Central Garden & Pet reported fiscal 2026 third-quarter results on August 5, with net sales falling 8% to $882 million, yet the company raised its full-year profit outlook. Gross margin expanded 130 basis points to 35.9%, and non-GAAP operating margin climbed 90 basis points to 15.4%, largely due to the exit of its lower-margin pet distribution business. Excluding that divestiture, organic net sales rose 2% to $862 million, with the Garden segment leading growth at 3% to $482 million. Management raised its fiscal 2026 non-GAAP diluted EPS outlook from $2.70 or better to $2.85 or better. Central also announced a definitive agreement to acquire an 80% interest in TRIXIE, a European pet supplies company, for up to €400 million including earn-outs, expected to close in the first half of fiscal 2027. Despite the margin gains, GAAP diluted EPS fell to $1.45 from $1.52, and non-GAAP EPS slipped to $1.54 from $1.56, with net income down 5% to $90 million.
Central Garden & Pet Company ARaises full-year EPS guidance despite sales decline, driven by margin expansion from exiting low-margin pet distribution.
Central Garden & Pet acquires 80% interest in TRIXIE, valuing the company and providing growth capital.
