Central Garden & Pet took a few steps back in the third quarter, posting an 11% sales decrease and a year-over-year decline in income.
Net sales for the three months ended June 28 were $438.0 million, down from $494.1 million in the third quarter of 2013. The decline took place in both the Pet and Garden segments, and it was exacerbated by a $16.9 million charge related to the discontinuance of two garden products.
Net income came in at $4.7 million, down from $13.7 million in the year-ago period. This translates to $0.09 per fully diluted share, down from $0.28 last year.
President and CEO John Ranelli commented on the company's decision to discontinue the products, citing weak sales that discouraged retailers from stocking the items.
“The right decision was to cut our losses, discontinue the products and move forward," he said. "We are continuing our aggressive efforts to improve customer service, address issues that have impacted financial performance and position the company to create value for shareholders.”