Central Garden & Pet Company Stock Earnings Reports

Central Garden & Pet reported fiscal 2026 Q1 net sales of $617 million, down 6% year-over-year, driven primarily by seasonal shipment timing (notably in Garden), portfolio optimization (durable/category exits and SKU rationalization), and a temporary shipment hold with a large pet customer. Despite the sales decline, non-GAAP gross margin expanded 100 basis points to 30.8% (gross profit $190M) driven by productivity and mix, and non-GAAP diluted EPS was $0.21 (GAAP diluted EPS $0.11), in line with prior year and above expectations. Adjusted EBITDA was $50M. Pet consumables (rawhide, wild bird, animal health) showed resilience and share gains; Garden is seasonally smaller in Q1 with the core selling season still ahead. Management completed further network consolidations and a small tuck-in acquisition (Champion USA) to strengthen consumables and professional capabilities. The company reaffirmed fiscal 2026 non-GAAP diluted EPS guidance of $2.70 or better, expects CapEx of $50–60M (productive/maintenance focused), estimates incremental tariff exposure of ~$20M to be mitigated via pricing and supply actions, and highlighted a strong balance sheet (cash & short-term investments ~$721M, total debt $1.2B, gross leverage 2.9x, net leverage ~1.2x) enabling continued M&A and share repurchases (Q1 repurchases ~$18.5M). Management emphasized that cost & simplicity programs are largely complete and that the company is shifting emphasis toward a multiyear growth agenda centered on innovation, digital/e‑commerce, private label, and selective margin‑accretive M&A.