Scotts Miracle Gro Earnings: Improving Profitability and Debt Paydown Remain the Focus for 2024

Scotts Miracle Gro’s fiscal 2024 first-quarter earnings saw sales continue to decline across its U.S. Consumer and Hawthorne segments, but we see improvements in both segments to restore profits. We’ve lowered our fair value estimate to $95 per share from $100 after incorporating a weaker near-term Hawthorne outlook as management will reduce third-party sales, leading to lower long-term sales and profits. Our narrow-moat rating is unchanged.