Scotts Miracle-Gro Reports Q2 Profit Increase, Despite Sales Decline

Scotts Miracle-Gro reported improved profitability in its second quarter, with GAAP earnings per share rising to $3.72 and adjusted EPS at $3.98, both surpassing analyst expectations despite a 7% year-over-year revenue decline to $1.42 billion. The company attributed margin improvements to lower costs and a better product mix, and highlighted double-digit growth in consumer transactions, reflecting brand strength and loyalty. While the U.S. Consumer segment experienced a slight decline in sales due to a colder season start, consumer point-of-sale units increased by 12% in the first half of the year. Analysts remain generally optimistic, with multiple firms upgrading SMG to 'Buy' and forecasting price targets averaging around $70—significantly above current trading levels. However, the company withdrew full-year revenue guidance for its Hawthorne segment due to cannabis industry uncertainties, but reaffirmed guidance for other key metrics and continues focusing on debt reduction and free cash flow. Overall, the outlook for Scotts Miracle-Gro remains positive, supported by strong consumer trends and improved financial performance.