Central Garden & Pet Company released its financial results for the third quarter of fiscal 2025, reporting net sales of $961 million, a decrease of 4% compared to the same period in fiscal 2024. Despite the decline in sales, the company achieved a gross profit of $332 million, marking a 5% increase year-over-year. The gross margin expanded by 280 basis points to 34.6%, attributed to productivity improvements from the company's Cost and Simplicity program. The company reported a GAAP net income of $95 million, up from $79.7 million in the previous year, and a non-GAAP net income of $97.9 million, compared to $88.2 million the prior year. GAAP diluted net income per share was $1.52, an increase from $1.19, while non-GAAP diluted net income per share was $1.56, compared to $1.32 in the same quarter of the previous year. Central Garden & Pet Company also provided its fiscal 2025 guidance, expecting non-GAAP EPS to be approximately $2.60. This outlook takes into account expected shifts in consumer behavior due to macroeconomic and geopolitical uncertainties, challenges in the brick-and-mortar retail sector, and uncertainty regarding the garden selling season's duration for the remainder of the fiscal year. The guidance excludes potential impacts from changes in tariff rates, acquisitions, divestitures, or restructuring activities during fiscal 2025. The company is undergoing operational changes, including consolidating two outdated garden distribution facilities in Ontario, California, and Salt Lake City, Utah, into a larger, modern facility in Salt Lake City. This restructuring incurred a charge of $2.2 million in the third quarter. Additionally, the Pet segment faced an incremental charge of $1.7 million due to a shift to a direct export-only model.