# The Scotts Miracle-Gro Company

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/The Scotts Miracle-Gro Company).

## Overview

Scotts Miracle-Gro is a U.S.-based consumer lawn and garden company organized around branded products for outdoor and indoor growing. Its portfolio spans lawn fertilizer, grass seed, soil, plant food, weed and pest control, rodent control, and hydroponic gardening inputs sold primarily in North America.

## Products & services

• Lawn fertilizer and grass seed under Scotts and Turf Builder
• Soil, plant food and gardening products under Miracle-Gro
• Weed, pest and disease control under Ortho and Roundup
• Rodent control and animal repellent under Tomcat
• Indoor and hydroponic nutrients, lighting and materials via Hawthorne

- **Lawn Care** (55%) — Fertilizers, grass seed, spreaders, and lawn-related weed/pest control products.
- **Garden Care** (20%) — Soils, plant food, and gardening products sold under Miracle-Gro and related brands.
- **Pest and Rodent Control** (15%) — Consumer herbicide, pesticide, rodent control, and animal repellent products.
- **Hawthorne Indoor and Hydroponic** (10%) — Nutrients, lighting, purification systems, and grow materials for indoor cultivation.

- Lawn fertilizer and grass seed under Scotts and Turf Builder
- Soil, plant food and gardening products under Miracle-Gro
- Weed, pest and disease control under Ortho and Roundup
- Rodent control and animal repellent under Tomcat
- Indoor and hydroponic nutrients, lighting and materials via Hawthorne

## Customers

The company sells primarily through large home improvement retailers and other mass-market channels that serve homeowners and gardeners. It also serves indoor and hydroponic growers through Hawthorne, including commercial and specialty customers that need cultivation inputs and equipment. Demand is tied to seasonal lawn and garden activity, retailer inventory planning, and consumer purchases at the point of use.

- **Large home improvement retailers** (primary) — The Home Depot and Lowe's buy branded lawn, garden, and pest-control products for resale to consumers.
- **Homeowners and gardeners** (primary) — End consumers purchase fertilizers, seed, soil, and weed/pest control for lawns and gardens.
- **Indoor and hydroponic growers** (secondary) — Specialty growers buy nutrients, lighting, and grow media through Hawthorne for controlled-environment cultivation.
- **Live plant and garden-center channels** (secondary) — Customers tied to Bonnie Plants and related live-plant distribution buy for seasonal garden merchandising.

- Home improvement chains such as The Home Depot and Lowe's
- Homeowners buying lawn, garden, and pest-control products
- Indoor and hydroponic growers using Hawthorne inputs
- Retailers that stock seasonal spring and summer lawn products
- Consumers seeking branded products with recognized performance

## Geography

The core business is concentrated in North America, especially the United States, with Canada included in the Other segment. Hawthorne serves indoor and hydroponic gardening customers in North America, while some branded products are also distributed in specified countries outside the U.S. Geography matters because the business is highly seasonal and tied to spring and summer retail sell-through in its main markets.

- **United States** (0%) — No country-level revenue split was disclosed in the provided excerpts.
- **Canada** (0%) — Included in the Other segment; no revenue percentage disclosed.
- **North America** (0%) — Primary operating geography for consumer and Hawthorne businesses.

- United States is the main market for consumer lawn and garden products
- Canada is included in the Other segment for consumer lawn and garden sales
- North America is the core operating region for Hawthorne indoor gardening
- Certain Roundup-branded products are marketed in the U.S. and specified countries
- Seasonality is strongest in spring and summer retail selling periods

## Strategy

The company’s strategy centers on brand strength, retailer relationships, product innovation, and execution in seasonal categories where shelf space and timing matter. It also uses Hawthorne to participate in indoor and hydroponic gardening, broadening the portfolio beyond traditional consumer lawn and garden products. Maintaining service levels, supply chain reliability, and consumer demand visibility is important because retailer orders are concentrated around the spring selling season.

- **Strengthen branded consumer lawn and garden leadership** (medium-term) — Brand recognition and retailer relationships are central to shelf placement and repeat purchase behavior.
- **Manage seasonal inventory and retailer replenishment** (short-term) — Most sales occur in the spring and summer selling window, so timing and availability drive results.
- **Expand indoor and hydroponic gardening through Hawthorne** (medium-term) — This diversifies the business into controlled-environment cultivation inputs and equipment.

- Defend premium brands through product performance and consumer trust
- Win shelf space and retailer support at major home improvement chains
- Use innovation across seed, fertilizer, pest control, and grow inputs
- Support seasonal sell-in and sell-through with supply chain execution
- Develop Hawthorne as a separate indoor and hydroponic growth platform

## Risks

The business is exposed to customer concentration, seasonal demand swings, and retailer inventory decisions because a small number of large chains account for a large share of sales. It also faces competitive pressure, cyber and e-commerce execution risk, and input-cost or trade-policy volatility that can affect product availability and margins. As a branded consumer products company, it is also sensitive to product safety, regulatory compliance, and the performance of marketing and promotional spending.

- **Customer concentration at major retailers** [high] — The Home Depot and Lowe's are the two largest customers and together represent a large share of sales.
- **Seasonal demand concentration** [high] — More than 75% of annual net sales occur in the second and third fiscal quarters combined.
- **Cybersecurity and e-commerce disruption** [medium] — Website downtime, breaches, and technology failures can hurt online sales and brand reputation.
- **Trade policy and supply chain disruption** [medium] — Tariffs, geopolitical uncertainty, and logistics issues can affect sourcing and product availability.

- High dependence on The Home Depot and Lowe's
- Seasonal sales concentration in spring and summer quarters
- Retail inventory reductions can quickly affect shipments
- Cybersecurity and e-commerce platform failures can disrupt sales
- Tariffs, inflation, and supply chain issues can raise costs

## Accounting

Revenue is recognized at a point in time when products are delivered or picked up, and reported sales are reduced by promotional allowances, rebates, and expected returns. Seasonality is important because quarterly results are not comparable across the year, with most sales concentrated in the spring selling season. Investors should also watch goodwill and indefinite-lived intangible assets, as well as estimates tied to promotional programs, taxes, and derivative instruments used for market-risk management.

- **Revenue recognition and promotional allowances** — Affects reported revenue and quarterly comparability
- **Seasonality and quarterly revenue concentration** — Can distort quarter-to-quarter trend analysis
- **Goodwill and indefinite-lived intangible assets** — Could create non-cash impairment charges if fair values decline
- **Derivatives and hedging** — Can affect earnings and other comprehensive income

- Point-in-time revenue recognition on product delivery or pickup
- Promotional allowances and rebates reduce reported net sales
- Expected returns and allowances rely on historical estimates
- Goodwill and indefinite-lived intangibles require impairment testing
- Derivatives are used for interest, FX, and commodity risk management

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*Last updated: 2026-09-24T11:31:45.188805+00:00*
