Pet food company IAmS Pet Food Inc. reported a loss of $6.5 million in the third quarter, as its sales were down 10% compared with the same period last year, the company said Friday.

The company said the company expects its gross margin to be lower than the industry average for the quarter.

IAm also said it expects its net income to be below its analysts’ estimates of $0.08 per share.

Iams shares were down 1.8% at $24.10 on the Nasdaq.

Pet food company shares have gained more than 20% in 2017, making them the largest U.S. stocks by market cap, according to FactSet.