GrowGeneration (GRWG) – Get Report shares rose on Monday after the Denver supplier of hydroponic and specialty natural backyard merchandise estimated that fourth-quarter and full-year 2020 income greater than doubled.
Full-year income reached $192 million from $80 million in 2019, the corporate estimated. Fourth-quarter income leaped to $61.5 million in 2020 from $25.4 million in 2019.
Identical-store gross sales jumped 63% for the complete 12 months and 58% for the fourth quarter, each from a 12 months earlier.
GrowGeneration’s shares not too long ago traded at $50.80, up 12%. They’re up by an element of greater than 10 over the previous 12 months.
The corporate added 14 new and purchased retailer places in 2020, rising places nationwide to 39 in 11 states. This 12 months it expects to extend that quantity to 55.
The income efficiency “got here by way of strategic acquisitions of best-in-class hydroponic shops, distinctive same-store gross sales development, and the growth of our omnichannel and private-label choices – a technique we’ll speed up this 12 months,” Chief Govt Darren Lampert mentioned in an announcement.
“We anticipate vital income development within the 12 months forward as we proceed to execute on these initiatives.
“Accordingly, we’ve raised our 2021 income steering to $335 [million] to $350 million [and] 2021 adjusted-Ebitda steering to $38 million to $40 million.”
In August, Oppenheimer boosted its value goal on GrowGeneration to $25 from $15, holding its outperform score. Stifel initiated protection with a purchase score and $22 value goal.
Oppenheimer analyst Brian Nagel mentioned in a word to shoppers that GrowGeneration is a number one, but nonetheless up-and-coming, retail chain within the quickly increasing marketplace for hydroponic and natural gardening provides.