GrowGeneration, one of the largest hydroponic and garden center chains, released its financial results from Q3 of 2021. The results show that the company’s private label sales were a significant driver of growth for the quarter, continuing what has been a successful 2021.
Revenues rose 111% to $116.0 million for Q3 of 2021, versus $55.0 million for the same period last year. Private label sales, including Power Si and Char Coir, were 8.7% of revenue, compared to 2.1% for the same period last year.
Same-store sales at 25 locations open for the same period in 2020 and 2021 were $59.2 million in third quarter 2021, versus $51.2 million for third quarter 2020, a 15.7% increase year over year. E-commerce revenue, inclusive of Agron revenue, was $10.5 million, compared to $3.9 million for the same period last year.
“The GrowGen team delivered a strong third quarter, with revenues up 111%, compared to the same period last year in a difficult macro environment,” said Darren Lampert, GrowGen’s co-founder and CEO. “Same-store sales at 25 locations increased 15.7% from the prior year. At present, we have 62 retail locations in operation. We increased our inventory positions across all key product categories to get ahead of price increases, as well as expanded more private label purchases. Our private-label and proprietary products reached approximately 8.7% of our overall sales in the third quarter. Our online marketplace, including Agron, is on pace to reach $35 million of revenue for 2021. We opened two locations in the Los Angeles metro area, and for next year, we are looking to open 15 to 20 locations."
Net revenue for the nine months ended Sept. 30, 2021, was $331.9 million, compared to $131.4 million for the nine months ended Sept. 30, 2020, an increase of $200.5 million or 153%. Gross profit margin was 28.7% for the nine months ended Sept.30, 2021 compared to 26.7% for the nine months ended Sept. 30, 2020.
In Q3, GrowGen made several moves to expand the company’s assets. In July, the company acquired the assets of Aqua Serene, Inc., an indoor/outdoor garden center with stores in Eugene and Ashland, Oregon, as well as the assets of Mendocino Greenhouse & Garden Supply, Inc, a hydroponic garden center located in Mendocino, California. In August, GrowGen purchased the assets of Commercial Grow Supply, Inc., consisting of a hydroponic and garden supply center serving the Santa Clarita, California area, as well as the assets of Hoagtech Hydroponics, Inc., consisting of a hydroponic and garden supply center serving the Bellingham, Washington area.