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SMGBullishCorporate Developmentsnews
High materiality9/10

‘Volatile’ cannabis business causes Scotts Miracle-Gro to shed hydroponic grow unit - MarketWatch

Feb 3, 2025, 8:01 AM EST1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

The planned separation could clarify the company’s value and reduce volatility.

AI summary

What happened, with direct paths to the underlying reporting

Scotts Miracle-Gro plans to separate Hawthorne to boost its valuation. Hawthorne's sales fell 35% to $52 million in the first fiscal quarter. Analyst sees separation as a positive move to reduce earnings volatility. Past consumer brands have exited cannabis, impacting Scotts Miracle-Gro's position. Despite Hawthorne, SMG's overall sales increased to $417 million.

  • Scotts Miracle-Gro plans to separate Hawthorne to boost its valuation.
  • Hawthorne's sales fell 35% to $52 million in the first fiscal quarter.
  • Analyst sees separation as a positive move to reduce earnings volatility.
  • Past consumer brands have exited cannabis, impacting Scotts Miracle-Gro's position.
  • Despite Hawthorne, SMG's overall sales increased to $417 million.

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