Central Garden & Pet Boosts $100M Buyback Despite Q1 Sales Drop
Central Garden & Pet Company’s board authorized an additional $100 million stock repurchase on February 17, citing undervalued shares. Q1 fiscal 2026 net sales fell to $617 million from $656 million, GAAP EPS slid to $0.11, but gross margin rose 110 basis points to 30.9% on improved productivity.
1. Board Expands Stock Repurchase Program
On February 17, Central Garden & Pet’s board approved an additional $100 million in buybacks of common and Class A shares, citing management’s view that the stock is currently undervalued and will benefit shareholders.
2. Q1 Fiscal 2026 Results
The company reported Q1 net sales of $617 million, down from $656 million a year earlier, delivered GAAP diluted EPS of $0.11 versus $0.21, and expanded gross margin by 110 basis points to 30.9% driven by productivity improvements.
3. New Board Appointment
Effective March 1, Kay M. Schwichtenberg will join the board of directors, bringing additional governance expertise to oversee strategic initiatives and growth execution.
4. Hedge Funds Endorsement
Several hedge funds have identified Central Garden & Pet as a top pet-stock pick, reinforcing confidence in the company’s valuation and buyback strategy.