Central Garden & Pet Company has released its financial results for the third quarter of fiscal 2025. The company reported net sales of $961 million, representing a 4% decrease compared to the same period in 2024. Despite the decline in sales, gross profit increased by 5% to $332 million, with gross margin expanding by 280 basis points to 34.6%, driven by the company's productivity efforts through its Cost and Simplicity program. The company's GAAP net income for the quarter was $95.007 million, up from $79.724 million in the same period last year. Non-GAAP net income stood at $97.919 million, an increase from $88.249 million in the previous year. GAAP diluted net income per share was reported at $1.52, rising from $1.19 in the prior year, while non-GAAP diluted net income per share increased to $1.56 from $1.32. Looking ahead, Central Garden & Pet Company continues to expect its fiscal 2025 non-GAAP EPS to be approximately $2.60. This guidance reflects anticipated changes in consumer behavior amid ongoing macroeconomic and geopolitical uncertainty, challenges within the brick-and-mortar retail landscape, and potential variations in the garden selling season for the remainder of the fiscal year. In terms of business operations, the company is moving to a direct export-only model, which resulted in an incremental charge of $1.7 million in the Pet segment during the third quarter. Additionally, the Garden segment incurred a charge of $2.2 million due to the consolidation of two outdated distribution facilities into a larger facility in Salt Lake City.