GrowGeneration Corp (OTCMKTS:GRWG) had an impressive second quarter after it reported YoY revenue growth of 172%.
Impressive Q2 2019 results
The CEO of GrowGen, Darren Lampert indicated that the impressive Q2 results demonstrated the company’s focus on EBITDA expansion and revenue growth. Revenue increased by 172% from Q2 2018 with a positive adjusted EPS of $0.6. Same-store sales also increased by 23% with gross profit margins increasing to 29.9%.
Lampert indicated that the company is currently in the process of rolling out a new ERP platform to add the Michigan, North California, Oklahoma, Rhode Island band Maine stores to the ERP in 2019. The ERP has been designed to enhance departmental productivity, lower costs as well as provide reporting and forecasting tools. The CEO stated that all GrowGen store operation will be on the ERP platform by the end of this year.
GrowGen expects 100% YoY growth
The company’s latest acquisitions and new store opening are all performing optimally and GrowGen has successfully integrated them into company operations. Currently, the company has cash of around $18.0 million which will enable it to continue growing at a 100% YoY rate.
Recently the company appointed former Home Depot CEO, Bob Nardelli as its Senior Strategic advisor to offer advice on issues of strategic partnerships, branding, supply chain, channel selection as well as new product introductions.
GrowGen raised its revenue guidance for this year to around $65 million to 70 million and adjusted EBITDA to $0.14 to $0.18.
GrowGen is a specialty hydroponic chain that owns and operates organic gardening stores. Currently, the chain has 23 gardening stores across the US which include 5 in California, 4 in Colorado, 3 in Michigan, 3 in Maine, 2 in Nevada, 1 in Washington, 1 in Rhode Island and 1 in New Hampshire. Equally the company operates online superstores for growers located at HeavyGarden.com.
The company sells a wide variety of products which include organic nutrients and soils, advanced lighting technology and hydroponic equipment for outdoor and indoor use for both commercial and home cultivators.