GrowGeneration reports Q2 EPS (10c), consensus (8c)

Reports Q2 revenue $53.5M, consensus $52.2M. Darren Lampert, CEO, stated, “We are very pleased to report solid second quarter results that reflect significant progress in several key areas of our business. Second quarter net revenue increased 11.8% sequentially and gross margin reached 26.9%, a 110 basis point improvement over last quarter. Importantly, proprietary brand sales rose to 21.5% of Cultivation and Gardening net sales, a 480 basis point improvement to the same period last year. These results highlight the success of our strategic initiatives to drive proprietary brand sales as well as our ongoing focus on streamlining our business. Recently, we provided details on a comprehensive restructuring plan designed to fundamentally reposition GrowGen as we focus on our proprietary brands, a digital sales transformation centered on commercial customers, and streamlining operations to align with current industry-wide conditions. By executing this plan, we expect to generate margin improvement, reduce expenses by approximately $12.0 million on an annualized basis, and ultimately drive profitability. We are confident that these actions will solidify the path for accelerated and sustainable revenue growth and long-term profitability. In addition to these initiatives, we are also encouraged by recent developments with federal cannabis reform, which would have positive implications for both our business and our customers. We are excited about our future and look forward to sharing updates on our continued progress.”