AeroGrow International, Inc. (OTCMKTS:AERO) released financial report for the fourth quarter and Fiscal ending March 31, 2015. The annual revenue surged 92% to $17.9 million compared to last fiscal. The revenue in the fourth quarter surged 37% YOY to $3.6 million. Adjusted EBITDA in the fiscal came at $609,000 compared to $798,000 in the prior year period.

The management view

Michael Wolfe, the CEO and President, stated that the core strategic objective for FY2015 was to record strong growth while registering a modest EBITDA profit. The results are a strong confirmation of this approach.

The growth in the year was driven mainly by strong sales in Retail distribution network, both in-store and on-line, which increased more than 200% YOY. AeroGrow continued to record strong performance with its on-line retail partners, including, Amazon,,, and many others. The growth recorded in the on-line channel accelerated in last quarter of FY2015, with sales at Amazon surging over 270% YOY in the March quarter.

The measures

AeroGrow International, Inc. (OTCMKTS:AERO) performed in-store tests with different products at variable price points and in different geographies and demographics. These tests included Walmart, Costco, and several others and the results differed widely. Mr. Wolfe added that they learned significantly from these tests and have designed a strategy to drive promotions, pricing, product placement, and other elements so as to successfully establish a strong in-store plan over time.

AeroGrow’s direct-to-consumer network generated 21% growth YOY. The management is quite delighted with this growth, after numerous years of drop in this channel, particularly provided all of the retail distribution company opened up. The CEO said that these additional distribution activities helped the company to record more total sales.

In last trading session, the stock price of AERO consolidated to close flat at $2.60. The traded share volume was 53,130 compared to average share volume of 10,946.