Scotts Miracle-Gro's biggest challenge: Overcoming young homeowners who are OK with dandelions in their lawn

Scotts Miracle-Gro's biggest challenge: Overcoming young homeowners who are OK with dandelions in their lawn

Brian Sozzi · Executive Editor

Mon, August 31, 2026 at 4:57 PM GMT+3 3 min read

• SMG -1.55%

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With roots dating back to 1868, Scotts Miracle-Gro (SMG) faces a future that hinges on getting a nonchalant Gen Z crowd to pay to fertilize their lawns, just like their proud green-lawn-owning parents.

New CEO Nate Baxter realizes the hill to climb is steep and chock-full of roadblocks, such as more people buying Astroturf for lawns or putting stones where grass once lived — and needing water to do so.

"So our core consumer that has been with us for decades. They're homeowners or renters who care about their lawn. They are dedicated. And they care about weeds — they don't want them. They want the perfect lawn story," Baxter said in a new episode of the Power Players with Brian Sozzi podcast (watch above; listen in below). "What we are seeing with the next generation of consumer is a real interest in going natural. They don't mind an occasional dandelion in their lawn."

Baxter said Scotts has released new fertilizer in recyclable paper bags and all-natural lawn food to cater to this finicky crowd. He promises a push into products that could help people connect with the health of their lawn's soil.

He added, "If I harken back to our grandparents' era, the next-gen consumer, they just want a space that's fun and safe and good enough."

Scotts has had to work through several challenges in recent years in addition to dealing with changing consumer preferences. Its former longtime CEO built up excess fertilizer inventory during the lawn-care boom of the COVID-19 pandemic. The company also made a push into cannabis care products that didn't work out as planned.

Baxter — who was the company's COO before getting the top job — moved quickly earlier this year to unload the cannabis products business. He's also continuing to fine-tune the product portfolio and allocate more dollars to R&D.

Scotts Miracle-Gro stock is up about 4% this year, after falling a stunning 63% in the past five years.

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At an investor day earlier this month, Scotts Miracle-Gro laid out a relatively steady growth outlook for fiscal 2027 through 2029.

The company is targeting average annual sales growth of 2% to 4%, 50 to 100 basis points of adjusted gross margin expansion, and 5% to 8% adjusted EPS growth.

It also expects to generate more than $275 million in free cash flow and use its cash to bring down its pile. The company has also authorized a $500 million stock buyback plan.

"At the end of the day, we believe in our business," Baxter said. "And so I think a combination of getting debt paid down, investing in the business, bringing new products to market, I'm comfortable that investors will see the value in the stock in the future."

Brian Sozzi is Yahoo Finance's Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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