AeroGrow posts profit on soaring revenues

BOULDER — AeroGrow International Inc. (OTCQB:AERO), a Boulder-based manufacturer and distributor of indoor-gardening systems, saw revenues spike 267% year-over-year during the firm’s first quarter and turned what was a loss in Q1 last year into a net profit.

The company recorded net income of $2.6 million on $16.4 million in sales during the most recent period, up from a loss of $1 million on $4.5 million in sales in Q1 2019.

“Our first quarter results were exceptional by every measure,” AeroGrow CEO J. Michael Wolfe said in a prepared statement. “Sales across all three of our distribution channels — Amazon, direct-to-consumer and retail — were extremely strong throughout the quarter. This is our third consecutive quarter with record sales and profitability, and we saw further acceleration of our results due to the COVID-19 pandemic beginning in March. This was driven by increased interest in gardening, at-home meal preparation and access to fresh, safe food sources.”

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This week, AeroGrow announced it is taking a $7.5 million loan from its majority investor Scotts Miracle-Gro Co. (NYSE: SMG).

“We believe the combination of our strong balance sheet and working capital line will support our efforts to have sufficient inventory for the upcoming season and take full advantage of additional upside opportunities that may present themselves,” Wolfe said.

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