(Photo Credit - Chuck Feder)
AeroGrow International, Inc. (OTC:AERO), the manufacturer and distributor of AeroGarden indoor gardening systems – filed a 10-Q with financial results for its first quarter which ended Friday, June 30th, 2017.
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Key Takeaways from AERO's Q1 Financial Results:
AeroGrow recorded net revenue of $2.5 million.
This represents an increase of 14.2% or $307,000 over the same period from 2016.
Retail sales increased by 2.8% to $974,000 during AERO's seasonal low point of the year for in-store and on-line sales.
Direct-to-consumer sales increased 24.8%, to $1.4 million, reflecting a larger installed base of AeroGarden users as well as improved marketing efficacy.
Sales of AeroGarden units increased by 22.7% and seed pod kit and accessory sales increased by 6% over the same period in 2016.
Gross margin was down from 39.1% to 33.4%.
AeroGrow's loss from operations was $728K, compared to $653K in the same period last year.
The increase in loss from operations came in a bit higher than last year as AeroGrow increased advertising-related expenditures, improved infrastructure and added personnel expense in anticipation of growth.
Operating expenses were up 3.6% or 54,000 year-over-year.
AeroGrow's cash position remained strong with over $8.2 million cash on hand as of June 30th and no debt.
AeroGrow added new Canadian retailers going into the holiday season including Hudson's Bay, Canadian Tire, as well as an 'expanded' presence on Amazon's European platforms.
AeroGrow announced that they will be launching "several innovative new products," in the Fall including the AeroGarden Farm (a large and advanced 24-pod model) and the first-ever AeroGarden designed exclusively for kids.
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