(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. 

Related: 5 Key Takeaways from Scotts Miracle-Gro's Financials
 

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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