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08/04/2022

Sales slip at Central Garden & Pet

Poor weather conditions impact sales in Central’s garden segment.
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Central Garden & Pet reported this quarter net sales decreased 2% to $1.015 billion compared to sales $1.037 billion in the third quarter of 2021.

Organic net sales decreased 5% during the third quarter compared to the same period a year ago.

The Walnut Creek, Calif.-based supplier attributed the decline in net sales to soft sales in its garden segment. 

Net sales for the garden segment decreased 4% to $511 million from $529 million a year ago. Contributions from acquisitions were offset by a decline in organic garden sales of 8%. Unfavorable weather impacted the majority of its garden business, Central Garden & Pet said.

Sales in the company’s pet segment slipped to $505 million for the quarter compared to $508 million in the prior third quarter.

Central Garden & Pet posted a net income of $75.4 million for the period, sliding 1% from a net income of $76.2 million in the corresponding quarter last year.

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The Bottom Line: Weak garden sales result in a 2% dip in sales as profits slip just 1% to $75.4 million for the third quarter.

What the CEO said: “In the face of a challenging environment, Central delivered third quarter EPS two cents above the prior year quarter,” said Tim Cofer, CEO of Central Garden & Pet. “Despite softness in the garden segment due to unfavorable weather, evolving consumer behavior, reduced foot traffic and changing retailer inventory expectations, our team continued to execute well during the quarter. We remain confident in our Central to Home strategy and will make purposeful investments to capture opportunities in the pet and garden industries that will drive profitable long-term growth.”

Company info:Click here to read the full third quarter financial report from Central Garden & Pet.