Central Garden & Pet Company Stock Earnings Reports

Central Garden & Pet reported Q1 FY2026 net sales of $617M, down 6% year-over-year, driven primarily by seasonal shipment timing shifts (mostly in Garden), ongoing portfolio optimization (exiting lower-margin SKUs and businesses), and a temporary shipment hold with a large pet customer. Despite lower sales, non-GAAP gross margin expanded 100 bps to 30.8% driven by productivity and mix; non-GAAP diluted EPS was $0.21 (GAAP EPS $0.11). The company completed supply-chain network consolidations during the quarter and closed the small tuck-in acquisition of Champion USA after quarter-end. Management emphasized that much of the heavy lifting on cost and simplicity is complete and they are pivoting toward a multi-year growth agenda focused on innovation, digital/e‑commerce, private label, and selective M&A. Balance sheet remains strong: cash & short‑term investments of $721M, total debt $1.2B, gross leverage ~2.9x and net leverage ~1.2x; repurchased ~660k shares ($18.5M) in the quarter. Company reaffirmed FY26 non-GAAP diluted EPS guidance of $2.70+ and expects CapEx of ~$50–60M. Management noted approximately $20M of incremental tariff exposure for the year (Pet concentrated) and intends to mitigate via pricing, portfolio and supply-chain actions. Garden selling season is still ahead; management says retail support and distribution points are up and they are positioned to benefit if spring weather is favorable.