Nov 7, 2025 9:02 AM Eastern Standard Time Central Garden & Pet Strengthens National Logistics Network with New Salt Lake City Facility Share Strategic consolidation and DTC capacity enhance throughput and cost efficiency to support long-term growth Senior Management of Central Garden & Pet at the opening of the company's state-of-the-art fulfillment center in Salt Lake City, Utah. WALNUT CREEK, Calif.--(BUSINESS WIRE)--Central Garden & Pet Company (NASDAQ: CENT), (NASDAQ: CENTA), a leading company in the pe ...

Nov 6, 2025 10:01 AM Eastern Standard Time Kaytee Partners With Jane Lynch and Christian Cooper to Make Backyard Birding the Hobby of the Season As birding continues to break into the cultural zeitgeist, Kaytee is leading the movement by bringing mainstream visibility to the hobby. The Birder Hub is a first-of-its-kind digital destination designed to make birding accessible, inspiring, and enjoyable for everyone, from curious beginners to seasoned enthusiasts. FRANKLIN, Wis.--(BUSINESS WIRE)--Kaytee, a lead ...

Core Viewpoint - Central Garden (CENT) is a strong candidate for investors looking for stocks that consistently beat earnings estimates, particularly in the consumer products - discretionary industry [1] Earnings Performance - Central Garden has a history of beating earnings estimates, with an average surprise of 13.53% over the last two quarters [2] - In the most recent quarter, the company reported earnings of $1.56 per share, exceeding the expected $1.34 per share, resulting in a surprise of 16.42% [3] - For the previous quarter, Central Garden's earnings were $1.04 per share against an estimate of $0.94 per share, leading to a surprise of 10.64% [3] Earnings Estimates and Predictions - Recent estimates for Central Garden have been increasing, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6][9] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7] - Central Garden currently has an Earnings ESP of +6.56%, suggesting analysts are optimistic about the company's earnings prospects [9] Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8] - A positive Earnings ESP combined with a Zacks Rank of 3 indicates a potential earnings beat, while a negative Earnings ESP may reduce predictive power but does not necessarily indicate a miss [9][10]

Core Insights - Chewy, Inc. (CHWY) and Central Garden & Pet Company (CENT) are significant players in the pet care industry, each with distinct strategies focusing on different aspects of the market [1][2] Chewy, Inc. (CHWY) - Chewy reported net sales of $3.10 billion for Q2 of fiscal 2025, an increase of 8.6% year-over-year, exceeding guidance [2][9] - The Autoship program was a key driver, generating record sales of $2.58 billion, accounting for 83% of total net sales, and showing a 14.9% year-over-year increase [3][9] - The active customer base grew by 4.5% year-over-year to 20.9 million, with net sales per active customer rising 4.6% to $591 [4] - Chewy Vet Care plans to open 8-10 additional clinics in fiscal 2025, and the Chewy+ membership program exceeded internal targets, contributing 3% to July sales [5] - Adjusted EBITDA was reported at $183.3 million, with a margin of 5.9%, reflecting an 80-basis-point year-over-year increase [6] - Marketing expenses were $200.6 million, or 6.5% of net sales, aligning with the full-year target of 6-7% [7] - Chewy raised its full-year net sales guidance to $12.5-$12.6 billion, indicating a 7-8% year-over-year growth [7] Central Garden & Pet Company (CENT) - CENT's gross margin increased by 280 basis points to 34.6%, despite a 4% decline in quarterly net sales to $961 million [9][12] - The Central-to-Home strategy led to consumables rising to 82% of total pet sales, up from 79% a year ago [10] - E-commerce contributed 27% to total pet sales, with double-digit growth in garden categories [11] - The total net sales decline of 4% year-over-year was attributed to softer consumer demand and strategic product exits [13] - The garden segment faced a 4% sales drop due to unfavorable weather conditions and loss of product lines [14] - Management anticipates $10 million in tariff impacts for fiscal 2025, primarily affecting the fourth quarter [15] Comparative Analysis - Chewy's shares have decreased by 3.3% over the past three months, while CENT's stock has declined by 18.5% [19] - Chewy is trading at a forward price-to-sales (P/S) multiple of 1.09, while CENT's forward P/S multiple is at 0.64 [21] - Chewy is viewed as the stronger investment option due to its recurring revenue model and growth strategies, while CENT faces challenges from declining sales and external pressures [23][24]

Core Insights - Investors are currently lacking confidence in Central Garden & Pet (NASDAQ: CENT), as evidenced by a 17% decline in the company's stock price over the past month [1] Company Performance - Central Garden & Pet is experiencing a decline in sales, which contributes to the negative sentiment among investors [1]

Core Insights - Investors are currently lacking confidence in Central Garden and Pet (NASDAQ: CENT), as evidenced by a 17% decline in the company's stock price over the past month [1] Company Performance - Central Garden and Pet is experiencing a decline in sales, which is contributing to the negative sentiment among investors [1]

Company Overview - Nylabone is a brand under Central Garden & Pet Company, which has been a leader in healthy chewing since 1955, focusing on high-quality chew toys and pet care solutions [6][8] - Central Garden & Pet Company reported fiscal 2024 net sales of $3.2 billion and has a portfolio of over 65 brands, including Nylabone [8] Partnership and Initiatives - Nylabone partnered with the American Humane Society to sponsor the reunification of retired military working dog Erika with her former handler, SSgt. Tara [1][2] - The sponsorship includes covering Erika's veterinary care for the rest of her life, ensuring her a healthy retirement [1][2] - Since 2018, Nylabone has been involved in multiple reunifications and has provided donations for shelter dogs and service dogs in training through the Pups4Patriots program [3][4] Corporate Social Responsibility - Nylabone's initiatives reflect its commitment to supporting military working dogs and their handlers, as well as contributing to community health and sustainability through the Nylabone Cares program [3][4] - The company also supports local and national charities by donating chew toys and educating pet owners on healthy chewing habits [4]

Core Insights - The Consumer Products-Discretionary industry is facing challenges due to inflation and tariff-driven cost pressures, but consumer spending is expected to remain resilient albeit at a slower pace compared to last year [1][4] - Companies with strong brand loyalty, pricing power, and diversified channels are better positioned to navigate the current economic landscape [2] - The industry's earnings outlook has declined significantly, with a 21.8% drop in earnings estimates since the beginning of 2025 [9] Industry Overview - The Consumer Products-Discretionary industry is cyclical and closely tied to economic conditions, targeting middle-to-higher-income consumers with high-priced discretionary products [3] - The industry includes various product categories such as fashion, jewelry, home goods, and personal care products, sold through specialty retailers, mass-market retailers, and e-commerce platforms [3] Key Trends - Consumer sentiment is under pressure, leading to cautious spending behavior, with a projected increase in U.S. holiday retail sales of 2.9% to 3.4%, slower than the previous year's 4.2% [4] - Companies are investing in digital ecosystems and optimizing supply chains to mitigate cost pressures and enhance margins [5] - Brand enhancement and capital discipline are critical, with companies focusing on consumer engagement, product innovation, and operational efficiency [6] Market Performance - The Zacks Consumer Products-Discretionary industry ranks 165, placing it in the bottom 32% of over 250 Zacks industries, indicating bleak near-term prospects [7][8] - The industry has underperformed the broader market, declining 16.7% over the past year compared to the S&P 500's rise of 18.4% [11] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-sales (P/S) ratio of 2.98X, lower than the S&P 500's 5.40X and the sector's 2.20X [14] Notable Companies - **The Honest Company**: Positioned for growth in the sensitive skin market, with a projected sales growth of 4.7% and EPS growth of 283.3% [17][18] - **Central Garden & Pet Company**: Focused on innovation and market share expansion, with an EPS growth estimate of 22% [21][22] - **Interparfums**: Maintains a strong market position with a diversified brand portfolio, expecting sales growth of 2.4% [25][26] - **The RealReal**: A leader in the luxury resale market, with projected sales growth of 12.3% and EPS growth of 87.9% [29][31]

Core Insights - Central Garden & Pet Company has partnered with Cal Athletics to promote pet welfare and celebrate the bond between people and their pets [1] - The collaboration designates Central's brands, Nylabone® and Cadet®, as the official pet toys, chews, and treats of Cal Athletics [1] - The partnership will focus on pet adoptions and engage fans throughout the season [1]

Group 1 - Central Garden & Pet Inc. stock price is currently at $35.70, reflecting a 0.15% increase, but has decreased by 0.10% over the past month and 5.47% over the past year [1] - The P/E ratio of Central Garden & Pet Inc. is 16.35, which is lower than the industry average P/E ratio of 22.11 in the Household Products sector [6] - A lower P/E ratio may suggest that the stock is undervalued or that shareholders do not expect future growth [9] Group 2 - The P/E ratio is a key metric for evaluating a company's market performance, but it should not be used in isolation as other factors can also influence stock prices [9] - Investors may remain optimistic about future performance if they are willing to pay a higher share price, which could indicate expectations of rising dividends [5]