GRWG - GrowGeneration stock plunges after Q1 earnins miss and guidance cut

GrowGeneration (NASDAQ:GRWG) shares slipped around 18% after Q1 earnings fell short of consensus, followed by outlook cut. Net sales declined 9.2% Y/Y due to softer industry demand. Comparable store sales fell 35.5% Y/Y but on a two-year basis, same-store sales increased 7.3% vs. 1Q20. Gross profit margin decreased approximately 110 bps to 27.1%, due to lower net sales, fewer rebates, and increased obsolescence and shrinkage costs in the quarter Y/Y. Adjusted EBITDA was a loss of $0.7M vs. $11.1M year ag CEO comment: “We expect the revenue and gross profit headwinds in the first quarter will become more pronounced in the second quarter, with the remainder of 2022 facing more pressure than we initially planned. While the industry is experiencing a prolonged period of softer demand, we remain confident in the longer-term opportunity that exists within hydroponics. GrowGen remains on solid financial footing, and we firmly believe we are well

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GrowGeneration stock plunges after Q1 earnins miss and guidance cut