Jersey brand

GrowGeneration (GRWG) expands base with 1st store in New Jersey – November 23, 2022

Grow Generation Corp. (GRWG Free Report) announced the opening of a store in Mount Holly, NJ. The store will mark GRWG’s foray into the New Jersey market and its 60th store overall. This will officially increase the number of states in which the company operates, to 16.

Located in Mount Holly, the store is a sprawling 7,700 square feet and will include vertical farming demonstrations. It will also support growers educationally by helping them build and maintain state-of-the-art growing operations to maximize their yields.

Given its strong medical patient base as well as pending legislation that will allow home cultivation of cannabis, GrowGeneration expects the New Jersey region to develop strong prospects in the coming years. The opening of this store is in line with GRWG’s strategy to expand into fast growing and strategically important markets.

GRWG had previously mentioned its desire to continue the National Social Equity Licensee Education and Training Program in cooperation with Harvest 360. As GrowGeneration expands, it will maintain this program in its new store. It will provide operators and their communities with high quality support and solutions.

GrowGeneration is a large chain of specialty hydroponic and organic garden centers based in the United States. GRWG plans to open more stores in high potential untapped geographies.

In the third quarter of 2022, net sales of GrowGeneration decreased by 39% due to weak demand. Same-store sales for the quarter fell 58.1%, while GRWG posted a loss of 12 cents per share. After the third quarter results, the forecast for 2022 earnings is set between $270 million and $280 million. GRWG had reported revenue of $422.5 million in 2021.

Price performance

GRWG shares are down 67.2% over the past year, compared to a 3.6% decline for the industry.

Image source: Zacks Investment Research

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