Central Garden & Pet Co., a leading innovator, marketer, and producer of quality branded products for the lawn & garden and pet supplies markets, has released its Form 10-Q report for the third quarter. The report provides a comprehensive overview of the company’s financial and operational performance, reflecting the impact of strategic initiatives and market conditions.
Financial Highlights
Net Sales: $617.4 million, a decrease of $39.0 million or 6.0% from the prior year quarter due to timing of shipments and portfolio optimization actions.Gross Profit: $190.6 million, a decrease of $5.1 million or 2.6% from the prior year quarter, with gross margin increasing by 110 basis points to 30.9% due to productivity gains and a favorable sales mix.Operating Income: $16.5 million, a decrease of $11.5 million or 40.9% from the prior year quarter, with operating margin decreasing from 4.3% to 2.7% due to increased selling, general and administrative expenses.Net Income: $6.8 million, down from $14.0 million in the prior year quarter, reflecting the impact of decreased sales and increased expenses.Diluted EPS: $0.11, a decrease from $0.21 in the prior year quarter, consistent with the decline in net income.
Business Highlights
Revenue Segments: The Pet segment reported net sales of $415.8 million, with notable contributions from dog and cat products ($157.0 million) and other pet products ($117.8 million). The Garden segment reported net sales of $201.6 million, with significant sales in other garden supplies ($109.9 million) and wild bird products ($56.1 million).Facility Closures: The company incurred $7.7 million in charges related to facility closures as part of its Cost and Simplicity program, including $7.2 million in the Garden segment and $0.5 million in the Pet segment.Future Outlook: The company anticipates continued focus on optimizing its portfolio and improving operational efficiency. It expects to leverage its recent acquisition of Champion USA LLC to strengthen its position in the animal health segment and enhance its offerings for cattle producers.
SEC Filing: CENTRAL GARDEN & PET CO [ CENT ] – 10-Q – Feb. 05, 2026
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