Central’s pet sales drop 1% in a year
The category did not perform well in the last quarter either, with sales accounting for $440 million against $459 million in 2021 (-4%).
According to Central Garden & Pet, these numbers have been “unfavorably impacted” by SKU rationalization and the “purposeful decision” to exit low-profit private-label product lines.
The pet segment’s operating income was $40 million in Q4 FY2022, an increase of 28% compared to $32 million in the same period of 2021. Yearly pet sales accounted for $1.9 billion, a decrease of 1%. Central told investors this was due to the impact of high inflation on consumer behavior and the general slowdown of the category through the last 12 months.
The company expects the change in consumer spending to continue in the future but believes there are “favorable trends” that support long-term growth in the pet category.
“While the near-term economic outlook remains volatile and likely unfavorable, we remain confident in the fundamental trends that support growth in the Garden and Pet industries, the competitive strength of Central, and our Central to Home strategy,” said CEO Tim Cofer.
Share this story:
