Why Scotts Miracle-Gro Stock Was Down on Thursday
Scotts Miracle-Gro (NYSE: SMG) investors lost ground to a falling market on Thursday. Shares were down 6% as of 11 a.m. ET, compared to a 2.4% slump in the S&P 500. The wider market's slide was a factor in Scotts' decline, but investors also have some specific worries about its lawn care and indoor growing businesses.
The main reason for the stock's slump is that recession fears are intensifying. Wall Street sent shares lower across the market for that same reason on Thursday morning. All of the major U.S. indexes were down by 2% or more as traders contemplated the impacts of rising interest rates and a broader pullback in spending by consumers.
Scotts Miracle-Gro was already feeling the pressure from these trends through late September. In early August, management launched a company reorganization initiative after sales declined and profitability shrank.
Source Fool.com
