Central Garden & Pet Company, a prominent player in the pet and garden industries, has released its financial results for the fourth quarter and fiscal year ending September 27, 2025. The company reported a slight decline in net sales but achieved record earnings per share (EPS) and significant margin expansion.
Financial Highlights
For fiscal year 2025, Central Garden & Pet reported net sales of $3.1 billion, a 2% decrease from the previous year’s $3.2 billion. Despite the decline in sales, the company delivered a GAAP EPS of $2.55, up from $1.62 in fiscal 2024, and a non-GAAP EPS of $2.73, compared to $2.13 in the prior year. The gross margin expanded by 240 basis points to 31.9%, driven by the company’s productivity agenda.
In the fourth quarter, net sales increased by 1% to $678 million, with a notable improvement in gross margin, which expanded by 380 basis points to 29.0%. The company reported a net loss of $10 million for the quarter, an improvement from the $34 million loss in the same period last year.
Business and Operational Highlights
The Pet segment saw a 2% decrease in sales to $1.8 billion, while the Garden segment experienced a 3% decline to $1.3 billion. However, the Garden segment showed strong consumer demand in the fourth quarter, with net sales increasing to $250 million from $234 million in the previous year.
Central Garden & Pet continued to make progress on its Cost and Simplicity agenda, which aims to simplify operations, reduce complexity, and strengthen margins. The company completed its multi-year Supply Network Design project, enhancing customer alignment and increasing cost efficiency across logistics.
Strategic Initiatives and Corporate Developments
During fiscal 2025, Central Garden & Pet closed 16 legacy facilities as part of its strategic initiatives, including the sale of its garden distribution business to the independent channel and the exit from the pottery business. The company also reported a record cash position of $882 million, providing flexibility for future investments and shareholder value returns.
Central Garden & Pet did not repurchase any shares during the fourth quarter, with $46.5 million remaining available for future stock repurchases.
Management’s Perspective
Niko Lahanas, CEO of Central Garden & Pet, commented, “This was a record year on the bottom line, marked by continued margin expansion and disciplined execution of our Cost and Simplicity agenda. Our teams delivered strong profits in Pet and Garden, successfully navigated weather and a fluid macro backdrop, and ended the year with a record cash position, giving us the flexibility to invest in our business and return value to shareholders.”
Future Outlook
Looking ahead to fiscal 2026, Central Garden & Pet expects non-GAAP EPS to be $2.70 or better, reflecting continued margin discipline, cost efficiencies, and portfolio optimization. The company projects capital spending of approximately $50 million to $60 million, focusing on maintenance, productivity, and targeted growth initiatives across both segments.
Original SEC Filing: CENTRAL GARDEN & PET CO [ CENT ] – 8-K – Nov. 24, 2025
Disclaimer
This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.
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