Central Garden & Pet Reports 4% Decline in Net Sales, 5% Increase in Gross Profit; EPS Rises to $1.52

Reuters
Aug 14
Central Garden & Pet Reports 4% Decline in Net Sales, 5% Increase in Gross Profit; EPS Rises to $1.52

Central Garden & Pet Company reported its fiscal 2025 third-quarter financial results, highlighting a decrease in net sales to $960.9 million, down 4% from the previous year. Despite the decline in sales, the company saw a 5% increase in gross profit, reaching $332 million, with gross margin expanding by 280 basis points to 34.6%, attributed to productivity efforts from their Cost and Simplicity program. GAAP net income for the three months ended June 28, 2025, was $95 million, up from $79.7 million during the same period in 2024. Non-GAAP net income for the quarter was $97.9 million, compared to $88.2 million in the previous year. GAAP diluted net income per share increased to $1.52 from $1.19, while non-GAAP diluted net income per share rose to $1.56 from $1.32. The company continues to expect fiscal 2025 non-GAAP EPS to be approximately $2.60. This outlook reflects anticipated shifts in consumer behavior amid broader macroeconomic and geopolitical uncertainties, challenges within the brick-and-mortar retail landscape, and uncertainty about the duration of the garden selling season for the remainder of the fiscal year. Significant operational updates include the consolidation of two outdated garden distribution facilities in Ontario, California, and Salt Lake City, Utah, into a larger, modern facility in Salt Lake City, incurring a charge of $2.2 million to the Garden segment. Additionally, the Pet segment faced an incremental charge of $1.7 million due to a shift to a direct export-only model.

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