AeroGrow says COVID led to boom in sales, now exploring potential deals

BOULDER — AeroGrow International Inc. (OTCQB: AERO) set sales records in the first quarter of this year thanks to an increased interest due to the COVID-19 pandemic. The company also disclosed it has retained advisers for a potential sale offer or acquisition.

The Boulder-based maker of mini-greenhouses reported $11.8 million in net sales between January and the end of March, a 29% increase over the same period in 2019.

The company also reported revenues of $39.2 million for its fiscal year that ended March 31, an increase of 14% from the previous year. It also posted a $57,000 profit for the year compared to a $291,000 loss in fiscal year 2019.

In a statement, CEO Michael Wolfe said the emergence of COVID-19 as a public health emergency drew consumers to look toward ways of growing fresh food at home and caused a spike in interest for garden products.

“We believe that the pandemic has further increased this awareness and may be moving our products from being considered somewhat discretionary to being more of a consumer staple,” he said.

AeroGrow also disclosed that it retained investment bank Stifel Financial Corp. (NYSE: SF) as an adviser for a “broad review of strategic alternatives,” a sign that the company may be looking to sell itself or acquire a competitor at some point in the near future.

© 2020 BizWest Media LLC

BOULDER — AeroGrow International Inc. (OTCQB: AERO) set sales records in the first quarter of this year thanks to an increased interest due to the COVID-19 pandemic. The company also disclosed it has retained advisers for a potential sale offer or acquisition.

The Boulder-based maker of mini-greenhouses reported $11.8 million in net sales between January and the end of March, a 29% increase over the same period in 2019.

The company also reported revenues of $39.2 million for its fiscal year that ended March 31, an increase of 14% from the previous year. It also posted a $57,000 profit for the year compared to a $291,000 loss in fiscal year 2019.

In a statement, CEO Michael Wolfe said the emergence of COVID-19 as a public health emergency drew consumers to look toward ways of growing fresh food at home and caused a spike in interest for garden products.

“We believe that the pandemic has further increased this awareness and may be moving our products from being considered somewhat discretionary to being more of a consumer staple,” he said.

AeroGrow also disclosed that it retained investment bank Stifel Financial Corp. (NYSE: SF) as an adviser for a “broad review of strategic alternatives,” a sign that the company may be looking to sell itself or acquire a competitor at some point in the near future.

© 2020 BizWest Media LLC