CLOROX CO /DE/ (CLX) Company Report

U.S. category growth has slowed to 0–1% from historical 2–2.5%, as consumers trade down, stretch usage, and shift to larger formats and value channels.
The company forecasts fiscal H2 2026 organic sales growth of low single digits in U.S. retail—implying modest share gains—with international and professional segments expected to outpace.
Management will execute an integrated demand playbook—focused on innovation, brand building, price-pack architecture, and holistic margin management—to drive 25–50 bps of annual margin expansion, supported by recent ERP and digital investments.
Investments in data infrastructure and marketing personalization, combined with AI-driven analysis of consumer insights, have bolstered the early-stage innovation pipeline ahead of H2 launches.
Capital allocation priorities remain: invest in the core (organic and inorganic), sustain dividends (~$600 million), maintain net debt/EBITDA at 2–2.5×, then deploy excess cash—returned ~$300 million via share repurchases in FY 2025.

3 days ago

Transcript

Clorox outlines fiscal 2026 outlook at Morgan Stanley conference

CLX

Guidance Update

Demand Weakening

U.S. retail categories are under stress, growing historically 2–2.5% but contracting to 0–1% in downturns as consumers stretch usage, favor lower price points and larger pack sizes, and shift channels.
Fiscal 2026 guidance calls for a low-single-digit organic sales decline in Q2, returning to low-single-digit growth in the back half, implying modest share gains versus a flat-to-1% category outlook.
Clorox targets 25–50 bp annual adjusted operating margin expansion, driven by holistic margin management, record cost savings and productivity programs.
ERP stabilization completes in 2026, with material margin and productivity benefits expected in 2027–2028 as supply-chain and process optimizations are realized.
An enhanced innovation pipeline—accelerated by AI-driven consumer insights—is bolstering new product discovery and time-to-market.

3 days ago

Transcript

Clorox reports Q1 FY2026 earnings call

CLX

Earnings

Guidance Update

Product Launch

ERP implementation in the U.S. completed in Q1, causing out-of-stocks and a 7.5 pp headwind to organic sales; customer fill rates have largely normalized entering Q2.
Q1 organic sales declined 3 pp excluding ERP and timing shifts; underlying sales performance was -1 pp, driven by transient ERP disruptions and inventory gaps.
Full-year organic sales pacing: negative low-single-digit growth in the first half (Q2 down low-single digits) and positive low-single-digit growth in the second half, assuming 0–1 % U.S. retail category growth and market-share gains from innovation.
Major product innovations planned for back half across core brands—Glad seasonal scents, Brita smaller formats and filters, and expanded Burt’s offerings—to drive consumption and share recovery.

Nov 3, 2025, 10:00 PM

Transcript

Clorox outlines Q1 2026 financials and outlook

CLX

Earnings

Guidance Update

Demand Weakening

Organic sales declined 3% in Q1 ex-ERP, with an underlying 1% drop after adjusting for a 1 ppt timing benefit and 3 ppt out-of-stock impact.
FY sales phasing projected at negative low-single digits in the front half (Q2 low single digits) and positive low-single digits in the back half, driven by innovation and lapping negative trends.
The ERP transition imposed a 7.5 ppt headwind to FY organic sales growth; retailer inventory positions normalized by Q1 end.
Input cost inflation outlook improved by $20 million to ~$70 million; tariffs remain a $40 million headwind; expect robust gross margin expansion in Q3 and Q4.
Back-half innovations include a new Glad scent, Brita smaller pack sizes, and expanded Burt’s Bees products, backed by increased trade and advertising investment.

Nov 3, 2025, 10:00 PM

Transcript

Clorox reports Q1 FY2026 results and updates full-year outlook

CLX

Earnings

Guidance Update

Demand Weakening

Q1 organic sales declined 3% excluding ERP impacts, with underlying performance at –1% after adjusting for a timing shift and out-of-stocks.
ERP implementation is now largely complete, creating a 7.5 pp headwind to FY26 sales; the new system will deliver real-time visibility, cost savings, and faster decision-making.
Full-year organic sales growth is guided to –5.9% to –2.9%, with the lower end viewed as most likely; reaching the high end requires >1% category growth, flawless innovation execution, and no supply issues.
Core category growth remains muted at 0–1%, reflecting a stressed consumer; U.S. retail and other essential segments have stabilized, with promotional activity staying rational.
Back-half organic sales are expected to turn positive low single digits, driven by a robust innovation pipeline—new Glad scents, modernized Brita pitchers, expanded Burt’s Bees portfolio—and optimized price-pack architecture.

Nov 3, 2025, 10:00 PM

Transcript

Clorox reports Q1 FY2026 results and updates outlook

CLX

Earnings

Guidance Update

Demand Weakening

Net sales decreased 19% to $1.43 billion, driven by shipment declines from its ERP transition.
Gross margin declined 410 bps to 41.7%, due to lower volumes and higher manufacturing and logistics costs.
Diluted EPS decreased 19% to $0.65, while adjusted EPS fell 54% to $0.85.
Maintained FY2026 outlook with GAAP net sales down 6%–10%, and adjusted EPS of $5.95–$6.30, excluding digital transformation investment headwinds.

Nov 3, 2025, 9:12 PM

8-K

Clorox reports Q1 FY2026 results and updates outlook

CLX

Earnings

Guidance Update

New Projects/Investments

Net sales decreased 19% to $1.43 billion, driven by ERP transition–related shipment declines; organic sales fell 17% year-over-year.
GAAP diluted EPS declined 19% to $0.65, while adjusted EPS dropped 54% to $0.85, primarily reflecting lower volumes from the ERP rollout.
ERP transition impact includes approximately 7.5 points of sales decline and a $0.90 per-share headwind to FY2026 EPS, as retailers drew down pre-transition inventory.
Company maintains FY2026 guidance with net sales down 6–10%, GAAP EPS of $5.60–$5.95, and adjusted EPS of $5.95–$6.30.

Nov 3, 2025, 9:10 PM

Press Release

Clorox details FY2025 performance and digital transformation

CLX

Guidance Update

New Projects/Investments

Product Launch

Mixed FY25 results: Under-delivered on top-line but delivered strong margin and earnings via margin transformation; Q4 echoed strong profitability but weak sales.
ERP implementation: U.S. greenfield ERP went live in Q1 FY26, causing order fulfillment and inventory issues in August, now recovering with shipments rebounding toward low end of Q1 guidance.
Category growth volatility: U.S. consumer categories average 2–2.5% growth but have been volatile, trending flattish to slight growth as stressed consumers trade to larger/value SKUs.
Digital transformation: Invested >$550 million in a new digital foundation and reimagined work, now stabilizing and poised to extract productivity gains, including supply chain and SG&A benefits.
Innovation pipeline: Accelerating platform-based launches using AI-driven insights, halving concept-to-launch times, with new major platforms slated for back half of FY26.

Sep 3, 2025, 12:50 PM

Clorox reports mixed Q4 FY2025 results and outlines ERP-driven sales cycling

CLX

Earnings

Guidance Update

Demand Weakening

Clorox’s Q4 FY2025 performance was mixed, with weaker-than-expected top-line growth after lapping elevated demand and ERP-related inventory build, offset by strong gross margins and earnings.
The company commenced a greenfield US ERP go-live in July, prompting retailers to prebuy ~2 weeks of inventory (≈3.5–4% of annual sales), boosting FY2025 results by that amount but creating a one-time FY2026 sales headwind of 3.5–4%, with Q1 down ~14–15% year-over-year.
FY2026 guidance factors in 7.8% organic sales, 100 bps gross margin expansion and 22–25% adj. EPS growth including ERP cycling; on an ex-ERP basis, it assumes -1% to +2% organic sales, flat to +50 bps margin and 2–4% EPS growth.
Consumer categories remain under pressure, but sequential improvement and market-share gains are anticipated in H2 FY2026, driven by new innovation platforms, enhanced digital capabilities and margin-transformation initiatives.

Aug 1, 2025, 4:35 AM

Clorox Focuses on Margin Recovery Through Digital Transformation

CLX

Guidance Update

New Projects/Investments

Short-term consumer headwinds persist as Clorox experiences a top‐line slowdown and sees temporary noise from retailer inventory adjustments driven by their ongoing ERP transition, with reported sales impacted by about 2-3% in fiscal adjustments [index:0][index:4].
The company is executing a comprehensive digital transformation that goes beyond an ERP upgrade, focusing on data infrastructure, margin management, and cost savings to recover nearly 900 basis points of lost gross margin and drive future growth [index:2][index:7].
Brand performance remains mixed: while Kingsford in the grilling category shows steady share gains, Hidden Valley faced a temporary 5% decline due to shifting consumer choices, but its long-term outlook is bolstered by innovation and new partnerships [index:5][index:8].

Jun 4, 2025, 12:01 PM

Earnings Transcripts

Quarterly earnings call transcripts for CLOROX CO /DE/.

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