Lack of demand impacts Central’s pet business
Sales in the category dropped 5% in the last quarter amid less demand for aquatic products.
The company’s pet segment earned $416 million (€382M) in sales for its FY 2023 first quarter ending 24 December 2022. In the same period of 2021, the Californian retailer posted $436 million (€400M).
Central Garden & Pet said the decline was primarily led by the company’s move to discontinue low-profit private-label product lines. There was also less demand for durable pet products, particularly in aquatics. According to the company, a slowdown in pet adoptions “unfavorably impacted” its durable supplies.
The pet business’ income also went down from $45 million (€41M) a year ago to $40 million (€36.7M) in the last quarter due to inflation and lower sales.
E-commerce accounted for 23% of pet-branded sales in the quarter.
Central Garden & Pet posted global net sales of $628 million (€572M) in the 3 months to December, a decline of 5%.