Price-performance
MA Sales Tracker (DEC)
The price compression in MA is a concern, but the growth in overall sales continues to be strong!
Nevada Sales Tracker (OCT)
Grow Generation Lowers Guidance
It should be noted that stronger-than-expected pressures in 4Q21 from the general slowdown in the hydroponics market hurt numbers. THat will likely continue into 2022.
GRWG shares slipped after revised FY2021 revenue expectations of $420M to $422M, down from prior estimates of $455M to $475M and a consensus of $435.31M. Adjusted EBITDA to be between $31.5M to $33.M for the year. 4Q21 revenue expectation is between $88M to $90M vs. consensus of $103.39M. Same-store sales for FY2021 are expected to grow 24.4% and decline 12.3% for the quarter.
GrowGen CEO Darren Lampert. "As we remain focused on our long-term strategy, we continue to use the Company's strong balance sheet and cash flow generation to drive growth by focusing energies and investments on new greenfield stores, business technology, distribution capabilities, private and proprietary brands, and integration of the Company's e-commerce distribution channels. These initiatives, supported by a team-oriented approach, give us confidence in our ability to deliver revenue and EBITDA growth in 2022. We believe the management team in place now is better suited than any other team in the industry to drive profitable growth over the next decade."
Hedgeye: It seems too early in the slowdown to buy the dip.
