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GrowGeneration Corp. (GRWG) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details two major business segments: Cultivation and Gardening, and Storage Solutions. The Cultivation and Gardening segment focuses on hydroponic and organic gardening products, while the Storage Solutions segment provides customized storage solutions.
Net sales for the year totaled $188.9 million, a decrease from $225.9 million in the previous year. The decline was attributed to the closure of 19 retail locations and industry pricing compression.
Cost of sales was $145.1 million, resulting in a gross profit of $43.7 million. The gross profit margin decreased to 23.1% from 27.1% in the prior year.
Operating expenses were $95.7 million, down from $111.1 million the previous year. The decrease was due to reduced store operations costs following the closure of retail locations.
The company reported a net loss of $49.5 million, compared to a net loss of $46.5 million in the prior year.
GrowGeneration implemented a strategic restructuring plan in 2024, focusing on long-term profitability and growth in proprietary brands, commercial sales, and e-commerce. The plan included consolidating underperforming retail locations and workforce reductions.
Restructuring and related costs amounted to $2.4 million, with expected total charges of $2.7 million. The company anticipates annualized cost savings of approximately $12.0 million from the restructuring.
As of December 31, 2024, GrowGeneration had cash, cash equivalents, and marketable securities totaling $56.5 million. The company repurchased 2.5 million shares of its common stock under a $6.0 million share repurchase program.
The company identified a material weakness in its internal control over financial reporting related to its Storage Solutions segment. A remediation plan is underway to address these issues.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the GrowGeneration Corp. annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.