Business
Central Garden & Pet Revises Outlook for Fiscal 2022 GAAP EPS
Fiscal 2022 GAAP EPS now expected to be at or above prior year Lower outlook driven primarily by poor Garden season Confident in Central to Home Strategy and
About this update from Central Garden & Pet Company
[{"type":"text","content":"\nFiscal 2022 GAAP EPS now expected to be at or above prior year\nLower outlook driven primarily by poor Garden season\nConfident in Central to Home Strategy and long-term profitable growth in Pet and Garden\n\n WALNUT CREEK, Calif.--(BUSINESS WIRE)--\n\nCentral Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a market leader in the Garden and Pet industries, today announced that despite favorable long-term industry trends, several factors have led the Company to lower its outlook for fiscal 2022 GAAP EPS.\n\n“The operating environment continues to be extremely challenging, with high inflation and geopolitical developments unfavorably impacting commodities, labor and freight, significant pricing actions and growing economic uncertainty. As we indicated in early May, the garden season had a late start. Poor weather conditions continued and that, coupled with reduced foot traffic and changing inventory expectations from our customers, led to softness across most of our Garden portfolio, driving the vast majority of the revised guidance,” said Tim Cofer, CEO of Central Garden & Pet.\n\n“While it’s disappointing to not deliver on our original outlook, we nonetheless expect to deliver GAAP EPS at or above prior year, despite the uncertain and inflationary economic environment and two years of extraordinary growth. Importantly, we are confident our Central to Home strategy and the investments we are making will drive profitable long-term growth and allow us to capture opportunities in both the Pet and Garden industries.”\n\nThe Company now expects fiscal 2022 GAAP EPS to be at or above prior year GAAP EPS of $2.75. The outlook takes into account increasing costs for commodities and freight, exacerbated by the current geopolitical environment, labor and a return to more normalized consumer demand patterns following extraordinary demand spanning two fiscal years. This guidance further includes anticipated pricing actions across the Company’s portfolio as well as investments in capacity expansion, brand building, consumer insights, innovation and eCommerce to drive sustainable growth. This outlook does not include the impact of acquisitions that may close during fiscal 2022.\n\nThe Company will provide further details during its fiscal 2022 Q3 earnings call scheduled for August 3, 2022.\n\nAbout Central Garden & Pet\n\nCe...