Central Garden & Pet reaffirms $2.70+ EPS target for 2026 while shifting focus to innovation and growth

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• Pet adoption has definitely hit the bottom and is tilted towards coming back up, with stabilization and positive growth in live animal business

  80% confidence

• The company is applying the same clarity, focus and consistency to fostering a growth mindset and embedding innovation more deeply across the organization

  80% confidence

• Net sales were $617 million, a 6% year-over-year decline with 2 primary factors that accounted for substantially all of the change: timing of retailer spring inventory shipments and continued portfolio optimization efforts

  80% confidence

• Durables were about 16% of Pet segment sales in Q1, consistent with Q4, with decline north of 20%

  80% confidence

• It's time to pivot and focus on a growth mindset, including picking up private label, M&A, driving market share in categories, and investing in digital

  80% confidence

• The total distribution points of products that Central Garden manufactures is up 14% year-over-year, showing optimism for growth and continued retailer support

  80% confidence

• Shipment timing was more than half of the overall net sales decline, with portfolio optimization accounting for almost the rest

  80% confidence

• Improved gross margins and solid earnings per share, especially when compared to a strong prior year first quarter that benefited from favorable shipment timing, promotional activity and weather

  80% confidence

• Over the past several years, the company focused on simplifying the business, improving efficiency and maintaining profitability across both segments, and that work continues to show up in results

  80% confidence

• Inventories and barns are in great shape and the company is ready to be pressure tested if spring weather is favorable

  80% confidence

• Central Garden & Pet expects fiscal 2026 non-GAAP diluted EPS of $2.70 or better

  80% confidence

• The discipline around managing costs and operational simplicity is now firmly embedded in the company's culture

  80% confidence