Central Garden & Pet Company reported its financial results for the third quarter of fiscal 2025, revealing a net sales decline of $35.4 million, or 3.6%, to $960.9 million compared to $996.3 million in the same quarter of the previous year. The Pet segment experienced a decrease in net sales of $15.5 million, or 3.1%, totaling $492.5 million, while the Garden segment saw a decline of $19.9 million, or 4.1%, to $468.4 million. Despite the drop in sales, gross profit increased by $15 million, or 4.7%, to $332 million, with gross margin improving by 280 basis points to 34.6%.
The company's operating income for the quarter rose by $19.2 million, or 16.6%, to $135.1 million, driven by a combination of improved gross margins and reduced selling, general, and administrative expenses, which fell by $4.2 million to $196.9 million. Net income attributable to Central Garden & Pet Company was $95 million, or $1.52 per diluted share, compared to $79.7 million, or $1.19 per diluted share, in the prior year quarter. The increase in net income was also reflected in non-GAAP measures, which showed a rise to $97.9 million, or $1.56 per diluted share.
In terms of strategic developments, Central Garden & Pet completed the acquisition of TDBBS, LLC, a provider of premium natural dog chews and treats, for approximately $60 million. This acquisition is expected to enhance the company's product offerings and eCommerce capabilities. Additionally, the company is winding down its operations in the United Kingdom, transitioning to a direct-export model, which has incurred one-time costs of approximately $5.3 million in the second quarter and $1.7 million in the third quarter of fiscal 2025.
Operationally, the company reported a total debt of $1.191 billion as of June 28, 2025, slightly up from $1.189 billion a year earlier. The company has also been actively repurchasing shares, with approximately $154.7 million used for stock buybacks in the nine months ended June 28, 2025. Looking ahead, Central Garden & Pet anticipates continued challenges in the market, including potential impacts from economic conditions and competition, but remains focused on leveraging its strategic initiatives to drive growth and improve operational efficiency.
About CENTRAL GARDEN & PET CO
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