Published on 14 Mar 2024 on Zacks via Yahoo Finance

GrowGeneration (GRWG) Q4 Earnings Miss, Revenues Dip Y/Y

GrowGeneration Corp. GRWG reported an adjusted loss per share of 18 cents in the fourth quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 12 cents. The company reported a loss per share of 25 cents in the fourth quarter of 2022.The company had recorded a $15.7 million non-cash impairment of goodwill and intangible assets related to prior acquisitions in the quarter. Including this, the company reported an adjusted loss per share of 44 cents in the quarter under review.GrowGeneration generated revenues of $49 million in the quarter under review, which declined 9.2% year over year, highlighting weak industry demand. The top line, however, beat the Zacks Consensus Estimate of $46 million. Comparable store sales in the quarter plunged 3.6% from the prior year.The cost of sales declined 15.8% year over year to $38 million in the quarter. Gross profit rose 21.8% year over year to $11.6 million due to improvements in the product mix. The gross margin was 23.5% in the quarter under review compared with 17.6% in the prior-year quarter.Store operating costs were around $12 million compared with $13 million in the prior-year quarter. Selling, general and administrative expenses were down 8.4% year over year to $8 million in the quarter under review. Adjusted EBITDA was a loss  of $3.7 million in the quarter compared with the prior-year quarter’s loss of $10 million.

Financial Position

At the end of 2023, GrowGeneration had cash, cash equivalents and marketable securities of $65 million. Inventory was $65 million, and prepaid and other current assets were $8 million at 2023-end. Total current liabilities, including accounts payable, and accrued payroll and other liabilities, were $31 million at the end of 2023.