Hydrofarm Q2 sales fall on industry oversupply - HYFM News | RalliesHydrofarm Q2 sales fall on industry oversupply
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HYFM• Outlook
- Company did not provide specific financial guidance for the current or future periods
Result drivers and key details
- Industry oversupply - Co said Q2 sales decline was mainly due to industry oversupply and discontinuation of certain distributed brands
- Proprietary brand mix - Gross profit margin improved as co sold a higher proportion of proprietary brand products
- Cost saving initiatives - SG&A expense declined from facility cost reductions, lower employee compensation, and administrative cuts
| Metric | Actual |
|---|
| Q2 Sales | $23.21 mln |
| Q2 Net Loss | $10.63 mln |
| Q2 Gross Profit | $2.63 mln |
| Q2 Operating Income | -$7.43 mln |
| Q2 Pretax Profit | -$10.86 mln |
Q2 sales fall on industry oversupply
- U.S. hydroponics equipment maker's Q2 sales fell 41% yr/yr due to industry oversupply
- Gross profit margin improved to 11.3% as proprietary brand sales mix increased
- Net loss narrowed as SG&A expenses dropped 38% from cost-saving initiatives
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