- Clorox reported an adjusted earnings per share (EPS) of $0.85 for the first quarter, surpassing estimates of $0.79, though down from $1.86 year-over-year.
- The company achieved net sales of $1.43 billion, a 19% decrease from the previous year but slightly above the forecast of $1.4 billion.
- Household segment net sales reached $362 million, a decline of 19% year-over-year, yet exceeded expectations set at $348.3 million.
- Lifestyle segment net sales amounted to $245 million, showing a 23% decrease year-over-year, underperforming against the estimated $258.9 million.
- Net sales for the Health and Wellness segment were recorded at $565 million, down 19% from the previous year, surpassing the estimated $544.3 million.
- The International segment saw a slight decline of 2.3% in net sales, totaling $253 million, which was above the expected $249.1 million.
- Organic sales decreased by 17%, but performed better than the projected 18.2% decline.
- Gross margin fell to 41.7% from 45.8% year-over-year, slightly exceeding the anticipated 41.3%.
- Reported EPS was $0.65, compared to $0.80 year-over-year.
- The company forecasts a decrease in net sales between 6% to 10% for the fiscal year 2026.
- Organic sales are expected to decline between 5% to 9%, aligning with an estimate of an 8.09% drop.
- Clorox maintains its full-year adjusted EPS outlook between $5.95 to $6.30, slightly above analyst estimates of $5.94.
- The 2026 EPS is forecasted to range from $5.60 to $5.95.
- The company is sticking to its full-year targets despite earlier order fulfillment challenges impacting consumption and market share.
- Forecasting reflects improved input costs and a robust demand creation strategy aimed at enhancing market share and sales growth in the latter half of the fiscal year.
Clorox Company on Smartkarma
Analysts at Baptista Research have been covering the Clorox Company diligently on Smartkarma, providing valuable insights for investors. In one of their reports titled “The Clorox Company: Dealing With Gross Margin Volatility & 3 Critical Challenges In Its Path!”, they discussed the company’s recent fourth-quarter and full-year fiscal 2025 results. While highlighting robust gross margin and earnings performance as indicators of efficient cost management, they also pointed out challenges such as weaker-than-expected top-line growth due to macroeconomic uncertainties and shifts in consumer behavior.
In another report by Baptista Research titled “The Clorox Company: Strategic Expansion in Key Channels To Support Revenue Stability & Future Growth!”, the analysts emphasized Clorox’s resilience in the face of a challenging consumer environment during the third quarter of fiscal year 2025. Despite increased competition and macroeconomic uncertainties, Clorox showcased strong operational fundamentals, maintaining market share and achieving gross margin expansion for the tenth consecutive quarter, setting a positive trajectory for future growth.
A look at Clorox Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, the long-term outlook for Clorox Company appears positive. With a strong Dividend score of 4 and Growth score of 4, the company is showing potential for both steady returns and future expansion. Additionally, the Resilience score of 3 indicates that Clorox is well-positioned to weather economic uncertainties. Although the Value score is at 2, suggesting some room for improvement in terms of stock valuation, the overall outlook remains favorable. The Momentum score of 3 suggests a moderate level of market momentum for the company.
The Clorox Company, known for producing household cleaning products, cat litter, and other consumer goods, continues to demonstrate stability and growth potential in the market. With a diversified product portfolio marketed both domestically and internationally, Clorox has established a strong presence in the retail sector. Investors may find Clorox Company attractive for its solid dividend performance, growth prospects, and ability to withstand market fluctuations, as indicated by the Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
