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Why GrowGeneration Corp. (GRWG) stock is gloomy today?

Shares of the GrowGeneration Corp. (GRWG) stock were gloomy today following the announcement of the third quarter of 2021 financial results. GRWG stock price saw a downtrend of 10.24% to drop at $20.91 a share at the time of this writing. The trading volume on the last check was 814,179, lower than the average trading volume.

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GrowGeneration Corp runs its business via operating retail hydroponic and organic gardening stores in the United States of America. The stock has a current market value of $1.31 billion and a 1,883,206 average trading volume.

Third Quarter 2021 Financial Results:

  • GRWG stock generated $116.0 million in the reported quarter which represents an increase of 111% as compared to $55.0 million in the same period of the previous year.
  • The company recorded $59.2 million from the same-store sales at 25 locations in the reported quarter. This represents an increase of 15.7% year over year as compared to $51.2 million in the same quarter of last year.
  • The gross margin for the GRWG stock in the third quarter of 2021 was 29.4% representing a 290 basis points increase as compared to 26.5% gross margin in the same quarter of last year.
  • GrowGeneration stock recorded $5.1 million GAAP net income before tax in the reported quarter. In the same quarter of the previous year, GAAP net income was $5.1 million for the stock.
  • Net income in the reported quarter was $4.0 million, or $0.07 per share based on a basic share count of 58.5 million.
  • Private label sales significantly increased to 8.7% of the revenue in the third quarter of 2021 as compared to 2.1% in the same tenure of the previous year.
  • Ecommerce revenue jumped from $3.9 million in the third quarter of 2020 to $10.5 million in the third quarter of 2021.
  • By the end of the third quarter of 2021, GRWG stock had $93.0 million in cash and short-term securities.

Nine Months Performance of GRWG stock:

GRWG stock generated $331.9 million in revenue in the first nine months of 2021. This compares to $131.4 million in revenue in the same tenure of the previous year. The gross margin for the GRWG stock was 28.7% in the first nine months of 2021 as compared to 26.7% in the same tenure of the previous year.Net income in the first nine months of 202 was $16.9 million, higher than $3.8 million in the same tenure of the previous year. Adjusted EBITDA reached $36.3 million in the first nine months of 2021.

Wrap Up:

The sentiment is not positive for GRWG stock in the stock market despite recording strong revenues in the third quarter of 2021. The performance in 2021 is not so much satisfaction as GRWG stock lost almost 47% year to date.

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