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.
Scotts Miracle-Gro CompanyInvestor day guidance and buyback signal growth and shareholder returns.
