Ahead of the Virtual ICR Conference 2021, being held from Monday, January 11, hydroponic chain GrowGeneration Corp. (NASDAQ: GRWG) released preliminary record full-year 2020 revenue of $192 million, versus $80 million for 2019, an increase of 140%. The company also said that its fourth-quarter 2020 revenue rose 142% to $61.5 million, versus $25.4 million for the fourth quarter of 2019.
In addition to that, GrowGen reported that same-store sales were up 63% for full-year 2020 versus full-year 2019. Same-store sales were up 58% for the fourth quarter of 2020 versus the fourth quarter of 2019. A total of 14 new and acquired store locations in 2020, increasing locations nationwide to 39.
“We delivered strong shareholder value in 2020, with triple-digit revenue growth despite unprecedented challenges and an uncertain environment. This growth came through strategic acquisitions of best-in-class hydroponic stores, exceptional same-store sales growth, and the expansion of our omnichannel and private label offerings – a strategy we will accelerate this year,” said GrowGen CEO Darren Lampert. “We expect significant revenue growth in the year ahead as we continue to execute on these initiatives. Accordingly, we have raised our 2021 revenue guidance to $335 – $350 million, our 2021 adjusted EBITDA guidance to $38 million – $40 million, and increased the number of projected GrowGen store locations to 55.”
The four analysts covering GrowGen have an average price target of $36 according to Yahoo Finance. The stock was lately trading at $45, near its 52-week high of $48.
Since 2014, GrowGen has acquired 34 stores and opened 16 new stores. The company has identified Ohio, Illinois, Pennsylvania, New York, New Jersey, Massachusetts, and Missouri as new markets where it plans to open new operations. On August 10, 2020, it acquired the assets of Benzakry Family Corp, d/b/a Emerald City Garden, in Concord, Ca. On October 12, 2020, the company acquired the assets of Hydroponics Depot, LLC, a single store located in Phoenix, Arizona. On October 20, 2020, the company acquired the assets of Big Green Tomato, a two-store chain in Battle Creek and Taylor, Michigan. On November 17, 2020, the company acquired the assets of The GrowBiz, which we believe is the third-largest chain of hydroponic garden centers in the United States, with four stores in California and one store in Oregon. In connection with the GrowBiz acquisition, Ross Haley, the founder of The GrowBiz and the former CEO of Hawthorne Gardening Company, a Division of Scott’s Miracle-Gro, joined the Company as a senior strategic advisor.