Central Garden's Cost and Simplicity Program Drives Margin Expansion

EarningsCorporate Action

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Summary · why it matters

Central Garden & Pet Company reported that its Cost and Simplicity program expanded second-quarter fiscal 2026 gross margin by 30 basis points to 33.1% and operating margin to 12.6% from 11.2% a year ago. The company relocated its DoMyOwn business to its Covington fulfillment center and is consolidating Top Dog Best Bully Sticks manufacturing into its New Jersey platform to improve efficiency. It also entered a joint venture with Phillips Pet Food & Supplies while retaining a 20% ownership stake to strengthen its distribution network. Management reaffirmed fiscal 2026 adjusted earnings guidance of $2.70 per share or better, citing ongoing margin discipline despite inflation and tariffs.

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