Central Garden & Pet Co. has recently released its 10-Q report, revealing a decline in net sales and operating income for the first quarter of fiscal 2026. The company operates through two segments: Pet and Garden, offering a wide range of products for the lawn and garden, and pet supplies markets. In fiscal 2025, the company reported consolidated net sales of $3.1 billion, with the Pet segment accounting for approximately $1.8 billion and the Garden segment accounting for approximately $1.3 billion.
However, in the first quarter of fiscal 2026, Central Garden & Pet Co. experienced a 6.0% decrease in net sales, amounting to $617 million, compared to the prior year quarter. The Pet segment's net sales decreased by 2.7%, while the Garden segment saw a larger decline of 12.0%. This led to a 2.6% decrease in gross profit, although the gross margin increased by 110 basis points to 30.9%.
Selling, general, and administrative expenses increased by 3.8% to $174.1 million, accounting for 28.2% of net sales. As a result, the operating income declined by 40.9% to $16.5 million in the first quarter of fiscal 2026. The company reported a net income of $6.8 million, or $0.11 per diluted share, compared to $14.0 million, or $0.21 per diluted share, in the first quarter of fiscal 2025.
In December 2025, Central Garden & Pet Co. acquired the U.S. assets of Champion USA LLC for approximately $57 million, strengthening its position in the livestock industry. The company also incurred approximately $7.7 million in charges related to facility closures as part of its Cost and Simplicity program aimed at achieving a more efficient manufacturing and logistics network.
As a result of these announcements, the company's shares have moved -2.98% on the market, and are now trading at a price of $32.25. If you want to know more, read the company's complete 10-Q report here.
