Central Garden & Pet Reports 4% Drop in Net Sales, 5% Increase in Gross Profit, and Higher EPS for Q3 2025

Reuters
Aug 20
Central Garden & Pet Reports 4% Drop in Net Sales, 5% Increase in Gross Profit, and Higher EPS for Q3 2025

Central Garden & Pet Company has released its financial results for the third quarter of fiscal 2025, reporting a net sales decrease of 4% to $961 million compared to the same period in fiscal 2024. Despite the decline in sales, the company experienced a 5% increase in gross profit, reaching $332 million. The gross margin expanded by 280 basis points to 34.6%, attributed to productivity efforts from the company's Cost and Simplicity program. The company's GAAP net income for the quarter was $95.007 million, up from $79.724 million in the third quarter of fiscal 2024. Non-GAAP net income also increased, reaching $97.919 million, compared to $88.249 million in the prior year period. GAAP diluted earnings per share $(EPS)$ rose to $1.52 from $1.19, while non-GAAP diluted EPS increased to $1.56 from $1.32. Central Garden & Pet Company continues to anticipate fiscal 2025 non-GAAP EPS to be approximately $2.60. This guidance considers expected shifts in consumer behavior amid macroeconomic and geopolitical uncertainties, challenges in the brick-and-mortar retail landscape, and uncertainty regarding the duration of the garden selling season. The company also undertook significant operational changes, such as consolidating outdated garden distribution facilities in Ontario, California, and Salt Lake City, Utah, into a larger, modern facility in Salt Lake City, incurring a charge of $2.2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 in the Garden segment during the third quarter.

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