By Senad Karaahmetovic

Scotts Miracle-Gro shares (NYSE:) have fallen nearly 14% since the company lowered its guidance for revenue and adjusted earnings for full-year 2022.

Adjusted EPS now ranges between $4.50 and $5.00. This is a significant miss in comparison to the $7.25 anticipated, but also significantly less than the $8.00.

“The changes we have seen since our last public comments in early May are clearly not what we would have expected,” said Jim Hagedorn, chairman and chief executive officer.

“The revised guidance we are providing is our best estimate of where things currently stand in a fluid and rapidly evolving market. We are working hard to achieve the best fiscal outcome in 2022. However, we now have our eyes on the future. We are committed to taking decisive steps to improve our margins and cash flow in fiscal 2023 and get the business back to a level of performance that our shareholders rightfully expect.”

According to the company, U.S. consumer sales will decline by between 4% to 6% and Hawthorne sales are expected to drop 40% to 45% in the year to September 30, 2022.

“Entering May, Hawthorne sales had begun to show signs of strengthening but momentum in the business slowed again during the month as expected improvement in outdoor cultivation has been slow to materialize.”

SMG also said it is holding “highly productive discussions” with its lenders.