Scotts Miracle-Gro Company

Scotts Miracle-Gro announced the execution of key capital allocation initiatives, including the redemption of all $250 million aggregate principal amount of its outstanding 5.250% senior notes due 2026, a move completed on September 11, 2026 and funded through a combination of available revolver debt and planned fiscal year 2026 excess free cash flow. The company also renewed its $750 million accounts receivable facility with JPMorgan Chase Bank, N.A., extending its maturity to August 31, 2027. In addition, ScottsMiracle-Gro executed $25 million in share repurchases during August, marking the start of its $500 million share repurchase program authorized by the Board of Directors, though the company said the timing and scale of future repurchases remain secondary to its commitment to ongoing debt reduction. The company reaffirmed its full Fiscal 2026 guidance, including U.S. Consumer net sales low single-digit growth, non-GAAP adjusted gross margin of at least 32%, non-GAAP adjusted net income per share from continuing operations of $4.30 to $4.45, non-GAAP adjusted EBITDA mid single-digit growth, and free cash flow of $275 million, driving its leverage ratio down to the high 3s. ScottsMiracle-Gro will close its fiscal year on September 30, 2026, and announce full-year financial results on November 4, 2026.

The Scotts Miracle-Gro Company is expanding its soil amendment portfolio by acquiring the Black Kow brand, a move that supports its multi-year SMG 2.0 growth plan. The acquisition follows an existing agreement under which SMG has been the exclusive producer, distributor, and marketer of Black Kow since January 2026, with an option to buy. The company has announced its intention to exercise that option, with the deal expected to close in October; terms were not disclosed. Management expects the transaction to contribute to top-line sales while maintaining the company's margin profile, and it is described as a low-risk investment that should be accretive to earnings per share starting in the first year. The Black Kow brand, a trusted 57-year-old name in soil amendments, will be scaled through innovation and expanded nationwide, supporting SMG's fiscal 2027-2029 growth targets of 2-4% annual net sales growth, 50-100 basis points of adjusted gross margin improvement, 5-8% adjusted EPS growth, and free cash flow above $275 million.

Scotts Miracle-Gro's new CEO Nate Baxter is tackling the challenge of winning over young homeowners who are content with dandelions in their lawns, as the company seeks to grow beyond its traditional customer base. Baxter, who took over after serving as COO, is responding to a shift toward natural landscaping by introducing recyclable paper packaging and all-natural lawn food, and he plans to develop products that help consumers understand soil health. The company, which dates back to 1868, has also been recovering from excess fertilizer inventory built during the pandemic and a failed cannabis products venture, which Baxter divested earlier this year. At a recent investor day, Scotts Miracle-Gro projected annual sales growth of 2% to 4%, adjusted gross margin expansion of 50 to 100 basis points, and adjusted EPS growth of 5% to 8% for fiscal 2027 through 2029, while targeting over $275 million in free cash flow and a $500 million stock buyback. The stock is up about 4% this year after a 63% decline over the past five years.

The Scotts Miracle-Gro Company reported third quarter net sales of $1.17 billion, a 1% increase, and raised its full-year non-GAAP adjusted EPS guidance to a range of $4.30 to $4.45 per share, up from the prior range of $4.15 to $4.35. Branded product sales grew 4.5% year to date, reflecting a strategic shift toward higher-margin brands and away from lower-margin commodity items, while e-commerce point-of-sale dollars rose 27% and now account for 13% of total company POS dollars. The company exited approximately $100 million in low-margin commodity mulch and soil sales during the year and is targeting a 30% reduction in its lowest-performing stock-keeping units by the end of fiscal 2027. Net leverage improved to 3.78x from 4.15x a year ago, and free cash flow guidance of $275 million was reaffirmed, with the intent to drive the leverage ratio toward the high 3s. Management noted that entering the fourth quarter, retailer inventories were slightly elevated over the prior year by high-single-digit percentages, which is expected to lead to a slowdown in purchasing activity and push full-year U.S. Consumer sales growth toward the lower end of the low-single-digit guidance range.

The Scotts Miracle-Gro Company announced mid-range financial targets for fiscal 2027 through fiscal 2029, aiming to drive sustainable mid- and long-term value. The company expects average annual total company net sales growth of 2 to 4 percent, adjusted EPS growth of 5 to 8 percent, and adjusted gross margin improvement of 50 to 100 basis points over that period. These targets align with its SMG 2.0 growth strategy. Last month, Scotts raised its adjusted net income per share from continuing operations to a range of $4.30 to $4.45 and reaffirmed adjusted EBITDA growth in the mid single digits. In pre-market trading, shares were up 1.79 percent at $69.40 on the NYSE.

Scotts Miracle-Gro declared a quarterly dividend of $0.66 per share, in line with the previous payout. The forward yield is 3.6%. The dividend is payable on September 4 to shareholders of record as of August 21, with the ex-dividend date also on August 21.

The Scotts Miracle-Gro Company has launched its first comprehensive Hispanic marketing initiatives for its Scotts, Ortho, and Miracle-Gro brands. Developed with Lopez Negrete Communications, the campaigns will run across broadcast, digital, social, and streaming throughout spring and summer. The effort targets younger Hispanic homeowners and renters who view outdoor care as an expression of pride and identity. Campaigns include Scotts Turf Builder's "Mejor Pasto. Controla Tu Gasto," Ortho's "Mi Casa es Mi Casa," and Miracle-Gro's "Es un Milagro. Es Miracle-Gro." The company, with approximately $3.34 billion in sales, aims to deepen engagement with one of the fastest-growing consumer segments in the United States.

ScottsMiracle-Gro has appointed Nick Miaritis as executive vice president and chief brand officer, a new executive-level position. Miaritis, formerly chief client officer at VaynerMedia, will oversee the company's brands and lead all marketing strategies as part of its SMG 2.0 transformation into a premier outdoor lifestyle brand. He will report to President and Chief Operating Officer Nate Baxter. The company, with approximately $3.3 billion in sales, aims to expand ecommerce and connect with a new generation of consumers through social and digital marketing.

Gardenuity is leveraging a patented AI algorithm called Gardenuity Match to pair customers with the right plants based on predictive weather and growing conditions, while also using AI-driven alerts to help gardeners care for their plants. Co-Founder and CEO Donna Letier explained that the system considers factors like zip code and time to harvest to ensure a successful gardening experience, and the company’s GrowPro feature sends text alerts when weather threatens specific plants. About 65% of Gardenuity’s business comes from corporate wellness partnerships, and the company has become the first gardening company to have its offerings covered by insurance, with Cigna as an early adopter. Letier also announced a new collection called Inspired to Grow, launched in partnership with Bonnie Plants and Scotts Miracle-Gro, aimed at making gardening accessible to a wide range of lifestyles.