BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation of The Scotts Miracle-Gro Company (“Scotts” or the “Company”) (NYSE: SMG) on behalf of investors concerning the Company’s possible violations of federal securities laws.
On June 8, 2022, Scotts announced that replenishment orders from its U.S. retailers were more than $300 million below target in the month of May, 2022, and disclosed 2022 full-year earnings would be roughly half of its prior guidance. The Company also announced plans to take on additional debt to cover restructuring charges as it attempted to cut costs. Analysts were shocked by the announcement, with one report by Truist commenting that, “[w]e have not seen anything similar occur in the 20 years we have covered [Scotts].”
On this news, the price of Scotts common stock declined by $9.05 per share, or 8.9%, to close at $93.13 per share on June 8, 2022, thereby injuring investors.
On August 2, 2023, the Company disclosed disappointing financial results, revealing that the Company’s quarterly sales for its fiscal third quarter of 2023 declined by 6%, and that gross margins fell by 420 basis points in the same period. The Company also announced a 25% reduction in fiscal year EBITDA guidance, and a $20 million write down of “pandemic driven excess inventories.” The Company also disclosed that it had to increase its debt covenants to 7.00 times debt-to-EBITDA ratio.
On this news, the price of Scotts common stock declined by $13.58 per share, or 19%, to close at $57.86 per share on August 2, 2023, thereby injuring investors further.
If you purchased Scotts securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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