F1Q (Dec) losses were US$0.09 vs. US$0.11 in the company's seasonally slowest quarter. Sales of US$292.5 million, -6.8%, were modestly below consensus expectations for a decline of -3.3%. Management stated this decline was from purchase delays by retailers during the quarter in both lawn and garden and pet segments and that the next quarter is looking good because of this.
Management is cutting costs by lowering their investment in working capital by US$48 million due to improved inventory management and it shaved off US$8 million in SG&A and is improving gross margins, according to the article.
New shelter data casts doubt on whether the pet population and pet ownership are truly growing.
While the pandemic caused unprecedented suffering worldwide in 2020, the disruptions to dogs, cats and other pets adoption numbers may normalize in 2021.