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Concentration of Credit Risk and Significant Customers and Suppliers
12 Months Ended
Sep. 28, 2024
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk and Significant Customers and Suppliers Concentration of Credit Risk and Significant Customers and Suppliers
Customer Concentration – Approximately 54% of the Company’s net sales for fiscal 2024, 52% for fiscal 2023 and 51% for fiscal 2022 were derived from sales to the Company’s top five customers. The Company’s largest customer accounted for approximately 17% of the Company’s net sales in fiscal 2024, 16% in 2023 and 17% in 2022 (in both Pet and Garden). The Company’s second largest customer in 2024 accounted for approximately 16% of the Company’s net sales in fiscal years 2024, 2023 and 2022 (in both Pet and Garden). The Company’s third largest customer in 2024 accounted for approximately 8% of the Company’s net sales in fiscal years 2024, 2023 and 2022 (in Pet). The loss of, or significant adverse change in, the relationship between the Company and any of these three customers could have a material adverse effect on the Company’s business and financial results. The loss of or reduction in orders from any significant customer, losses arising from customer disputes regarding shipments, fees, merchandise condition or related matters, or the Company’s inability to collect accounts receivable from any major customer could also have a material adverse impact on the Company’s business and financial results. As of September 28, 2024 and September 30, 2023, accounts receivable from the Company’s top five customers comprised approximately 53% and 51%, respectively, of the Company’s total accounts receivable, including 14% and 11%, respectively, from the Company’s largest customer.
Supplier Concentration – While the Company purchases products from many different manufacturers and suppliers, approximately 7%, 5% and 7% of the Company’s cost of goods sold in fiscal years 2024, 2023 and 2022, respectively, were derived from products purchased from the Company’s five largest suppliers.