Scotts Miracle-Gro reaffirms FY25 guidance

The Scotts Miracle-Gro (SMG) Company is reaffirming its full fiscal year 2025 guidance. The Company is providing the guidance update through the first two months of its fiscal third quarter in advance of its presentation today at the William Blair Annual Growth Stock Conference. Additionally, the Company reported that it continued to drive consumer POS unit and dollar growth during the peak lawn and garden season. Through the Memorial Day weekend, the year-to-date increases in POS units and POS dollars were in line with POS trends in the first half of the fiscal year. The Company also projects interest expense to be approximately $30M lower than prior year compared to its previous estimate of a $15M to $20M decrease, and it projects diluted share count increase to be approximately 1M compared to its previous estimate of 2M. The Company expects non-GAAP adjusted earnings per diluted share to be at least $3.50, a 53% increase versus prior year. The Company is reaffirming its previously announced fiscal year 2025 guidance of: U.S. Consumer net sales low single-digit growth; Non-GAAP adjusted gross margin of approximately 30 percent; Non-GAAP adjusted EBITDA of $570M to $590M; Free cash flow of approximately $250M.