restructuring and other one - prison term items , as well as costs related to refinance . eject those items , the non - GAAP adjusted income was $ 22.2 million , or $ 0.39 per share , compare with a loss of $ 62.4 million , or $ 1.12 per share , last year .
Full - class outlookThe Company said it now expects fiscal 2021 sale growth of 1 to 6 percent compared to 0 to 5 pct antecedently . Nathaniel Hawthorne sales event counsel was increased to a grasp of 20 to 30 percent from a late range of 15 to 20 per centum . counselling for U.S. Consumer sale of 0 to minus 5 percent was reaffirmed . Guidance for non - GAAP adjusted EPS of $ 8.00 to $ 8.40 was reaffirm as the Company noted that it now expects SG&A to wane 3 to 8 percent from 2020 spending grade , compared to a old estimation of a 6 to 11 percent year - over - year descent . The adjusted gross margin rate is now expected to decline 125 to 175 basis points year - over - year due to higher trade good costs and segment mixture more to a great extent skewed to the lower allowance Nathaniel Hawthorne line of work than previously contemplated . The retool flagrant security deposit rate guidance compares to a former expect decline of 50 cornerstone points .
Conference Call and Webcast Scheduled for 9:00 a.m. EST Feb. 3The Company will discuss solvent during a webcast and league call today at 9:00 a.m. EST . To participate in the conference call , please call 1 - 800 - 263 - 0877 ( Conference Code : 3989033 ) . A rematch of the call can be heard by call 1 - 888 - 203 - 1112 . The replay will be available for 15 day . A live webcast of the call and the insistence freeing will be usable on the Company ’s investor relations website at http://investor.scotts.com . An archive of the press waiver and any accompanying info will remain available for at least a 12 - calendar month stop .
