you fiscal good our afternoon, earnings And and joining for call. everyone. QX Thanks, XXXX Friederike. Thank year
key Let me begin the with call messages. three
XXXX First, challenging these manifested earlier we the sales, And more margin, of characterized during evolving and unfavorable prominently and in grew season, half across income fiscal in results high headwinds, year. key we solid guidance net consumer Central despite all And by delivered freight commodities, retailer in inflation our poor the year. garden peak operating we behavior of labor, per second fiscal environment, dynamics, the inventory which provided and earnings the weather a gross share. exceeded
Second, while and the trends in industry roadmap capture a support and near term our macro pet unfavorable, to following confident garden prudent we we economic ahead. the growth in third, And outlook profitable guidance. likely as years competitive strength to that as of remains to Central the volatile we're Central-to-home look strategy growth, XXXX, the the and remain approach fiscal
ongoing inventory Our of cost spending $X.XX approach, that retailer continued reflects evolving inflation, unfavorable patterns. to consumer economic considering dynamics, guidance uncertainty, and $X.XX
fiscal investments and company taking to a reflects focus our the to sharper on we cost our thoughtful we in Our agenda strong our make resilience what of In the including our are control, environment, continue this cash outlook control also can belief foundation. as steps and fortify of fundamentals industries. we to in additional XXXX our
Thank me a results you, year more across hard we our in work Central. colleagues it's Central-to-home important for color our on to continued recognize team to our steady provide to I before and delivered make difficult great their company. Thanks X,XXX on our and dedication, meaningful Now results, progress strategy.
annual year increased growth a X% a above three-year CAGR. stack results. levels pre-pandemic our and to financial with compound Net on are now sales versus XX% Turning prior rate XX% or
the is over recent both growth a acquisitions. line growth combination our the years three organic contributions Our of strong from and past top
Our managing face agenda, also more of pre-pandemic than our unprecedented off. above teams executed those paid achieved smart margin across challenges, mix margin a delivered inflation, the points XX and we quarter a and encountered year, This basis commodities, favorable versus gross driving has pricing and In levels. gross meaningful year freight focus expansion product by labor. on productivity, billion dollars prior
in due operating net given cost higher continued logistics a prior margin income million Our basis is increase year versus building by $X.XX and now or than in came finally, earnings strategy. $X.XX June year year, to in of better. income offset guidance since EPS into capabilities three versus per XXXX, increased a now outbreak, XX% key expansion, a and in our prior gross grew Operating investment year $XXX SG&A sales and growth to points X% grew And $X.XX aligned has COVID CAGR. with our XX the three CAGR. XX% both higher translating share above
headwinds the about last the three good tailwinds years, performance. and feel we As our we back of over look
and on share Let me relates trends now our growth to color across segments, in and as particular customers. consumers sales two our it some
In poor as most consumer uncertainty, channels. economic declines the spending, Let's traffic impacted Garden. during as with garden retail weather XXXX, to in leading well start season, peak foot garden
in inventory slowdown In fiscal an half second to partners aisles, selling across addition, unexpected year. the our all concerns many excess of inventory retail the in of signaled leading
growth, growth. gardeners to number estimate that for we more unsurprisingly, of still category, strong relates And erode. engaged years category, are households in with the have two the of following bodes entering the seen that two-thirds it well million yet, As future the XX we new than consumer, which new
to All organic net year. sales of Driven garden X% sales. total acquisitions, a increased X% by garden net recent factors prior versus decline in contributed these
or throughout our fiscal engaged categories consumption remain conditions. has XXXX. our sales the unfavorable POS net indicates consumers the despite outperformed that This Importantly, garden in
performance. in the perspective, service we're our levels with wild Smart to categories, innovation These entire We repair to team, significantly and fiscal expansion in behavior, of during a our grass but over supported grew of disruption. addition smart investments capacity years, our strong challenges share competitive only not are evolving automation chain also promotional discussed successful in fill in by improved also in garden patch. growth grass our our share in gains Pennington pleased two high consistently seed. In two and activity, have rates XXXX. share substantial the the and launch calls, key bird consumer supply Garden patch seed and now the customer including were in the past and driven patch we've market the XXs. and last drove given gains From segment, category share Thanks focus
a consumer private and label to continues a branded our potential to of shift keeping close While outperform the private and on value key sales offerings, we're across eye categories. number consumption business label
now return improved grew X%, garden We digits both on accounts of grew for spend mid-single business play across sales. on Our our digits share ad channel on market portfolio etailer total play garden ecommerce by pure and customers. a and omni large pure double and
strengthen to this capabilities ecommerce channel investment these growth efforts high and in strong are in critical results. manifesting Our talent,
Turning now the to segment, some Pet. Much seen like the deceleration. has Pet Garden segment
segment purposeful rationalization private the product impacted sales profit X%, of the exit our unfavorably declined For label low by and lines. SKU year, Pet
have grown would impact, prior versus that Pet Excluding year. sales
Think trends have pet durables divergence we're an of habitat the price Looking about durables consumables. In closely Kaytee Aqueon a experienced most at durables consumables. consumption fish points Durables the or decline. and pig mix slowdown product seeing a between in new And than line tank. more aligned in are Pet, with have guinea higher pets. adoptions, with a
with private branded remains and to consumer continue to especially household healthy market we're retail. at patterns, continue shopping underscores inflationary animal, Online importance We and to consumables I of to performance penetration dog growing given our Nevertheless, pet to business what pet equine private value Similar in Competitively, to the supplies Pet. love, Garden, outperforming continues grow and gained rate, and uncertainty. faster times well mortar our in is brick segments potential label. and a of in here held stay the building in consumers environment, persistent much the market pet than that is and or monitor share we pre-pandemic grow and levels. migration share small treats. However, above brands label. This spending pleased including shared
equine grew XX% where fill rates Pet, ROIs. and in a in is ecommerce to and double-digit digital recent ecommerce a beds. our animal, growth market increase we aquatics, total ecommerce our of pet improved Our marketing share business share thanks play market represents pet Pet now etailer at and bird, strength pure A in XX% small testament to leading grew
and performance ecommerce is to digital into of pet our outlook. term talent capabilities. Shifting strong a investments our strategic longer Our now result
industries our the and in the fundamental trends businesses mentioned, years support to for come. we and confident I pet growth benefit will garden As remain in that
pet have work lawn of part and model, room is fundamentally change tailwind that a or larger A revitalization. full rural garden gardens pets. include more The more cities as space for believe and population trends suburban the in lives a or both of these Hybrid outside we staying either people and environments. This time disrupted areas. now of and office-centric Some portion their for more the pandemic has time for larger power. rural
see more Gen Consumers, consumers support more how part We all XXXX, mortar brick a with channel evidence are that consumers, opportunities they're and total growing Revolution. and half greater we're are knowledge, engage provides new above Digital stay, making the consideration in innovation X people parenting affinity, spending for members those our younger with after was source the our nation's fertile at garden they're Z, of are And result, of time. ways garden younger activities. pets. product development online increasingly particular and than rate embody born they to Millennials our of or ecommerce, years. well brands of parents. build a about in dollars millennial few ground here brand has part, pipeline. passionate sustainability And that from Boomer for across their younger. them shop are more home, sustainability. to least rate activities these shopping. materially pet This categories. values. a strong Sustainability. voting at and in working love And for that last adopting and lawn and to the core As omni shopping changed Gen generation at and The their allows above a those making or of the population consumers And on the their especially
fact, of This our half person. shops digital In prefer shopping US more consumers such of of and over US excellence and strategy. elements the Central-to-home population are online than is important ecommerce why in XX% online marketing
furry, supporting premiumization to prepared feathery are and products and spend points On the their industry, that family. pet both especially are the side, of for on tailwinds as members broader more humanization significant the supplies, consumers the scaly opportunities category wellbeing price higher and pet support innovation of pet
is capabilities Central-to-home these on industry competitive Our leveraging and favorable advantages over trends the term. strategy focused building our fortify to long
a Let strategy me update now action. our on in you brief give progress
on our consumer First, pillar.
has materially XX This excellence. building includes agenda addition of in and includes distinctive growth consumer Our the marketing creating innovation, consumer and advanced which months. to last driving progress brands, on disruptive digital the great capabilities, new talent XX
we our and brands. With growth example, from For early as growth saw campaign mentioned, of our smart campaign, impression gains in Start product, supported This driving and marketing accelerated results cost launch several while seed rates. doubled new share significantly driving per the the which, promising Pennington our share lower impressions, Smart we drove a across market strong patch grass the higher campaign engagement previously category. I Pennington
engagement our to XX strong our need market versus innovation double On a side, the helped improved products market Recognizing historic faster. campaign. during and for reframed share to animal. the digital better getting we've the rates Pet to growth creating all This small campaign to understand levels consumers, times Kaytee pipeline small and contributed approach in ROIs
in pet GoodGood, new example, months. than XX less an our launched As we supplements brand,
Nylabone Product Awards. in as Innovation toys were in chew XXXX and Choice chew Year Independent gourmet Awards, XXXX finalist News Product Our of Pet one the Pet Editor's a selected the toy
their advanced proud to and our empowering from and strategy volunteering and our pet priorities, and inclusion ranging areas cultivating and employees our diversity in bird planet, great across you NutriSoft product This development. positive the framed pillar. food We're business impact review provides year. our and our of our passionate and to Impact encourage XX biodiversity report goals learning protecting won inaugural Central Report. addition, to outlined showcases philanthropy to and have our key Shifting key also waste, I three to employee examples work range of water communities sustainability. units. this which launched of our report, a team's and our In around to some our food bird We is Kaytee initiatives sustainability
solar cat converted of our which examples these our plastics business, hundreds in outdoor of commissioned Nylabone panels, Oceantex pounds branded of millions is gases. One bound cushions ocean dog of pounds rooftop mitigating business, And of our greenhouse of thousands and we into fabrics.
Another Nursery team was one recent action efforts Home recognition by Year Depot accolade. as of honor store the across Environmental year, our for was the this our awarded entire the at team Partner to great month. is only earlier Summit sustainability in prestigious of And in the it this our example Bell Each of Supplier the Atlanta, Depot. the Goods a join celebrate Live Annual Home and me vendor award
strategy continue impact to journey, in our years were meaningful While driven to by ahead. more, against will and do the advancements we in acknowledge our our we make desire we're early sustainability
pillar. our Turning to cost
of continued the automation and the simplified drive to cat outlook, margins difficult our our thousands to of and agenda improved garden reduction build treats many efficiency from by our our Since economic cost portfolio some manufacturers our and coal on we've of and focused the including production SKUs, aquatics, and wild invested and inflationary businesses, we're shifted growth. own to environment eliminating and more seed Given fuel toys, controls feed. dog pandemic, even beginning bird of plans, grass in in bird
travel hiring efforts Looking environment. the positions down pause on salaried fiscal given forward XXXX, manage and doubling economic and filling includes reducing to costs, expenses. a we're deliberate open our in This uncertain to
beyond rationalize our are developing we currently leverage simplify to robust fuel in a our leaner create plans and make up overall chain more and agenda fruit firm and better for as expected more cost yield improve efforts simplification stronger supply network, to term to our out supply growth. and coming These years. months XXXX in and share fiscal our the exiting addition, the us footprint COVID In we longer margins We'll scale. chain are
industry I summarize, support confident we to and that Central-to-home that trends want the strength strategy. remain competitive growth, to pet the and reiterate So, fundamental Central in of our garden
term. turn the XXXX our can the be fiscal team over confident I'm challenging, to long And building term Niko. for me that, will while short While it with navigate let
