AeroGrow losses mount despite sales rising over year

BOULDER  — AeroGrow International Inc. (OTCQB: AERO) losses rose by 37 percent over the past quarter despite rising sales over the past year.

The Boulder-based producer of indoor gardens posted $4,475,000 in sales in its latest quarter ending June 30, good for a 16 percent year-over-year increase in revenue, according to filings with the U.S. Securities and Exchange Commission. 

The revenue gains were offset by increases in operating expenses, with an additional $50,000 spent on research and development, $162,000 in marketing and $209,000 in administrative costs added over the course of the quarter. 

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AeroGrow posted a $1,058,000 net loss in the quarter, compared to a $634,000 loss in the period prior. The company’s stock lost 3 cents per share in the quarter.

In a statement, AeroGrow president and CEO J. Michael Wolfe said the quarter is usually the company’s weakest sales period in the year, and a number of one-time expenses drove administrative costs higher.

The company expects to see revenues increase in the holiday shopping season as it pushes heavier advertising campaigns and launches a new version of its second-largest garden product.

“The big revenue quarters are ahead and our team is focused on continuing to build on our recent momentum and making our upcoming key selling season the best in our company’s history,” Wolfe said.

AeroGrow announced it had signed a seven-year lease for a 14,630-square-foot building in Boulder late last month.

AeroGrow’s stock was virtually unchanged in the period following the report, losing 2 cents to fall to $1.16 per share as of 11 a.m. Mountain Time.