The Scotts Miracle-Gro Company (SMG) Earnings Call Transcripts
The Scotts Miracle-Gro Company's Latest Earnings Call - June 3, 2026
In the Q2 2026 earnings call for The Scotts Miracle-Gro Company (SMG:US), management reaffirmed their commitment to a focused growth strategy following the divestiture of their Hawthorne business. Revenue for the quarter was reported at $1.2 billion, reflecting low single-digit growth, while earnings per share (EPS) guidance was raised to a range of $4.15 to $4.35, indicating a 10% to 12% increase year-over-year. The company is targeting a gross margin of at least 32%, supported by ongoing cost-saving initiatives and increased advertising spend, which could drive further stock appreciation.
Reported metrics
| Metric | Value |
|---|---|
| Revenue | $1.2B (inline) |
| EPS Guidance | $4.15 to $4.35 (beat) |
| Gross Margin | 32% (positive) |
| Free Cash Flow | $275M (positive) |
| Advertising Spend Increase | $30M (positive) |
| Leverage Ratio | 3.71x (positive) |
Guidance from management
Management reaffirmed their guidance for low single-digit sales growth in the U.S. consumer segment, with gross margins expected to remain at least 32%. EPS guidance was raised to a range of $4.15 to $4.35, reflecting strong operational performance.
What analysts pressed on
Analysts expressed concerns regarding the potential impact of weather variability on sales, particularly in traditional retail channels. There were also questions about the sustainability of consumer engagement in the face of economic pressures and inflation.
Main topics on the call
- Divestiture of Hawthorne Business — Management highlighted the successful exit from the cannabis sector with the divestiture of the Hawthorne business, allowing for a renewed focus on the core lawn and garden segment. CFO Mark Scheiwer stated, "It will hel...
- Consumer Engagement and Market Trends — Nate Baxter noted a significant demographic shift with younger consumers increasingly engaging in gardening, stating, "we added 20 million new gardeners to the category coming out of the pandemic". This trend is expected...
- Innovation and SKU Rationalization — The company is undergoing a SKU rationalization process, targeting a 30% reduction to streamline offerings and enhance e-commerce capabilities. Baxter mentioned, "This year alone, we've introduced over 80 new SKUs" to me...
- E-commerce Growth — Management reported double-digit growth in e-commerce sales, highlighting its importance as a channel for reaching consumers. Baxter stated, "We don't see those perturbations quite as much because it doesn't depend on so...
Read the full The Scotts Miracle-Gro Company transcript (June 3, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About The Scotts Miracle-Gro Company
The Scotts Miracle-Gro Company (SMG) is a publicly listed company in the Chemicals industry, within the Materials sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 52 calls on record spanning January 27, 2020 to July 29, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 52 The Scotts Miracle-Gro Company earnings call transcripts on record, spanning January 27, 2020 to July 29, 2026. Based on this history, The Scotts Miracle-Gro Company reports quarterly. The most recent call on file is dated July 29, 2026. The full list is below — each row opens the complete, free-to-read transcript.