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Dive Brief:
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Grove Collaborative reported Tuesday that its fourth-quarter revenue fell 17.3% year over year to $49.5 million. From the previous quarter, revenue was up 2.5%, marking the company’s first sequential quarterly revenue increase in three years, according to CEO Jeff Yurcisin.
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Losses grew during the quarter, with operating loss up about 5% year over year to $8.3 million and net loss up more than 30% to $12.6 million.
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For the full year, revenue was $203.4 million, a 21.5% decline from the prior year, which Grove attributed to fewer DTC orders. Both operating and net losses narrowed in 2024, reaching $22.5 million and $27.4 million, respectively.
Dive Insight:
Grove Collaborative’s leaders this week said the company is in the final stages of a multiyear turnaround, which includes a pivot away from wholesale partners like Target and a focus on acquiring third-party brands.
Building out its portfolio of brands further, Grove on Tuesday announced the acquisition of health and wellness company 8Greens, per the company. Financial terms of the deal were not disclosed.
“As a retailer, we at Grove are dedicated to being the destination for conscientious consumers who want the best for themselves, their families, and the planet,” Yurcisin said in a statement. “This acquisition expands our owned brand product offering and helps us better educate the Grove customer to serve their needs.”
Dawn Russell, who founded 8Greens alongside James Russell, will join Grove as a consultant. 8Greens’ products will be sold online through Grove’s marketplace starting in April and on existing platforms, including the brand’s website, Amazon and QVC.
The 8Greens deal comes on the heels of Grove announcing the acquisition of Grab Green, which offers sustainable, non-toxic cleaning products. Since the fourth quarter of 2023, Grove has increased the number of third-party brands sold on its e-commerce platform by 30%.
“Both Grab Green and 8Greens align with our values and commitment to sustainability, innovation and personal health and we're excited to integrate these brands into the Grove family,” Yurcisin said during a Tuesday earnings call, according to a transcript. “We believe acquisitions can enhance our competitive positioning and drive long-term value creation for our shareholders.”