GrowGeneration Stock Falls After Mixed Q2 Results

GrowGeneration Corp GRWG reported second-quarter FY21 sales growth of 190% year-on-year, to $125.89 million, beating the analyst consensus of $111.69 million.
Same-Store Sales for the quarter increased 60% Y/Y to $62.1 million.
Ecommerce revenue increased 263.6% Y/Y to $12 million.
Gross profit rose 208% Y/Y to $35.7 million, and the gross profit margin expanded 170 basis points Y/Y to 28.4%.
Operating expenses jumped 197.4% Y/Y to $26 million.
The operating margin was 7.6%, and operating income for the quarter rose 242% to $9.6 million.
The company held $124.5 million in cash and equivalents as of June 30, 2021.
Adjusted EBITDA of $14.5 million increased 229% Y/Y.
EPS of $0.11 missed the analyst consensus of $0.12.
Due to construction and building delays, it expects the two Southern California and the Ardmore, OK, store openings to occur in Q4.
Outlook: GrowGeneration raised FY21 revenue of $455 million - $475 million (prior $450 million - $470 million), versus the consensus of $459.55 million.
Price Action: GRWG shares traded lower by 11.6% at $38.08 on the last check Thursday.