Aerogrow International, Inc. (AERO) SEC Filing 10-Q Quarterly report for the period ending Sunday, June 30, 2019

Exhibit 99.1

AeroGrow Reports Results for Q4 and the Full Fiscal Year Ended March 31, 2019

Boulder, CO - (June 24, 2019) - AeroGrow International, Inc. (OTCQB: AERO) (“AeroGrow” or the “Company”), the manufacturer and distributor of AeroGardens - the world’s leading family of In-Home Garden Systems™ – announced results for the 4^th Quarter and for the fiscal year (FY) ended March 31, 2019.

For the 4^th Quarter ended March 31, 2019, the Company recorded net revenue of $9.1 million, an increase of 35% over the same period in the prior year.  Income from Operations was $524K, up significantly from $4K in the prior year. For the year ended March 31, 2019, the Company recorded total revenue of $34.4 million, an increase of 6% over the prior year. Income from Operations for the full year period was $6K, up from a loss of $448K in the prior year. FY 2019 represents the first time in the Company’s history that it posted an operating profit.

“I am very pleased with our Q4 results,” said President and CEO J. Michael Wolfe.  “After our disappointing Q3, it was good to see our Q4 sales jump right back up to a strong growth rate of +35%. While our full year results aren’t at the level we have become accustomed to over the past five years, we still posted 6% sales growth and the first operating profit in the Company’s history.

“We are seeing good strength in our fundamental business metrics as well, with our Gross Margin improving by 170 basis points to nearly 35% in FY 2019 and the sale of seed kits continuing to be strong. I’m also pleased to see our Q4 operating income increase to $524K vs. just $4K the year before on a sales increase of 35%. This demonstrates the leverage in our business as we grow and furthers our belief that we are nearing a “tipping point” in our performance.

“The strength of our Q4 also underscored our belief that some of the tactical changes we made to our marketing programs in Q3 weren’t as effective as we had planned and led to our sales weakness being narrowly limited to the period between Cyber Monday and Christmas. We are in the process of addressing our general marketing strategy and I am confident that we will be back this fall with a program that is stronger than ever – one that will be focused on driving broad awareness of the AeroGarden and optimal sell-thru both in-store and on-line.

“Regarding distribution, we continue to have exceptional performance on Amazon and look forward to continued growth on this platform in the coming year. I am also pleased that we will be back both in-store and on-line with all of our key retail partners this year, including Bed, Bath & Beyond, Kohl’s and Macy’s. We are also looking to expand our relationship with several new retailer partners. Finally, our AeroGarden.com business is showing renewed strength in recent months.

“In closing, I think the overall health of the business at the conclusion of FY 2019 is very good – and we are poised for a strong FY 2020. But what I’m most excited about is our innovation. Last year we introduced the new AeroGarden Harvest, which has been met with very high reviews and some of the best customer feedback we’ve ever received. Early this fall we will be introducing an all-new version of the AeroGarden Bounty. The new Bounty will be our most technically advanced AeroGarden ever – and it will be as beautiful as it is functional with a version even available in a ceramic finish. Also this fall we will be introducing a number of new accessory products and exciting new seed kits that will enhance the AeroGarden growing experience. And later this year we plan to announce our biggest and most innovative indoor gardening system ever. Our new system has been four years in development and we believe it will once again create an entirely new category and re-set the bar for innovation and growing indoors.

“I look forward to updating you on our progress throughout Fiscal 2020.”