Scotts Miracle-Gro said it expects sales of its Hawthorne unit, which includes marijuana cultivation supplies, to decline 40%-45% for the fiscal year ending Sept. 30, a pessimistic turn from comments only weeks ago.
The lawn and garden giant said just last month that Hawthorne Gardening Co. sales had begun to show signs of strengthening.
“The changes we have seen since our last public comments in early May are clearly not what we would have expected,” Scotts Chair and CEO Jim Hagedorn said in a Wednesday news release.
“The revised guidance we are providing is our best estimate of where things currently stand in a fluid and rapidly evolving market.”
Indeed, Scotts has seen the unit experience volatility for much of the year.
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In January, Scotts announced that the first-quarter sales of the Hawthorne hydroponic business was expected to decline by 40% because of a cannabis market slowdown and supply-chain disruptions.
Despite the uncertainty, Hawthorne had been on a cannabis buying binge that included a $215 million acquisition of Los Angeles-based Luxx Lighting, a leading provider of lighting systems for growers.