GrowGeneration will close four to five underperforming stores and reduce its workforce under a restructuring plan launched in the fourth quarter, the hydroponics and garden retailer said. Two of the planned closures have already taken place; the company did not say how many jobs would be cut or estimate restructuring charges.
The company had already closed four stores in the first nine months of the year. Chief Executive Darren Lampert said the changes could weigh on near-term profitability but were intended to help GrowGeneration operate more efficiently and reach higher profitability in 2027.
GrowGeneration reported third-quarter net income of about $237,000, or break-even earnings per share, compared with a loss of $2.4 million, or 4 cents a share, a year earlier. Revenue declined to $44.8 million from $47.3 million. Analysts surveyed by FactSet had expected earnings of 1 cent a share and revenue of $45 million.
The retailer narrowed its full-year net revenue forecast to $163 million to $165 million, from a previous range of $162 million to $168 million. Analysts currently expect $165.9 million. GrowGeneration withdrew its forecast for adjusted earnings before interest, taxes, depreciation and amortization of $2 million to $3 million, citing the restructuring’s financial impact.
Shares fell 4% to $1.45 in after-hours trading Tuesday. The stock had closed down 3.8% at $1.51 and was up 0.7% year to date through the close.
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