Central’s sales slip 2% in FY2025, e-commerce drives pet segment growth

Following the closure of its UK operations and lower durable sales, Central Garden & Pet’s pet segment posted a 1.6% drop in net sales to $428 million (€394M) for the Q4 FY2025, which ended 27 September 2025.

The company’s CFO, Bradley G. Smith, says that the closure, which spanned from the second through fourth quarters, resulted in $10 million (€9.2M) total charges for FY2025. “These impacts were partially offset by strong growth in our Animal Health businesses, particularly within our professional portfolio and equine,” says Smith. 

He added that while demand for durables remains soft, consumables performance continued to be “relatively stable,” supported by “positive point-of-sales trends in the fourth quarter.”

Group’s results

The company reported net sales of $678 million (€586M) in the quarter, up 1% year-on-year (YoY).

And despite recording a net loss of $10 million (€8.6M), the result improved compared to the same period last year, when the net loss was $34 million (€29.3M).

During the earnings call, the CFO cited the impact of trade duties on its operations, with related costs in the quarter reaching approximately $7 million (€6.4M) to $8 million (€7.4M). For the full year, exposure is expected to hit $20 million (€18.4M).

“The majority of the exposure is within the pet segment. We are expecting to offset most of the tariffs through pricing, portfolio and supply chain actions,” Smith states. 

Fiscal year results

For FY2025, Central’s net sales totaled $3.1 billion (€2.7B), a 2% decline from last fiscal year. The pet segment sales registered the same percentage decline, posting $1.8 billion (€1.5B) in revenue. 

The group, however, increased its net income by almost 51% to $163 million in FY2025. 

Pet overview 

While the durables segment accounted for 16% of the pet segment’s sales, John Hanson, President of pet consumer products, says it saw a double-digit decline in Q4 due to discontinued, low-margin SKUs. This decline is expected to continue through the first half of 2026.

Meanwhile, the consumables segment posted an all-time high sales contribution to the pet segment, at 84%.

In terms of channels, the company highlights that e-commerce has also posted consistent growth since Q2, accounting for 27% of total pet segment sales.

“Across the pet segment overall, we maintained our market share and delivered gains in dog chews, pet bird, equine, and flea and tick, as well as in our professional portfolio,” adds company CFO Bradley G. Smith.

Outlook

For FY2026, Central Garden & Pet expects to report non-GAAP earnings per share of $2.70 (€2.48) or better, supported by margin expansion and operational performance.

This outlook is also supported by the company’s cost and simplicity agenda, which aims to offset cost inflation, tariffs and supply chain complexity through productivity gains.

“We expect consumers to remain focused on value and performance within a promotionally active but stable retail environment, with continued channel shifts from pet specialty to e-commerce,” says CEO Nicholas Lahanas.

The CEO notes that their 2026 outlook excludes potential impacts from acquisitions, divestitures or restructuring actions, including activities related to its ongoing cost and simplicity agenda.

“We have done a tremendous amount of foundational work, and as a result, we are entering fiscal 2026 with the business performing at a very high level. With strong financial flexibility and an improving M&A landscape, we are confident in the road ahead,” he concludes.