GrowGen, a hydroponic and organic gardening retailer with a large private label selection, has shared its financial results from Q3 2022.
For the period ended Sept. 30, GrowGen saw net sales decline 39% to $70.9 million compared to one year ago, which the company chalked up to softened demand. Comparable store sales for the quarter decreased 58.1%, with a net loss of $7.2 million compared to net income of $4.0 million last year.
Gross profit was $18.3 million for the third quarter of 2022, compared to $34.1 million for the third quarter of 2021. Gross profit margin was 25.9% compared to 29.4% in the same quarter last year.
“I am proud of how resilient our team has been throughout this year as GrowGen – and the entire hydroponics category – has faced significant industry and economic headwinds,” said Darren Lampert, co-founder and CEO of GrowGen. “In the third quarter of 2022, net sales of $70.9 million outpaced our internal expectations, bolstered primarily by stronger-than-expected demand within our distribution and private label business. During the quarter we generated $8.3 million of positive cash flow from operations as working capital management remains a top priority across the business, and we ended the third quarter with $71.1 million of cash on our balance sheet with zero debt.”
GrowGen operates 58 stores in 14 states, including 22 locations in California alone. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers