Central Garden & Pet Co (CENT) 2025 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Central Garden & Pet's fourth-quarter and fiscal 2025 earnings call. My name is Paul, and I will be your conference operator for today. (Operator Instructions) As a reminder, this conference call is being recorded.

女士們、先生們，感謝你們的耐心等待。歡迎參加 Central Garden & Pet 第四季及 2025 財年財報電話會議。我叫保羅，今天我將擔任你們的會議接線生。（操作員說明）提醒各位，本次電話會議正在錄音。

I would now like to turn the call over to Friederike Edelmann, Vice President, Investor Relations. Please go ahead.

現在我將把電話交給投資者關係副總裁弗里德里克·埃德爾曼。請繼續。

Good afternoon, everyone, and thank you for joining Central's fourth quarter and fiscal year 2025 earnings call. Joining me today are Niko Lahanas, Chief Executive Officer; Brad Smith, Chief Financial Officer; John Hanson, President of Pet Consumer Products; and J.D. Walker, President of Garden Consumer Products. Niko will start by sharing today's key takeaways followed by Brad who will provide a more in-depth discussion of our results. After their prepared remarks, J.D and John will join us for the Q&A session.

各位下午好，感謝各位參加 Central 公司 2025 財年第四季及全年業績電話會議。今天與我一同出席的有：執行長尼可‧拉哈納斯；財務長布拉德‧史密斯；寵物消費品總裁約翰‧漢森；以及園藝消費品總裁J.D.沃克。Niko 將首先分享今天的主要收穫，隨後 Brad 將對我們的結果進行更深入的討論。在他們發表完準備好的演講後，J.D 和 John 將與我們一起參加問答環節。

Before we begin, I would like to remind everyone that all forward-looking statements made during this call are subject to risks and uncertainties that could cause our actual results to differ materially from those forward-looking statements expressed or implied today. A detailed description of Central's risk factors can be found in our annual report filed with the SEC.

在開始之前，我想提醒大家，本次電話會議中所有前瞻性陳述均存在風險和不確定性，可能導致我們的實際結果與今天明示或暗示的前瞻性陳述有重大差異。有關 Central 風險因素的詳細描述，請參閱我們向美國證券交易委員會提交的年度報告。

Please note that Central undertakes no obligation to publicly update these forward-looking statements to reflect new information, future events or other developments. Our press release and related materials, including GAAP reconciliation for the non-GAAP measures discussed on this call are available at ir.central.com.

請注意，Central 不承擔公開更新這些前瞻性聲明以反映新資訊、未來事件或其他發展的義務。我們的新聞稿和相關資料，包括本次電話會議中討論的非GAAP指標的GAAP調節表，可在ir.central.com上查閱。

Last but not least, unless otherwise specified, all comparisons discussed during this call are made against the same period in the prior year. If you have any questions after the call or at any time during the quarter, please don't hesitate to contact me directly.

最後，除非另有說明，本次電話會議中討論的所有比較均與上一年同期進行比較。如果您在通話後或本季內的任何時間有任何疑問，請隨時直接與我聯絡。

And with that, let's get started. Niko?

那麼，我們就開始吧。尼科？

Thank you, Friederike, and good afternoon, everyone. I'd like to begin by highlighting three themes we will focus on today. First, fiscal '25 was a year of meaningful progress, intangible accomplishments across Central. Our record bottom line performance underscores the strength of our business model, the rigor of our execution and the relentless commitment of Team Central.

謝謝你，弗里德里克，大家下午好。首先，我想重點介紹我們今天將要討論的三個主題。首先，2025 財年是中央地區取得實質進展和無形成就的一年。我們創紀錄的獲利表現凸顯了我們商業模式的實力、執行的嚴謹性和中央團隊的不懈努力。

Second, we continue to strengthen our foundation by streamlining operations, consolidating facilities, optimizing our portfolio and driving efficiencies that enhance our cost structure and position us for sustained profitable growth.

其次，我們將繼續透過精簡營運、整合設施、優化投資組合和提高效率來鞏固我們的基礎，從而改善我們的成本結構，並為持續獲利成長奠定基礎。

And third, as we enter fiscal '26, we're energized by our momentum and the opportunities ahead. Powered by our Central to Home strategy and sharp disciplined execution, we're poised to accelerate our long-term agenda with even greater focus and agility.

第三，進入 2026 財年，我們受到發展動能和未來機會的鼓舞。憑藉我們的「中心到家園」策略和嚴謹的執行力，我們已做好準備，以更大的專注度和靈活性加速推進我們的長期計劃。

Now let me expand on each of these points. First, our fiscal '25 achievements. Thanks to the hard work and dedication of our more than 6,000 employees. We closed the year with expanded gross margins, record EBITDA and record earnings per share. These results underscore the strength and resilience of our business model as well as the drive and commitment of our people.

現在讓我詳細闡述這些要點。首先，回顧一下我們2025財年的成就。感謝我們6000多名員工的辛勤工作和奉獻精神。我們以毛利率擴大、EBITDA 創紀錄和每股收益創紀錄的成績結束了這一年。這些結果凸顯了我們商業模式的實力和韌性，以及員工的幹勁和奉獻精神。

We delivered consistent performance while advancing portfolio optimization and maintaining disciplined cost management.

我們在推進投資組合優化和維持嚴格的成本控制的同時，也實現了穩定的績效。

Throughout the period, we upheld operational rigor, streamlined our footprint and drove efficiency initiatives across both segments. We also navigated variable weather conditions by simplifying our business and tightly managing costs, actions that have made our model even more resilient and predictable. Results reflected the transition of two third-party product lines in our garden distribution business to a direct-to-retail model.

在此期間，我們堅持嚴格的營運標準，精簡了業務佈局，並在兩個業務板塊都推行了提高效率的舉措。我們還透過簡化業務和嚴格控製成本來應對多變的天氣條件，這些措施使我們的模式更具韌性和可預測性。結果反映了我們園藝分銷業務中兩條第三方產品線向直接零售模式的轉變。

At the same time, we continue to deliberately reduce our exposure to low-margin durable products in both Pet and Garden. A strategic move that while creating short-term top line pressure strengthens our portfolio and positions us for sustainable profitable growth. We ended the year with record results of fortress balance sheet and strong momentum as we head into fiscal '26.

同時，我們繼續有意識地減少在寵物和園藝領域低利潤耐用品方面的投入。這是一項策略性舉措，雖然會對短期營收帶來壓力，但它會增強我們的產品組合，並使我們為可持續的獲利成長做好準備。我們以創紀錄的穩健資產負債表和強勁的發展勢頭結束了這一年，並邁入了 2026 財年。

Second, advancing our Cost and Simplicity agenda. Our initiatives continue to deliver measurable, sustainable benefits, enhancing productivity, expanding margins and positioning us to fuel future growth. We've largely completed our multiyear supply chain network design project, a major milestone that has strengthened customer alignment, increased service speed and improved cost efficiency across our logistics network. The project also established enterprise-wide e-commerce fulfillment capabilities and modernized our distribution footprint.

第二，推進我們的成本和簡化議程。我們的各項措施持續帶來可衡量的、可持續的效益，提高生產力，擴大利潤率，並為我們未來的成長奠定基礎。我們已基本完成歷時多年的供應鏈網路設計項目，這是一個重要的里程碑，它加強了與客戶的協調，提高了服務速度，並提升了整個物流網絡的成本效益。該專案還建立了企業範圍內的電子商務履約能力，並實現了分銷佈局的現代化。

Together with the sale of our garden distribution business and the intentional exit of the pottery business, this work has enabled us to close 16 legacy facilities to date. By the end of the calendar year, we will be operating a modern high-performing infrastructure anchored by DTC enabled fulfillment centers in Salt Lake City; Eastern Pennsylvania; and Covington, Georgia, a network built for speed, efficiency and growth.

加上出售我們的園藝分銷業務和有意退出陶器業務，這項工作使我們迄今為止關閉了 16 家遺留工廠。今年底，我們將營運一個現代化的、高效能的基礎設施，以位於鹽湖城、賓州東部和喬治亞州科文頓的 DTC 配送中心為核心，建立一個速度快、效率高、成長迅速的網路。

Across our footprint, systems and processes were streamlining operations, boosting productivity and freeing up resources to reinvest in the business. These actions are making Central simpler, stronger and better positioned to scale, creating a more resilient cohesive and predictable company that delivers consistent performance, adapts with flexibility and is poised to capture the full potential of the opportunities ahead.

在我們業務的各個環節，系統和流程都在簡化運營，提高生產力，並釋放資源以重新投資於業務。這些舉措使 Central 變得更簡單、更強大，更有利於規模化發展，從而打造一個更具韌性、更團結、更可預測的公司，該公司能夠提供持續穩定的業績，靈活適應變化，並準備好抓住未來機遇的全部潛力。

Third, outlook for fiscal '26. We entered the year with strong momentum, clear priorities and a unified focus on delivering results. Our diversified portfolio, operational agility and prudent cost management give us confidence in our ability to deliver profitable growth despite current global macro environment and policy shifts. We expect consumers to remain focused on value and performance with a promotionally active but stable retail environment and continued channel shifts from pet specialty to e-commerce.

第三，2026財年展望。今年年初，我們勢頭強勁，目標明確，並齊心協力取得成果。多元化的投資組合、靈活的營運能力和審慎的成本管理，使我們有信心即使在當前全球宏觀環境和政策變化的情況下，也能實現獲利成長。我們預計，在促銷活動活躍但穩定的零售環境以及寵物專賣店向電子商務通路持續轉變的情況下，消費者將繼續專注於價值和性能。

We're delivering with precision to offset cost inflation, tariffs and supply chain complexity through productivity gains driven by our Cost and Simplicity agenda and pricing discipline. After incorporating these factors and our operating plans, we expect fiscal '26 non-GAAP earnings per share to be $2.70 or better.

我們透過成本和簡化策略以及定價紀律，提高生產力，從而精準交付產品，抵銷成本上漲、關稅和供應鏈複雜性的影響。考慮到這些因素和我們的營運計劃，我們預計 2026 財年非 GAAP 每股盈餘將達到 2.70 美元或更高。

Supported by margin expansion and operational performance. As always, our outlook excludes potential impacts from acquisitions, divestitures or restructuring actions including activities related to our ongoing Cost and Simplicity agenda.

得益於利潤率提升及營運績效改善。與以往一樣，我們的展望不包括收購、剝離或重組行動可能產生的影響，包括與我們正在進行的成本和簡化議程相關的活動。

We remain confident that the Central to Home strategy is the right path and the foundation for long-term value creation. We're combining the agility of a startup with the strength and scale of a category leader, empowering business units to innovate quickly while leveraging Central's operational and financial capabilities to accelerate growth.

我們仍然堅信，以中心為核心的「家園」策略是正確的道路，也是創造長期價值的基礎。我們將新創企業的敏捷性與行業領導者的實力和規模相結合，使業務部門能夠快速創新，同時利用 Central 的營運和財務能力來加速成長。

By sharing tools, data and talent across the organization, we're building a connected enterprise, one that learns faster, execute smarter and compounds its competitive advantage over time. This approach enables us to bring new ideas to the consumer faster, capture opportunities sooner and scale what works across our platform.

透過在整個組織內共享工具、數據和人才，我們正在建立一個互聯的企業，一個學習速度更快、執行更聰明、並隨著時間的推移不斷增強競爭優勢的企業。這種方法使我們能夠更快地將新理念帶給消費者，更快地抓住機遇，並將行之有效的方法推廣到我們的整個平台。

Looking ahead, we'll continue to balance sensible cost and cash management with targeted investments that fuel organic growth, particularly in innovation, e-commerce and digital technology. A key priority is making our data AI ready, improving accessibility, quality and integration to generate deeper insights and unlock meaningful value and competitive advantage across the business. These strategic investments are already translating into stronger innovation momentum. Recent launches highlight how we're combining insights, performance, sustainability and consumer impact.

展望未來，我們將繼續在合理的成本和現金管理與推動內生成長的定向投資之間取得平衡，尤其是在創新、電子商務和數位技術領域。首要任務是使我們的數據做好人工智慧準備，提高可訪問性、品質和整合度，從而產生更深入的洞察，並在整個業務中釋放有意義的價值和競爭優勢。這些戰略投資已經開始轉化為更強勁的創新動能。近期推出的產品凸顯了我們如何將洞察力、性能、永續性和消費者影響力結合在一起。

Examples include wild bird feed, our redesigned Pennington Feeding Frenzy and 3-D pro lines that elevate visibility and engagement, both online and at retail, supported by a robust digital marketing program. Worry Free 30% vinegar, a high-performance multipurpose cleaner, 6 times stronger than standard vinegar. Farnam Endure, gold fly spray a next-generation EPA-approved formula that delivers long-lasting and highly effective fly control, bringing advanced performance and care to horse owners.

例如，我們重新設計的 Pennington Feeding Frenzy 和 3D 專業系列產品，透過強大的數位行銷計劃，提高了線上和零售管道的可見度和參與度。無憂牌 30% 醋，高性能多用途清潔劑，清潔力是普通醋的 6 倍。Farnam Endure 金色驅蠅噴霧劑，採用新一代 EPA 批准配方，可持久高效地控制蒼蠅，為馬主帶來先進的性能和護理。

In parallel, M&A remains a strategic lever for growth. We're actively pursuing margin-accretive consumable businesses that complement our portfolio and expand our presence in attractive categories. While market engagement has increased, deal flow in our core categories remains somewhat limited. We expect activity to accelerate as market conditions continue to improve.

同時，併購仍然是促進成長的策略槓桿。我們正在積極尋求能夠提升利潤率的消費品業務，以完善我們的產品組合，並擴大我們在有吸引力的品類中的市場份額。雖然市場參與度有所提高，但我們核心類別的交易量仍然有些有限。我們預計隨著市場狀況的持續改善，市場活動將會加速。

I want to thank our team across Central for a record year of meaningful progress and unwavering focus. We've done a tremendous amount of foundational work. And as a result, we're entering fiscal '26 with the business performing at a very high level.

我要感謝中央團隊在過去一年中取得了創紀錄的顯著進步，並始終保持專注。我們已經完成了大量的基礎工作。因此，進入 2026 財年時，我們的業務表現非常出色。

With strong financial flexibility and an improving M&A landscape, we're confident in the road ahead. That confidence is reinforced by the strength of our retail partnerships which continue to deepen and drive mutual growth.

憑藉強大的財務靈活性和不斷改善的併購環境，我們對未來充滿信心。這種信心源自於我們強大的零售合作關係，這種合作關係不斷深化，推動雙方的共同發展。

As recognition of that strength, we were honored to be named Lowe's' Lawn & Garden Vendor Partner of the Year, and Kaytee was recently recognized with the NCAP's 2025 Pet Amazon best-in-class PDP award for excellence in product content and presentation.

為了表彰我們的實力，我們榮幸地被評為 Lowe's 年度草坪和花園供應商合作夥伴，而 Kaytee 最近也因其在產品內容和展示方面的卓越表現，獲得了 NCAP 頒發的 2025 年亞馬遜寵物最佳產品展示產品獎。

And with that, I'll hand it over to Brad. Brad?

好了，現在我把它交給布萊德。布拉德？

Thank you, Niko. Building on Niko's remarks, I will begin with our fiscal '25 results. Net sales were $3.1 billion, a decrease of 2%, while variable weather and softer demand in pet durables created meaningful headwinds, the overall sales decline for the year was driven entirely by two key factors. First, our proactive decision to reduce exposure to lower-margin businesses, including Pet and Garden durables as well as our UK operations.

謝謝你，尼科。在尼科講話的基礎上，我將首先介紹我們 2025 財年的業績。淨銷售額為 31 億美元，下降了 2%，儘管天氣多變和寵物耐用品需求疲軟造成了明顯的阻力，但全年整體銷售額下降完全是由兩個關鍵因素造成的。首先，我們主動決定減少對低利潤業務的投入，包括寵物和花園耐用品以及我們在英國的業務。

This step is part of our ongoing effort to optimize the portfolio, improve margins and strengthen the foundation for sustainable growth.

此舉是我們持續優化投資組合、提高利潤率、加強永續成長基礎工作的一部分。

Second, the transition of two third-party product lines in our garden distribution business to a direct-to-retail model. Importantly, our remaining portfolio grew slightly for the year and delivered record sales across several key businesses, including wild bird, dog treats, equine and our professional portfolio, a clear sign that our underlying business is strong and that our strategy is working.

其次，我們園藝分銷業務中的兩條第三方產品線轉型為直接零售模式。重要的是，我們剩餘的產品組合在這一年中略有增長，並在包括野生鳥類、狗零食、馬匹和我們的專業產品組合在內的幾個關鍵業務中實現了創紀錄的銷售額，這清楚地表明我們的基礎業務很強勁，我們的策略是有效的。

Non-GAAP gross profit was $1 billion, up 4.5% and non-GAAP gross margin expanded 210 basis points to 32.1%, largely supported by productivity initiatives. Both segments contributed to the improvement. Non-GAAP SG&A expense was $738 million, roughly in line with the prior year. As a percentage of sales, non-GAAP SG&A was 23.6% compared with 23%, mostly due to lower volume and the sequencing of productivity and commercial investments.

非GAAP毛利為10億美元，成長4.5%；非GAAP毛利率成長210個基點至32.1%，主要得益於生產力提升措施。這兩個方面都對改進做出了貢獻。非GAAP SG&A費用為7.38億美元，與前一年大致相當。以銷售額的百分比計算，非GAAP SG&A 為 23.6%，而去年同期為 23%，這主要是由於銷售下降以及生產力和商業投資的順序調整。

Throughout the year, we balanced sensible cost management with continued investment in long-term growth drivers. Non-GAAP operating income for the year increased to $265 million from $223 million and non-GAAP operating margin expanded to 8.5% from 7%, supported by structural cost improvements and overall strong execution. Non-GAAP adjustments totaled $15 million in fiscal '25, all related to our Cost and Simplicity agenda.

在過去一年中，我們既注重合理的成本管理，也持續投資於長期成長動力。受結構性成本改善及整體強勁執行力的支持，本年度非GAAP營業收入從2.23億美元增至2.65億美元，非GAAP營業利潤率從7%增至8.5%。2025 財政年度非公認會計準則調整總額為 1,500 萬美元，全部與我們的成本和簡化計畫有關。

In our Garden segment, these adjustments largely reflected the consolidation of two legacy distribution facilities, one in Ontario, California and another in Salt Lake City, Utah, into a single, larger and more modern site in Salt Lake City. That work began in the third quarter and continued into the fourth quarter, resulting in $5 million in SG&A charges.

在我們的園藝業務板塊，這些調整主要反映了將位於加州安大略市和猶他州鹽湖城的兩個傳統配送中心合併為位於鹽湖城的一個更大、更現代化的單一配送中心。這項工作從第三季開始，一直持續到第四季度，導致銷售、一般及行政費用增加了 500 萬美元。

In our Pet segment, the adjustments were mainly related to the strategic wind down of our UK operations and the transition to a more profitable direct-export-only model. This initiative span the second through fourth quarters and resulted in $10 million in total charges, $6 million in cost of goods and $4 million in SG&A.

在我們的寵物業務板塊，調整主要與我們在英國的業務策略性逐步停止以及向更盈利的純直接出口模式過渡有關。這項計畫從第二季度持續到第四季度，共產生 1,000 萬美元的費用，其中商品成本為 600 萬美元，銷售、一般及行政費用為 400 萬美元。

Below the line, net interest expense was $33 million compared with $38 million, helped by higher interest income from larger average cash balances. Other expense was $500,000 compared with $5.1 million as we lap the prior year impairment charge on two minority investments.

在財務報表下方，淨利息支出為 3,300 萬美元，而去年同期為 3,800 萬美元，這得益於平均現金餘額增加帶來的利息收入成長。其他支出為 50 萬美元，而前一年為 510 萬美元，原因是我們在兩項少數股權投資中提列了上一年的減損費用。

Non-GAAP net income totaled $174 million, up 22%. We delivered record GAAP and non-GAAP earnings per share of $2.55, up $0.93 and $2.73, up $0.60, respectively, exceeding both our guidance and last year's performance.

非GAAP淨利總計1.74億美元，成長22%。我們實現了創紀錄的GAAP和非GAAP每股收益，分別為2.55美元（成長0.93美元）和2.73美元（成長0.60美元），都超過了我們的預期和去年的業績。

Adjusted EBITDA for the year was $371 million compared to $334 million. Our effective tax rate for the year was 24.4% compared to 23.2% due primarily to the nondeductibility for tax purposes of losses incurred in connection with the wind down of our UK operations.

本年度調整後 EBITDA 為 3.71 億美元，而去年同期為 3.34 億美元。由於與英國業務逐步結束相關的虧損在稅務上不可抵扣，我們本年度的實際稅率為 24.4%，而去年同期為 23.2%。

Now turning to the consolidated financials for the fourth quarter. Fourth quarter net sales were $678 million, up 1% versus the prior year, led by strength in Garden. Non-GAAP gross profit for the quarter was $197 million, compared with $174 million and non-GAAP gross margin expanded 310 basis points to 29.1%.

現在來看第四季的合併財務數據。第四季淨銷售額為 6.78 億美元，比上年同期成長 1%，主要得益於 Garden 業務的強勁表現。本季非GAAP毛利為1.97億美元，而上年同期為1.74億美元；非GAAP毛利率成長310個基點至29.1%。

It's worth noting that we lapped a significant grass seed inventory charge that was taken in last year's fourth quarter. Excluding the impact of that charge, our gross margin rate was consistent with the prior year as productivity improvements effectively offset the initial impact of tariffs.

值得注意的是，我們已經抵銷了去年第四季提列的一筆數額龐大的草籽庫存費用。剔除該項費用的影響，我們的毛利率與去年持平，因為生產力的提高有效地抵消了關稅的初期影響。

Most of our actions to mitigate tariff-related cost increases are only now beginning to flow through the P&L positioning us for additional benefit going forward.

我們為緩解關稅相關成本增加而採取的大部分措施現在才開始體現在損益表中，這將使我們在未來獲得更多收益。

Non-GAAP SG&A expense for the quarter was $198 million, a 7% increase and as a percentage of net sales was 29.2% compared with 27.7%. The increase largely reflects the cadence of investments tied to our productivity and commercial initiatives.

本季非GAAP銷售、一般及行政費用為1.98億美元，成長7%，佔淨銷售額的29.2%，去年同期為27.7%。這一成長主要反映了與我們的生產力和商業計劃相關的投資節奏。

Non-GAAP operating loss for the quarter was $649,000 compared with $11 million and non-GAAP operating margin improved to negative 0.1% from negative 1.7%. Non-GAAP adjustments for the quarter totaled $6 million, including $3 million related to our UK operations and $3 million associated with the Garden facility consolidation. Of the total, $5 million was recorded in SG&A and $1 million in cost of goods.

本季非GAAP營業虧損為64.9萬美元，而上一季為1,100萬美元；非GAAP營業利潤率從-1.7%改善至-0.1%。本季非GAAP調整總額為600萬美元，其中包括與我們在英國的業務相關的300萬美元和與花園設施合併相關的300萬美元。其中，銷售、一般及行政費用為 500 萬美元，商品成本為 100 萬美元。

Below the line, net interest expense was in line with the prior year. Other expense for the quarter was $600,000 compared with $6 million. Non-GAAP net loss for the quarter was $5 million compared with $12 million, GAAP loss per share was $0.16 compared with $0.51 and non-GAAP loss per share was $0.09 compared with $0.18. Adjusted EBITDA for the quarter was $26 million compared with $17 million.

在淨利息支出方面，與上年持平。本季其他支出為 60 萬美元，而去年同期為 600 萬美元。 （非公認會計準則）本季淨虧損為500萬美元，而去年同期為1,200萬美元；以美國通用會計準則（GAAP）計算，每股虧損為0.16美元，而去年同期為0.51美元；以非美國通用會計準則（Non-GAAP）計算，每股虧損為0.09美元，而去年同期為0.18美元。本季調整後EBITDA為2600萬美元，去年同期為1700萬美元。

Now let me provide highlights from the fourth quarter from our two segments, starting with Pet. Net sales for the Pet segment was $428 million, a decrease of 2% due to the closure of our UK operations and lower durable sales, both the result of deliberate actions to simplify the business and enhance profitability. These impacts were partially offset by strong growth in our Animal Health businesses, particularly within our professional portfolio and equine.

現在讓我從寵物業務開始，為大家介紹我們兩個業務板塊第四季的亮點。寵物業務淨銷售額為 4.28 億美元，下降 2%，原因是我們關閉了英國的業務以及耐用品銷售額下降，這兩點都是我們為簡化業務和提高盈利能力而採取的刻意措施的結果。這些影響部分被我們動物保健業務的強勁成長所抵消，尤其是在我們的專業產品組合和馬匹領域。

While demand for durables remain soft, consumables performance continued to be relatively stable, supported by positive point-of-sale trends in the fourth quarter. Consumables now represent roughly 84% of total Pet segment sales an all-time high, highlighting the strength and resilience of our core business. 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.

儘管耐用品需求依然疲軟，但消費品表現仍持續保持相對穩定，這得益於第四季的積極銷售點趨勢。消耗品目前約佔寵物業務總銷售額的 84%，創歷史新高，凸顯了我們核心業務的實力和韌性。在整個寵物用品領域，我們保持了市場份額，並在狗咬膠、寵物鳥、馬匹和跳蚤蜱蟲防治以及我們的專業產品組合方面取得了成長。

E-commerce continues to play an important role in our channel mix, representing 27% of total Pet segment sales consistent with the prior two quarters and reflecting steady consumer engagement across digital platforms.

電子商務在我們的通路組合中繼續發揮重要作用，佔寵物業務總銷售額的 27%，與前兩個季度一致，反映出消費者在數位平台上的穩定參與。

Non-GAAP operating income was $31 million compared with $35 million due to slightly lower volumes combined with the timing of investments and productivity and commercial initiatives. Non-GAAP operating margin contracted to 7.2% from 8%. Adjusted EBITDA for the segment was $41 million compared with $45 million.

由於銷售量略有下降，加上投資、生產力和商業措施的時間安排，非GAAP營業收入為3,100萬美元，而去年同期為3,500萬美元。非GAAP營業利益率從8%收縮至7.2%。該業務部門的調整後 EBITDA 為 4,100 萬美元，而去年同期為 4,500 萬美元。

Now moving to Garden. Net sales for the Garden segment were $250 million, a 7% increase we benefited from an extended selling season driven by favorable fourth quarter weather following a cool and wet third quarter.

現在搬到花園。花園業務部門的淨銷售額為 2.5 億美元，增長了 7%，這得益於第四季度天氣有利，從而延長了銷售季，此前第三季度天氣涼爽潮濕。

We also saw improved sell-through aided by additional product placements strong retail execution and disciplined inventory management. Our wild bird, grass seed, fertilizer and packet seed businesses delivered particularly strong quarters with growth in both sales and share across retailers and channels.

我們也看到，在增加產品陳列位置、強而有力的零售執行和嚴格的庫存管理的幫助下，銷售率有所提高。我們的野生鳥類、草籽、肥料和袋裝種子業務在各季度均表現強勁，在零售商和通路的銷售和市場份額均有所增長。

The strong fourth quarter rebound made this our biggest point-of-sale year ever in Garden despite the reduction in our distribution business, variable weather earlier in the year and lower home center traffic, a testament to the agility of our teams and the strength of our retail partnerships in Garden.

儘管我們的分銷業務有所減少，年初天氣多變，家居中心客流量下降，但第四季度強勁反彈，使我們在花園市的銷售額創下了有史以來最高的年度紀錄，這證明了我們團隊的靈活性和我們在花園市零售合作夥伴關係的強大實力。

Garden e-commerce sales grew at a double-digit rate across every category, surpassing 10% of total segment sales for the first time, enhanced product content improved videos and targeted new item introductions increased click-through, add to cart and conversion rates across retailer platforms.

園藝類電商銷售額在所有類別中均實現了兩位數的成長，首次超過了該細分市場總銷售額的 10%。增強的產品內容、改進的影片以及有針對性的新品推廣提高了零售商平台上的點擊率、加入購物車率和轉換率。

Results remained especially strong in wild bird and grass seed, where we continue to lead the category and deliver robust growth across both pure-play and omnichannel partners. Given the garden industry's relatively low digital penetration today, we see significant runway for sustained online growth across our categories in future quarters.

野生鳥類和草籽業務的業績依然強勁，我們繼續引領該品類，並在純通路和全通路合作夥伴中實現了強勁成長。鑑於目前園藝產業的數位化滲透率相對較低，我們認為未來幾季我們各個品類的線上業務都有很大的持續成長空間。

Non-GAAP operating income came in at $1 million, an increase of $26 million with non-GAAP operating margin expanding to a positive 0.4% from a negative 10.6%. Adjusted EBITDA totaled $11 million, an improvement of $25 million underscoring the strong finish to the year.

非GAAP營業收入為100萬美元，比去年同期增加了2,600萬美元；非GAAP營業利潤率從-10.6%擴大到-0.4%。調整後 EBITDA 總計 1,100 萬美元，比上年同期成長 2,500 萬美元，凸顯了本年度強勁的收官表現。

Turning now to the balance sheet and cash flows. Cash flow from operations was $333 million in fiscal '25 compared with $395 million a year ago. Our ongoing focus on working capital efficiency resulted in an additional $36 million reduction in inventory, our tenth straight quarter of year-over-year improvement. CapEx for the year was $41 million, about 4% lower than last year, reflecting prudent investments primarily in productivity-enhancing initiatives and essential maintenance projects.

現在來看資產負債表和現金流量表。2025財年經營活動產生的現金流量為3.33億美元，而去年同期為3.95億美元。我們持續專注於營運資金效率，使庫存額外減少了 3,600 萬美元，這是我們連續第十個季度實現同比增長。本年度資本支出為 4,100 萬美元，比上年減少了約 4%，反映出公司在提高生產力的舉措和必要的維護項目方面進行了審慎的投資。

Depreciation and amortization were $85 million, 7% below prior year, consistent with our focus on efficient capital deployment. By year-end, cash and cash equivalents totaled $882 million, up $129 million, underscoring our strong liquidity and consistent cash generation. Total debt was $1.2 billion, unchanged from the prior year.

折舊和攤提費用為 8,500 萬美元，比上年減少 7%，符合我們對高效資本部署的關注。截至年底，現金及現金等價物總額為 8.82 億美元，增加了 1.29 億美元，凸顯了我們強大的流動性和持續的現金產生能力。總債務為12億美元，與上年持平。

Gross leverage ended the year at 2.8 times both below last year and our target range of 3 to 3.5 times, net leverage was approximately 0.8%, supported by our solid cash position and we had no borrowings outstanding under our credit facility at year-end. This balance sheet strength provides the flexibility to invest in growth, maintain financial resilience and return value to shareholders.

總槓桿率年末為 2.8 倍，低於去年同期和我們 3 至 3.5 倍的目標範圍；淨槓桿率約為 0.8%，這得益於我們穩健的現金狀況，並且截至年底，我們在信貸安排下沒有未償還的借款。穩健的資產負債表為投資成長、維持財務韌性和為股東創造價值提供了靈活性。

Looking ahead to fiscal 2026. And as Niko mentioned earlier, we are guiding non-GAAP EPS to $2.70 a share or better, reflecting continued focus on operational excellence, margin expansion and disciplined cost management.

展望2026財年。正如尼科之前提到的，我們預計非GAAP每股收益將達到2.70美元或更高，這反映了我們持續專注於卓越營運、利潤率擴張和嚴格的成本管理。

While the tariff environment remains fluid, we currently project incremental year-over-year gross tariff exposure of roughly $20 million over the next 12 months. The majority of the exposure is within the Pet segment. We are expecting to offset most of the tariffs through pricing and portfolio and supply chain actions.

儘管關稅環境仍然不穩定，但我們目前預計未來 12 個月內，年比新增關稅總額約為 2,000 萬美元。大部分曝光量集中在寵物領域。我們預計透過價格、產品組合和供應鏈方面的措施來抵消大部分關稅影響。

We plan to invest approximately $50 million to $60 million in CapEx primarily maintenance and productivity initiatives across both segments, underscoring our commitment to high-return projects that strengthen operations and enhance profitability.

我們計劃在資本支出方面投資約 5,000 萬至 6,000 萬美元，主要用於兩個業務部門的維護和生產力提升項目，這凸顯了我們對能夠加強營運和提高盈利能力的高回報項目的承諾。

For the first quarter, we expect non-GAAP earnings per share of approximately $0.10 to $0.15, consistent with normal seasonal trends. It's important to note that last year's first quarter benefited meaningfully from favorable timing of both shipments and promotional activity.

我們預計第一季非GAAP每股收益約為0.10至0.15美元，與正常的季節性趨勢一致。值得注意的是，去年第一季受益於出貨和促銷活動的有利時機。

This year, we also have one less shipping day between Christmas and the end of our fiscal quarter ending December 27. In addition, the results will reflect a temporary shipment hold we initiated with a large retailer and the shifting of certain orders into the second quarter.

今年，從聖誕節到 12 月 27 日結束的財政季度末，我們的出貨日也減少了一天。此外，業績也將反映出我們與一家大型零售商暫時停止出貨，以及將某些訂單轉移到第二季的情況。

As a reminder, the first quarter is typically one of our smaller periods and not indicative of full year performance. As always, our outlook excludes any potential impacts from acquisitions, divestitures or restructuring activities that may occur during fiscal '26, including projects under our cost and simplicity agenda.

再次提醒，第一季通常是我們業務量較小的時期之一，並不代表全年的業績。與往常一樣，我們的展望不包括 2026 財年期間可能發生的收購、剝離或重組活動的任何潛在影響，包括我們成本和簡化議程下的項目。

That concludes our prepared remarks. Operator, please open the line for questions.

我們的發言稿到此結束。接線員，請開通提問線。

(Operator Instructions)

（操作說明）

Brad Thomas, KeyBanc Capital Markets.

Brad Thomas，KeyBanc Capital Markets。

Good afternoon. Thanks for taking my question. I wanted to ask about the operating margin at a high level. You all have been doing a tremendous job of driving improvements and efficiencies. And so as we think about this upcoming fiscal year, I was hoping you could talk about some of those puts and takes and how they sort of are expected to net out between cost and simplicity, tariffs, demand challenges, et cetera? Thank you.

午安.謝謝您回答我的問題。我想大致了解一下營業利益率。你們在推動改進和提高效率方面都做得非常出色。因此，在展望即將到來的財政年度時，我希望您能談談其中的一些利弊，以及成本和簡易性、關稅、需求挑戰等因素預計將如何相互抵消？謝謝。

Brad, this is Niko. Yes, we're going to continue to work on Cost and Simplicity. So we have every intention of expanding margin in '26, we may not get as dramatic results as we've got in the last few years because we're seeing the low-hanging fruit has been picked in a lot of ways.

布拉德，這是尼科。是的，我們將繼續致力於降低成本和簡化操作。因此，我們完全有信心在 2026 年擴大利潤率，但我們可能不會像過去幾年那樣取得如此顯著的成果，因為我們看到在很多方面，容易實現的目標已經被摘取了。

The other thing I would say, don't underestimate the effect that product mix has. So we have to see how that plays out as well. But I would say for right now, as we put together our plans for '26 we are expecting to continue to expand margin.

另外我想說的是，不要低估產品組合的影響。所以我們還得看看事情會如何發展。但就目前而言，在我們制定 2026 年計畫時，我們預計將繼續擴大利潤率。

Great. And if I could ask a follow-up with respect to the Garden segment. It seems like some really strong execution there. I know that the months ahead will be important as we try to figure out what sell-in can look like for the spring 2026 garden season. But can you give us a little more color about how you're feeling about that? And what the outlook of that garden category may be for next year?

偉大的。我可以就花園部分再問一個後續問題嗎？看起來執行得非常出色。我知道接下來的幾個月非常重要，因為我們需要弄清楚 2026 年春季園藝季的銷售情況會是什麼樣子。但您能否更詳細地描述一下您對此的感受？那麼，明年花園類產品的市場前景如何呢？

Brad, it's J.D. I'll take that question. Thanks for the question. I'd say that we're looking forward, of course, everything is dependent on what takes place in season, particularly around weather. But I'd say going into it, we are cautiously optimistic.

布拉德，我是J.D.，這個問題我來回答。謝謝你的提問。當然，我們都很期待未來，一切都取決於當季的情況，尤其是天氣狀況。但我認為，就目前而言，我們持謹慎樂觀的態度。

I think, one of the things that gives us reason to believe is our year-over-year points of distribution or total distribution points, SKU store combinations, distribution gains, if you will. We feel great about that. It's going to -- we're going to show an increase year-over-year.

我認為，讓我們有理由相信的事情之一是我們的年度分銷點或總分銷點、SKU 商店組合、分銷增長等等。我們對此感到非常滿意。將會－我們將實現同比成長。

If you exclude the pottery business that we exited, our points of distribution will be up 8% year-over-year. And if you look at manufactured products, products that we manufacture in our plants, it will be up double digits.

如果排除我們退出的陶器業務，我們的分銷點將年增 8%。如果你看看製成品，也就是我們在工廠生產的產品，你會發現銷售量會成長兩位數。

So I think that strong distribution base execution by our team going into season, the controllable causal factors we feel great about. Now it's up to mother nature to do her part but I'd say cautiously optimistic would be my by terminology, looking at the season.

所以我認為，我們團隊在賽季開始前強大的分銷基礎執行力，以及我們感覺良好的可控因果因素，都讓我們感到非常滿意。現在就看大自然母親如何發揮作用了，但就目前的情況來看，我會用謹慎樂觀來形容。

That's very helpful.

那很有幫助。

Jim Chariker, [Mones Cresp and Hart]

吉姆·查里克[莫內斯·克雷斯普和哈特]

Hi, thanks for taking my question. Just want to talk about -- it looks like corporate expense was up about $11 million in fourth quarter after being down in the first three quarters. So I just wanted to get some more color on that. And then could you quantify the impact of tariffs on fourth quarter, please?

您好，感謝您回答我的問題。想跟大家說一下——看起來公司支出在前三個季度下降之後，第四季增加了約 1100 萬美元。所以我只是想為它增添一些色彩。那麼，您能否量化一下關稅對第四季的影響？

So corporate expenses, I mean, a lot of it had to do with kind of a quarterly variation of timing expenses during the year when compared to last year. But there is that element but on top of that, we had some investments that we made to support commercial growth in '26, some of which that we recorded in corporate.

所以，公司支出方面，我的意思是，很大程度上與今年季度支出時間安排的變化有關，與去年相比。但除此之外，我們在 2026 年進行了一些投資以支持商業成長，其中一些投資已計入公司帳目。

And then we also had some other miscellaneous true-ups we had related to certain reserves and whatnot. So it was really a combination of three different elements. Nothing that would be kind of suggest anything structural on a full year basis going into this year.

此外，我們還有一些與某些儲備金等相關的其他雜項調整。所以它其實是三種不同因素的結合。今年沒有任何跡象表明今年全年結構性問題會有任何變化。

Great. And then on the tariff impact for the quarter?

偉大的。那麼，關稅對本季的影響如何呢？

Yeah. So tariffs -- gross tariffs were, I want to say, roughly $7 million, $8 million in the fourth quarter.

是的。所以，第四季的關稅總額，我想說，大約是 700 萬到 800 萬美元。

Okay. And then last quarter, you talked about investing behind, I think, a new product launch for Pet. Just curious what that spend looks like and then how that product performed for you?

好的。然後上個季度，您提到要投資，我想是為了推出寵物的新產品。我只是好奇這筆支出具體是多少，以及該產品的使用體驗如何？

Yeah. We've got a -- this is John. The product launch we mentioned was the Farnam Endure gold fly spray, and that's a new EPA-approved product. And the efficacy is significantly better. We're in the process of launching it right now.

是的。我們有一位──這位是約翰。我們提到的產品發布是 Farnam Endure 金色驅蠅噴霧劑，這是一款獲得美國環保署 (EPA) 批准的新產品。而且療效明顯更好。我們正在著手推出這項服務。

Customer feedback is really strong. But it's a bit of a seasonal business. So we won't really see that takeaway really until next season, kind of March, April, May, June.

客戶反饋非常正面。但這多少有點季節性。所以，我們可能要等到下個賽季，也就是三月、四月、五月、六月，才能真正看到那個效果。

We also made some incremental investment at Farnam in Q4 that ended up paying off quite well where we took several share points in equine during the quarter.

我們在第四季度對 Farnam 進行了一些增量投資，最終獲得了相當不錯的回報，我們在該季度獲得了馬匹業務幾個百分點的市場份額。

Yeah, we did. We continue to invest where we see high opportunity and high return, and that was one of them, and that was focused on digital and content and paid off.

是的，我們做到了。我們繼續投資那些我們認為機會多、回報高的地方，而這正是其中之一，我們專注於數位和內容領域，並且獲得了回報。

Great to hear. Thank you.

很高興聽到這個消息。謝謝。

Bob Labick, CJS Securities.

Bob Labick，CJS Securities。

Good afternoon. Thanks for taking our questions. Kind of sticking with the tariff theme, obviously, you're navigating it through like everyone else as well. You said price is going to be one lever. Can you talk -- have your retail customers accepted your pricing? Have they passed it along? And kind of when will you know consumer, I guess, acceptance and elasticity, how are you thinking about those?

午安.謝謝您回答我們的問題。顯然，我們還是要繼續討論關稅問題，你也和其他人一樣，正在努力應對這個問題。你說過價格將是其中一個槓桿。您能談談嗎？您的零售客戶是否接受您的定價？他們傳下去了嗎？那麼，您什麼時候才能了解消費者的接受度和彈性呢？您是如何看待這些問題的？

Maybe I'll answer the first part where we are in the negotiations. And maybe, John, maybe you can jump in with the others. Yes, I would say we're more than half the way there in terms of negotiations with customers. It's almost exclusively on the Pet side, a bit on Garden. And they've obviously been very challenging.

或許我可以回答第一個問題，那就是我們目前在談判中的進展。約翰，或許你可以加入其他人。是的，我認為我們在與客戶的談判中已經完成了一半以上。幾乎全部是寵物用品，只有一小部分是園藝用品。而且它們顯然極具挑戰性。

We had to hold some shipments as a result of those discussions with one of our customers, which we mentioned a bit earlier. So we are expecting to be done with those discussions, I think, kind of into this quarter, maybe early Q2. John, do you want to comment on the consumer part and passing through the retailer?

由於之前我們和一位客戶的討論，我們不得不暫停一些貨物的發貨。因此，我們預計這些討論將在本季結束，或許是第二季初。約翰，你想就消費者環節以及透過零售商購買商品發表一下看法嗎？

Yeah. So we haven't seen the prices go up yet in the marketplace. So a little bit TBD. Now we can model what we've done in the past and we do a good job of doing that. And that speaks to probably around elasticity and it's been pretty consistent.

是的。所以目前市場上還沒有出現價格上漲的現象。所以目前還有些待定。現在我們可以藉鏡過去的經驗，而且我們在這方面做得很好。這可能與彈性有關，而且一直相當穩定。

But we do everything we can to in these tariffs, right? We look at country of origin and we look at our SKUs and make sure we got the right SKUs and if we have to optimize them and then pricing is a partnership with the customer, and we do it as last resort but we do do it and have done it before.

但是我們在這些關稅方面已經竭盡所能了，對吧？我們會查看原產國，查看我們的 SKU，確保我們擁有正確的 SKU，如果需要優化，我們會進行最佳化。定價是與客戶合作的結果，我們會將其作為最後的手段，但我們確實會這樣做，而且以前也這樣做過。

Yeah. And we don't price to build margin. We price to offset some of the costs, and that's something we're very, very disciplined about.

是的。我們定價不是為了提高利潤率。我們透過定價來抵銷部分成本，在這方面我們非常非常嚴格。

Yeah. I mean, Niko mentioned earlier that we're in a position to modestly expand margin this year, and it's clearly going to be the ongoing Cost and Simplicity efforts, including the tariff products as well as other projects we've got going on that really are going to be needed to get us over the line and be able to expand margin.

是的。我的意思是，尼科之前提到過，我們今年有能力小幅擴大利潤率，顯然，持續的成本和簡化工作，包括關稅產品以及我們正在進行的其他項目，對於我們最終實現目標並擴大利潤率至關重要。

Okay. Great. And obviously, you've had a lot of progress over the last few years with Cost and Simplicity and margin improvement. Can you talk about how much your -- you said, I guess, in Q4 a little bit, you reinvested for growth in '26. How do you think about changing the investment level or either promotional activity or brand building as you continue to get this margin improvement from Cost and Simplicity?

好的。偉大的。顯然，過去幾年你們在成本控制、簡化流程和利潤率提升方面取得了很大進展。你能談談你的——我想，你剛才提到，在第四季度，你為2026年的成長進行了再投資。隨著成本和簡化措施帶來的利潤率持續提高，您考慮如何調整投資水準、促銷活動或品牌建立？

Yeah. We're definitely up in our game in terms of investment around the consumer around digital. And also, we want to up our game around innovation. So really, those are the three areas we need to get better at and put some money behind. We're trying to stay agile in a lot of ways. So the great thing about digital is we can make an investment and see how it does and pivot based off of that.

是的。我們在圍繞消費者和數位領域的投資方面絕對處於領先地位。此外，我們希望在創新方面提升水準。所以，這三個面向確實是我們需要改進並投入資金的領域。我們正努力在許多方面保持靈活。所以數位化的一大好處就是我們可以進行投資，看看效果如何，然後根據效果調整策略。

So when we see something that works, we tend to continue to feed the beast. And then if something doesn't, we'll pivot and continue to tweak. So it's a very dynamic agile way of promoting product, mainly through retail media. But we're also building out a lot more content than we have in the past. And you can see that with our feeding frenzy, wild bird product that's out there now.

所以，當我們看到某種方法有效時，我們往往會繼續沿用它。如果效果不理想，我們會調整方向並繼續改進。所以這是一種非常動態且靈活的產品推廣方式，主要透過零售媒體進行推廣。但我們也正在製作比以往更多的內容。從我們現在推出的野生鳥類餵食熱潮產品中，你就能看出這一點。

And we've had some nice results there and plan on building on that. That's really a really nice case study for the company, and we're going to be doing more of that going forward.

我們在這方面取得了一些不錯的成果，並計劃在此基礎上繼續努力。這對公司來說真是一個非常好的案例研究，我們今後會進行更多類似的研究。

Okay great thanks so much.

好的，非常感謝。

Brian McNamara, Canaccord Genuity

Brian McNamara，Canaccord Genuity

Good afternoon, guys. Thanks for taking the questions. So I know you don't guide on the top line but I was hoping you could provide some kind of high-level thoughts on how you see 2026 potentially playing out? And what outside of weather could drive better or worse top line trends?

下午好，各位。謝謝您回答問題。我知道您不負責制定總體方針，但我希望您能就您認為 2026 年可能的發展趨勢提供一些高層次的看法？除了天氣之外，還有哪些因素會影響營收走勢？

Yeah. I mean our view right now is that top line is going to be challenging once again as it was in '25, we think '26 is going to be extremely challenging. For reasons that we sort of outlined, we've got a little bit of a headwind with tariffs.

是的。我的意思是，我們目前的看法是，營收成長將再次面臨挑戰，就像 2025 年一樣，我們認為 2026 年將面臨極大的挑戰。正如我們之前概述的那樣，我們在關稅方面遇到了一些阻力。

Consumer confidence is at a low point right now. So we really need to see how the consumer is going to react to pricing and really their behavior and the whole notion of the bifurcation of income right now is very real. We're seeing it in both of our categories.

目前消費者信心處於低潮。所以，我們真的需要看看消費者對定價的反應，以及他們的行為，還有目前收入分化的整個概念，這都是非常現實的。我們在這兩個類別中都看到了這種情況。

So it's a little bit of a wait and see. I think, again, we're not going to guide on that top line, but we make every effort possible to grow every year. And that's what we're going to do going into '26. So that's about all we can say right now. More to come as we get deeper into the year.

所以現在還得等等看。我認為，我們不會再以營收為導向，但我們會盡一切可能努力實現每年的成長。這就是我們進入 2026 年要做的事情。所以，目前我們只能說這麼多。隨著時間推移，我們將陸續推出更多內容。

And then, as always, weather is going to play a pretty big impact, particularly on the Garden side.

然後，像往常一樣，天氣將會產生相當大的影響，尤其是在花園球場一側。

Niko, I think one thing that I would add to that is the SKU rationalization and some of the portfolio management that we've done has also been a drag on the top line, but it's one of the reasons why our margins have been so strong. So we'll continue to look at SKU rationalization. It's an ongoing process.

Niko，我認為我還要補充一點，我們所做的 SKU 合理化和一些產品組合管理也拖累了營收，但這正是我們利潤率如此強勁的原因之一。因此，我們將繼續研究 SKU 合理化方案。這是一個持續的過程。

Yes, that's absolutely right. Great.

是的，完全正確。偉大的。

Great. And then secondly, I know you mentioned, I think, durables are 16% of your pet sales. How did durables do overall as a category? Is that still a double-digit decline in Q4?

偉大的。其次，我知道你有提到過，耐久財佔寵物銷售額的 16%。耐久財整體表現如何？第四季仍然是兩位數下滑嗎？

Yeah. It's -- yes, 16% is the right number, and it was a double-digit decline in Q4. Keep in mind what Brad said as well, a big piece of that decline was our proactive decisions to discontinue low margin, no margin SKUs, and that was completed in half one. So we're lapping that. We've got another first half of next year to lap that. But that was a huge contributor to the decline.

是的。是的，16%是正確的數字，而且第四季出現了兩位數的下降。也要記住布萊德說過的話，造成這種下滑的一個重要原因是我們主動決定停止銷售低利潤、無利潤的 SKU，而這項工作在第一年上半年就完成了。所以我們已經超越了它。我們還有明年上半年的時間來超越這個目標。但這正是導致其衰退的一個重要因素。

Yeah. I mean we -- the hope is kind of as we get into the second half of this year, we'll be at a point where year-over-year durables trends are not significant enough that we're discussing it quarterly.

是的。我的意思是，我們希望——到了今年下半年，耐用品同比趨勢不會那麼顯著，以至於我們需要按季度進行討論。

Great. And what's the company's house view on pet ownership trends currently? And kind of what data do you focus on to inform that view?

偉大的。那麼，該公司對目前寵物飼養趨勢有何看法？那麼，你主要關注哪些數據來形成這種觀點呢？

Yeah. We've got a variety of sources of data. The view is it's stabilizing and is pretty stable right now. We do have a live animal business as well. And in Q4, we saw that stable kind of up slightly also slightly, but we'll take it, right? So as we look forward into next year, we do believe that's stabilized. And if I looked at the categories that we compete in for the year, I would hope they'd be up. They'd be stable or up slightly low single digits.

是的。我們擁有多種資料來源。目前的情況正在趨於穩定，相當穩定。我們也經營活體動物業務。第四季度，我們看到這種穩定的局面略有上升，但我們會接受的，對吧？所以展望明年，我們相信情況已經趨於穩定。如果我查看我們今年參加的比賽類別，我希望它們都能上榜。它們要么保持穩定，要么略微上漲個位數。

Just to pile on to what John said, our live goods -- our live animal business sequentially had less and less declines than actually Q4 posted about a 1% gain. And that gives us some optimism because it's quite a trend. We can see the trend heading in a very positive way.

補充約翰的說法，我們的活體產品——我們的活體動物業務的跌幅逐季減少，而實際上，第四季卻實現了約 1% 的成長。這讓我們感到樂觀，因為這確實是一種趨勢。我們可以看到這一趨勢正朝著非常正面的方向發展。

Great. And then just the last one on capital allocation. I know the company repurchased quite a bit of stock from Q1 to Q3 and very little in Q4, and you're sitting on a record cash balance. So I'm curious how we should read that as the M&A pipeline improves? Or are you keeping dry powder or is it something else?

偉大的。最後是關於資本配置的最後一個問題。我知道公司在第一季到第三季回購了相當多的股票，而第四季回購的股票很少，而且你們的現金餘額也創下了歷史新高。所以，隨著併購通路的改善，我們該如何解讀這現象呢？或是你保存的是乾粉，還是別的什麼東西？

We're definitely keeping dry powder, and we're actively on the hunt. We are -- as you know, Brian, the market is not as robust as we'd like it to be in terms of interesting opportunities, particularly in margin-accretive pet consumables, which is a bit our bull's eye, but we continue to be optimistic that we're going to find some deals to do this year.

我們肯定會保持觀望態度，並且正在積極尋找機會。如你所知，布萊恩，就有趣的投資機會而言，市場並不像我們希望的那樣強勁，尤其是在利潤率高的寵物消耗品領域，而這正是我們重點關注的領域。但我們仍然樂觀地認為，今年我們會找到一些交易可以達成。

But we're also still remaining opportunistic on the stock price. Even this quarter, we bought back about $18 million in the quarter. And so when we see DIPs, we're going to take advantage of those because we do have conviction that it's undervalued and there's a tremendous opportunity here. So we'll always be there to return money to shareholders.

但我們仍然對股價保持機會主義態度。即使是本季度，我們也回購了約 1800 萬美元的股票。所以，當我們看到DIP（債務融資）時，我們會利用這些機會，因為我們堅信它被低估了，這裡蘊藏著巨大的機會。所以我們會一直努力，為股東帶來回報。

Great, I appreciate the call.

太好了，謝謝你的來電。

Andrea Teixeira, JPMorgan.

Andrea Teixeira，摩根大通。

Hi, good afternoon, everyone. Thanks for taking the question. First, can you comment on the pricing that you're embedding into fiscal '26? And understandably, you mentioned, durables may still have a double-digit decline. I understand first half similar to what happened in this quarter, given the timing of some of the SKU rationalization. So maybe if you can kind of like let us know how the underlying pricing embedded into your guide?

大家好，下午好。感謝您回答這個問題。首先，您能否談談您在 2026 財年中採用的定價策略？正如您所提到的，耐用品銷量可能仍將出現兩位數的下滑，這是可以理解的。考慮到部分 SKU 精簡的時間安排，我認為上半年的情況與本季類似。所以，您能否稍微告訴我們一下您的指南中嵌入的底層定價是如何實現的？

And then my second question is also related to the guidance in fiscal '26. On the margin front, you obviously made significant progress in your rationalization process. What should we be thinking about margins going forward? Should we be keeping that same progress? I mean taking the fourth quarter, of course, there's some seasonality there.

我的第二個問題也與 2026 財政年度的指導意見有關。在利潤率方面，你們的合理化過程顯然取得了顯著進展。展望未來，我們該如何看待利潤率？我們應該保持目前的進展嗎？我的意思是，以第四季度為例，當然，其中存在一些季節性因素。

So if you can help us kind of parse out what we should be thinking about margins?

所以，如果您能幫我們釐清一下關於利潤率我們應該考慮哪些方面呢？

Thanks, Andrea. Yes, pricing, we're looking to take some price fairly modest, about 1% going into '26, really designed to just offset tariffs and some commodity exposure. So pretty modest overall, nothing like we had a few years ago when inflation went completely bananas.

謝謝你，安德里亞。是的，關於定價，我們希望將價格控制在相當適中的水平，到 2026 年約為 1%，這主要是為了抵消關稅和一些大宗商品風險。所以整體來說相當溫和，遠不及幾年前通貨膨脹完全失控的情況。

In terms of margin, we go into every year wanting to expand margin. That's really part of our financial algorithm. In Q4, we expanded by 310 basis points going forward, it's going to be a little bit more modest. We've gotten through a lot of the low-hanging fruit but we are planning on expanding margin into '26 for total company.

就利潤率而言，我們每年都希望擴大利潤率。這實際上是我們財務演算法的一部分。第四季我們擴大了 310 個基點，未來將會更溫和一些。我們已經完成了許多容易實現的目標，但我們計劃在 2026 年擴大公司整體利潤率。

William Reuter, Bank of America.

威廉‧羅伊特，美國銀行。

So my first question is in Lawn & Garden. So you said your points of distribution, excluding the exit of pottery was up -- looks to be up 10% for next year. It sounds like there maybe is like 1% price in there. If weather were to be equal, I don't see why we wouldn't see a lot of growth in the Lawn & Garden revenues next year. I guess what is the conservatism that's offsetting that and that your tone doesn't sound more bullish?

我的第一個問題是關於草坪和花園的。所以你說你的分銷點（不包括陶器退出市場）增加——明年看起來會成長 10%。聽起來好像裡麵包含大約 1% 的價格。如果天氣條件保持不變，我認為明年草坪和花園業務的收入應該會有很大的成長。我想，是什麼保守主義抵銷了這種情緒，使得你的語氣聽起來沒有更樂觀？

Well, I did say cautiously optimistic. But just to add a couple of -- a little more color. So excluding the pottery exit, we'll be up high single digits and items that we manufacture will be up double digits. So yes, we're optimistic very bullish with regard to that.

嗯，我的確說過是謹慎樂觀。但為了增添一些色彩，還是再補充幾點吧。因此，如果排除陶器退出市場，我們將實現接近兩位數的成長，而我們生產的產品將實現兩位數的成長。所以，是的，我們對此非常樂觀。

Weather is always an unknown, and we don't plan for improvement in weather year-over-year. However, if there is improvement in weather, then I think we have a very bullish outlook on the year. So again, I'm just trying to keep it somewhat cautious before the season. We are a seasonal business. Last year, during the peak 16 weeks of the season, we had rain on eight of those weekends.

天氣總是難以預測的，我們無法預料天氣會逐年好轉。但是，如果天氣好轉，我認為我們對今年的前景非常樂觀。所以，我只是想在賽季開始前保持謹慎。我們是季節性企業。去年，在賽季最旺盛的 16 周里，有 8 個週末都下雨了。

So hopefully, year-over-year, there is improvement there. And if there is, then I think we feel great about our prospects for the year.

所以希望，與去年相比，情況會有所改善。如果真有這樣的結果，那麼我認為我們對今年的前景充滿信心。

I would say, too, on the top line, we are also -- remember, we're still unwinding a large vendor that has chosen to go direct. And so that's going to be a headwind in '26 as well, similar to what we had in '25.

我還要補充一點，從整體來看，我們也——記住，我們仍在逐步淘汰一家選擇直接營運的大供應商。因此，這在 2026 年也會是個不利因素，類似於我們在 2025 年遇到的情況。

The same vendor.

同一家供應商。

Yeah. Yeah.

是的。是的。

The 8 of 16 key weekends, when does that period start for you?

16個關鍵週末中的第8個，對你來說這段時間是從什麼時候開始的？

March through May.

三月至五月。

Okay. So basically, March 1 is the first of those days, okay. And the second is going to be a little bit of a follow-up, but you are seeing modest M&A when asked about share repurchases, you said you purchased $18 million.

好的。所以基本上，3月1日是這些日子中的第一天，好嗎？第二個問題算是後續，但你可以看到一些溫和的併購活動。當被問及股票回購時，你說你回購了價值 1800 萬美元的股票。

It's just so small in the context of how much money you guys have. Do you. I mean, are you just going to sit on the cash until the M&A environment and opportunities become more plentiful or would you consider either a large dividend or share repurchase at some point?

跟你們的財富相比，這簡直太少了。你。我的意思是，你是打算一直持有現金，直到併購環境和機會變得更加充裕，還是會在某個時候考慮發放高額股息或回購股票？

Well, the $18 million is just this quarter. If you look at last year, we did over $150 million, which is a little more relevant. We're going to probably go through that with our Board. It's not something we're prepared to discuss right now. My bias and Brad's bias would be to hang on to the money a little while longer and really look for M&A.

嗯，這1800萬美元只是本季的收入。如果看看去年，我們賺了超過 1.5 億美元，這更有參考價值。我們可能會和董事會討論這個問題。我們現在不方便討論這個問題。我和布萊德的傾向是，再持有這筆資金一段時間，認真尋找併購機會。

For us, that's a lot more exciting, helps grow the top line, help fill out the portfolio. We believe that's really why a lot of shareholders hold the stock is our ability to do M&A. It's really foundational to the company. So that would be our bias. That said, we want to make sure we're doing right by our shareholders, and that's why we continue to buy the stock back.

對我們來說，這更令人興奮，有助於提高營收，完善產品組合。我們認為，許多股東持有我們股票的真正原因是我們有能力進行併購。這對公司而言至關重要。所以這就是我們的偏見。也就是說，我們希望確保不辜負股東的期望，所以才會繼續回購股票。

Got it. Okay.

知道了。好的。

Cool. I'll pass to others. Thank you.

涼爽的。我會把球傳給其他人。謝謝。

Carla Casella, JPMorgan.

卡拉‧卡塞拉，摩根大通。

Hi, thanks for the question. First one is around, you mentioned some shipments that were going to move from 1Q into 2Q. Did you quantify that?

您好，感謝您的提問。第一個問題已經解決了，你提到了一些將從第一季轉移到第二季的貨物運輸。你量化分析過嗎？

No.

不。

Will you?

你會？

No, no. That number is evolving. So It would just be a --

不，不。這個數字在變化。所以它只是一個--

Yeah. Carla, we won't quantify it because there's a number of factors that are at play. It's not only the shipments that we know of right now. But -- and we've talked about this a lot over the years, when we get into that December time frame, so towards the end of Q1, you're competing for trucking with the large retailers as they're kind of winding down Christmas.

是的。卡拉，我們無法對其進行量化，因為其中涉及許多因素。不僅僅是我們目前所知的這些貨運。但是——這些年來我們已經多次討論過這個問題——到了 12 月份，也就是第一季末，你就要和大型零售商爭奪貨運業務，因為他們正在逐步結束聖誕節的銷售工作。

And a lot of times, we don't know if the trucks are going to show up. And so what we had last year was all the stars sort of aligned for Q1. If you recall, last year, Q1, we had a little bit of a, call it, pull forward. We had shipments that normally ship in Q2, fall into Q1. Our top line was up and then Q2, early on was a little bit softer.

很多時候，我們不知道貨車會不會來。所以去年第一季所有有利條件都具備了。如果你還記得的話，去年第一季度，我們稍微提早了一些。我們有一些原本應該在第二季出貨的貨物，現在卻提前到第一季出貨了。我們的營收成長了，但第二季初期略顯疲軟。

We have a little bit of the reverse effect that we think is going to happen. And I mean the delayed shipments we know about, but then there's also the noise of will those trucks show up sort of at the end of December, which is a bit of a coin flip.

我們看到了一些與預期相反的結果。我的意思是，我們知道貨物運輸會延誤，但還有人擔心這些卡車會在 12 月底左右出現，這有點像拋硬幣一樣，很難說。

Yeah. And Niko, I'll add a little more color to that. So Carla, this is J.D. On the Garden side of the business, at the end of Q1, we received a lot of the orders for retailers that are setting their stores for the upcoming season, the Lawn & Garden season. And a lot of that typically ships between Christmas and New Year's.

是的。尼科，我再補充一些細節。卡拉，我是 J.D.。在園藝業務方面，第一季末，我們收到了許多零售商的訂單，他們正在為即將到來的草坪和花園季節佈置商店。許多這類商品通常會在聖誕節和新年之間出貨。

Oftentimes, they don't want to bring in inventory before Christmas. And this year, our fiscal quarter ends on the 27. So we have one shipping day between Christmas and New Year's.

他們通常不想在聖誕節前進貨。今年，我們的財政季度於27日結束。所以我們在聖誕節和新年之間只有一天的出貨時間。

We haven't even received all of those orders yet from retailers and really, as Niko said, trying to pinpoint exactly what's going to ship in Q1 and what's going to shift into Q2. Intuitively, it tells us that some shift to Q2 will happen, but it's really hard to quantify it. this early. Does that make sense?

我們甚至還沒有收到零售商的所有訂單，而且正如尼科所說，我們正在努力確定哪些產品將在第一季發貨，哪些產品將轉移到第二季度發貨。直覺上，這表明第二季度將會出現一些變化，但現在很難量化這種變化。這樣說得通嗎？

Okay, great. Yes, that does. And that's super helpful. The other thing is you talked about that you're seeing the income dispersion that we're also hearing a lot of retailers talk about.

好的，太好了。是的，確實如此。這真的很有幫助。另外，您也提到收入分配不均的問題，我們也常聽到零售商談到這個問題。

Are you seeing also -- can you talk about whether you're seeing strength or weakness in any of your different channels, home centers, specialty pet, mass, et cetera?

您能否也談談您在不同的通路（例如家居中心、寵物專賣店、大眾市場等）中觀察到的優點或缺點？

I mean the biggest trend we're still seeing is sort of the migration to online overall across both segments. Pet being more developed online than Garden. But if you look at the Garden growth rate, it's been just tremendous. We have 60% growth on the Garden side with some of the online retailers and it's quickly catching up.

我的意思是，我們目前看到的最大趨勢是，兩個領域都在向線上遷移。寵物相關的網路發展比園藝相關發展更完善。但如果你看看花園的生長速度，你會發現它簡直太驚人了。我們在園藝產品方面與一些線上零售商的合作實現了 60% 的成長，而且成長速度正在迅速趕上。

And I think you're just seeing some volume lead brick-and-mortar and go in online. I think some of the retailers that have robust omnichannel strategies are the ones winning right now. So we're seeing some of that. As far as the income and that diversion of income, the bifurcation of income rather. I'm not sure we're seeing it in any specific channel.

我認為你看到的只是實體店的一些銷售成長，然後轉戰線上市場。我認為目前那些擁有健全的全通路策略的零售商正在取得成功。所以我們已經看到一些這樣的情況。至於收入以及收入的分配，更確切地說是收入的分裂。我不確定我們是否在某個特定頻道看到它。

I'll let John and J.D. weigh in on it. But as far as we're sitting, we're not seeing a ton of it.

我會讓約翰和J.D.來發表意見。但就我們目前所見，這種情況並不多見。

Yeah. On the Pet side, I would add, I don't think we're seeing a ton of it. The pet specialty channel, as we've communicated in the past, remains challenged. Foot traffic has been a bit of a challenge. I do believe as we see the live animals stabilize, that's going to be good for that channel. But bifurcation of income, we're not I can't call anything specific out.

是的。至於寵物方面，我想補充一點，我認為我們並沒有看到很多這樣的情況。正如我們之前所溝通的那樣，寵物專賣管道仍然面臨挑戰。人流一直是個難題。我相信，隨著活體動物數量的穩定，這對該頻道來說是件好事。但是關於所得分配的分化，我們不能具體指出任何面向。

Okay, great. Thanks.

好的，太好了。謝謝。

And that was our last question. And with that, we're going to close the call. Happy Thanksgiving, and we'll take your questions if you have any during the quarter.

這是我們的最後一個問題。通話到此結束。感恩節快樂！如果您在本季度有任何問題，我們都會解答。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。您可以在此時斷開線路。感謝您的參與。