Financial Outlook - Clorox maintained its full-year revenue and earnings outlook [1] - Clorox aims to accelerate profit growth in the second half of the year [1] Operational Update - Disruptions from changes in Clorox's operational software were mostly behind it [1]

Financial Performance - Net sales decreased 19% to $1.43 billion, primarily due to lower shipments related to the ERP transition[5] - Organic sales decreased 17%, driven mainly by lower volume related to its ERP transition[5] - Gross margin decreased 410 basis points to 41.7% from 45.8% in the year-ago quarter[5] - Diluted EPS decreased 19% to $0.65 from $0.80 in the year-ago quarter[5] - Year-to-date net cash provided by operations was $93 million, representing a 58% decrease compared to $221 million in the year-ago period[5] - Adjusted diluted earnings per share (EPS) for the three months ended September 30, 2025, was $0.85, a 54% decrease from the adjusted EPS of $1.86 in the same period last year[33] - Net earnings attributable to Clorox for Q3 2025 were $80 million, compared to $99 million in Q3 2024, representing a 19% decrease[37] - Basic net earnings per share decreased to $0.65 from $0.80, a decline of 18.75% year-over-year[37] Future Outlook - The company expects net sales to be down 6% to 10% for fiscal year 2026, including a negative impact of about 7.5 points related to the ERP transition[16] - Adjusted EPS is expected to be between $5.95 and $6.30, reflecting a decrease between 23% and 18%[16] - The company anticipates diluted EPS for fiscal year 2026 to range from $5.60 to $5.95, with adjusted EPS expected to range from $5.95 to $6.30[34] ERP Transition and Digital Transformation - The company successfully completed the first two phases of its U.S. ERP implementation and is on track to finish the final phase this winter[8] - The company is transitioning to a cloud-based ERP system as part of its digital transformation strategy, which is expected to enhance operational efficiencies[28] - The company expects to incur approximately $60 million ($46 million after tax) in operating expenses related to digital capabilities and productivity enhancements investment in fiscal year 2026[34] - The total incremental transformational investment for digital capabilities is expected to be approximately $580 million over five years, with 75% of this amount representing incremental operating costs[28][29] Sales Performance by Segment - The company faced a 19% decrease in net sales in the Health and Wellness segment and a 23% decrease in the Lifestyle segment for the three months ended September 30, 2025[32] - Net sales for the three months ended September 30, 2025, were $1,429 million, a decrease of 19% compared to $1,762 million for the same period in 2024[37] - The Health and Wellness segment reported net sales of $565 million, down 19% from $698 million year-over-year[38] - The Household segment also saw a 19% decline in net sales, from $447 million to $362 million[38] Innovation and Recognition - New products introduced include Clorox Screen+ Sanitizing Wipes and Glad ForceFlex Apple Cinnamon scented trash bags[8] - The company received Kantar's Outstanding Innovation Award and was recognized among America's Greatest Companies by Newsweek[8] Financial Position - Total current assets increased to $1,695 million from $1,576 million year-over-year, primarily driven by higher receivables[39] - Total liabilities rose to $5,390 million from $5,273 million, indicating an increase in financial obligations[39] Risks and Challenges - The company has identified risks related to supply chain disruptions and geopolitical tensions that could affect future performance[25] - The impact of divestitures on organic sales growth was calculated as a 2% increase for the total company[32]

Core Insights - The Clorox Company reported a 19% decline in net sales for the first quarter of fiscal year 2026, primarily due to lower shipments related to the ERP transition and the divestiture of the Better Health VMS business [9][11][15] - The company is focused on accelerating profitable growth through innovation and demand-creation initiatives following the ERP rollout, which has caused temporary disruptions [4][13] Financial Performance - Net sales decreased to $1.43 billion, with organic sales down 17%, largely attributed to lower shipment volumes as retailers depleted inventory built up prior to the ERP transition [9][12] - Gross margin fell by 410 basis points to 41.7%, driven by lower volume and increased manufacturing and logistics costs [9][15] - Diluted EPS decreased by 19% to $0.65, while adjusted EPS saw a more significant drop of 54% to $0.85, reflecting the impact of the ERP transition [9][27] ERP Transition Impact - The ERP transition led to a significant inventory build-up in the previous quarter, resulting in a 7.5-point decline in year-over-year sales growth as retailers reduced their stock [8][11] - The company expects the inventory drawdown to negatively impact fiscal year 2026 earnings per share by approximately $0.90 [11][15] Strategic Initiatives - Clorox is investing in digital capabilities and productivity enhancements, with a total investment of approximately $580 million expected to yield long-term efficiencies [23][24] - The company has introduced new products aligned with emerging consumer trends, aiming to deliver superior value [10][4] Outlook - The company maintains its full-year outlook for net sales, gross margin, and adjusted EPS, anticipating a decline of 6% to 10% in net sales for fiscal year 2026 [13][15] - Adjusted EPS is projected to be between $5.95 and $6.30, reflecting a decrease of 23% to 18% year-over-year [15][32]

Core Viewpoint - The Clorox Company (NYSE:CLX) has seen a significant decline of over 30% in its stock price this year, reflecting changing consumer behavior amid economic concerns and inflation [1][2]. Company Overview - Clorox manufactures a variety of consumer and professional products, including cleaning supplies, cat litter, food, personal care, and water-filtration products. Notable brands include Clorox, Glad, Brita, Burt's Bees, Kingsford, and Hidden Valley [2]. Market Context - Historically, consumer packaged goods stocks like Clorox were considered recession-proof, performing well during economic downturns. However, with the current market rebound, Clorox's performance has faltered, contrasting with companies like Coca-Cola and Mondelez [2]. Investment Perspective - While Clorox is recognized for its potential as an investment, there are suggestions that certain AI stocks may offer greater upside potential and lower downside risk, indicating a shift in investment focus [2].

Core Insights - Clorox is facing a significant decline in earnings, with EPS expected to drop to 78 cents from $1.86 year-over-year, and revenue projected to decrease to $1.4 billion from $1.76 billion [2] - Despite these challenges, Clorox offers an attractive dividend yield of 4.41%, with a quarterly dividend of $1.24 per share, appealing to income-focused investors [3] - The company's financial metrics indicate a P/E ratio of 17.10, a price-to-sales ratio of 1.94, and a high debt-to-equity ratio of 8.97, suggesting reliance on debt financing [4] - Clorox's strong brand equity and ongoing digital transformation efforts are expected to support recovery in the latter half of the year [5] Financial Performance - Anticipated EPS for the upcoming earnings report is $0.818, with revenue expected to be approximately $1.4 billion [1] - The forecasted EPS decline to 78 cents reflects operational challenges, including an ERP transition and inventory reductions [2] Investment Appeal - An investment of around $136,077 in Clorox could yield $500 monthly in dividends, totaling $6,000 annually, making it attractive for steady income seekers [3] - The upcoming earnings report is crucial for determining the stock's future trajectory, with potential price movements based on actual results versus market expectations [5]

The Clorox Company (NYSE:CLX) will release earnings results for the first quarter after the closing bell on Monday, Nov. 3.Analysts expect the company to report quarterly earnings at 78 cents per share, down from $1.86 per share in the year-ago period. The consensus estimate for Clorox's quarterly revenue is $1.4 billion, compared to $1.76 billion a year earlier, according to data from Benzinga Pro.On Oct. 10, JP Morgan analyst Andrea Teixeira maintained a Neutral rating on Clorox and lowered the price targ ...

The Clorox Company (NYSE:CLX) will release earnings results for the first quarter after the closing bell on Monday, Nov. 3.Analysts expect the company to report quarterly earnings at 78 cents per share, down from $1.86 per share in the year-ago period. The consensus estimate for Clorox's quarterly revenue is $1.4 billion, compared to $1.76 billion a year earlier, according to data from Benzinga Pro.On Oct. 10, JP Morgan analyst Andrea Teixeira maintained a Neutral rating on Clorox and lowered the price targ ...

Core Viewpoint - Clorox Company (CLX) is expected to report significant year-over-year declines in both revenue and earnings for the first quarter of fiscal 2026, primarily due to ERP-related disruptions and macroeconomic challenges [1][3][5]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fiscal first-quarter revenues is $1.39 billion, reflecting a 21.2% decline from the previous year [2][9]. - The consensus estimate for earnings per share (EPS) has decreased to 78 cents, indicating a 58.1% drop compared to the same quarter last year [2][9]. Operational Challenges - Clorox is facing a challenging start to fiscal 2026, with significant headwinds from ERP-related disruptions and a reduction in retailer inventory built up in late fiscal 2025 [3][4]. - The company anticipates that these ERP transition effects will account for a 14-15 point decline in sales and 200 basis points of margin pressure in the first quarter [4][6]. Margin and Profitability Outlook - Gross margin is projected to be between 41% and 42%, which is below historical levels, primarily due to 200 basis points of pressure from the ERP transition and an additional 100 basis points from storm-related damages [7][9]. - Adjusted operating profit is expected to decline by 50.1% year over year to $165.5 million, with an adjusted operating margin contracting to 11.8% [9]. Market Environment - Clorox operates in a challenging macroeconomic environment, facing increased advertising expenses and stiff competition in the consumer goods sector, which pressures market share and operational performance [8][9]. - The company is also dealing with early impacts of tariffs and elevated selling, general, and administrative (SG&A) costs [8]. Future Outlook - Management remains optimistic about a recovery in the second half of the year as consumption stabilizes and ERP-related effects diminish [5][9]. - Clorox is nearing completion of a multi-year digital transformation, which is expected to enhance supply-chain responsiveness and operational efficiency [12][13].

Core Insights - Consumer-facing businesses with strong brand power are positioned to grow dividends and enhance investor portfolios in the long term [1][2] Group 1: Company Summaries - **Pool Corp.**: The largest wholesale distributor of swimming pools and related supplies, Pool Corp. has established recurring revenue streams through installation and maintenance services. The company has increased its dividend for 14 consecutive years, despite economic downturns, making it a potential buying opportunity as consumer sentiment rebounds [4][6]. - **PepsiCo**: A dominant player in the food and beverage sector, PepsiCo has a diverse portfolio that includes well-known snack brands. The company has increased its dividend for 52 consecutive years, benefiting from strong pricing power and consistent demand for its products [7][8]. - **Clorox**: Known for its cleaning products and household goods, Clorox has maintained a strong return on invested capital averaging 19% over the past decade. The company has a dividend yield of over 4% and is approaching five decades of uninterrupted dividend increases, despite recent challenges [9][10]. - **Home Depot**: As a leading home improvement retailer, Home Depot benefits from a cultural inclination towards home spending. The company has a 15-year dividend growth streak and is expected to continue this trend as housing turnover increases in the coming decade [11][12]. - **Philip Morris International**: Transitioning from traditional cigarettes to smoke-free products, Philip Morris generates over 40% of its sales from next-generation products. The company has consistently raised its dividend since 2008, indicating strong growth potential in the evolving nicotine market [13][14].

Core Insights - The article discusses consumer stocks with high-yielding dividends and a history of payout increases, highlighting the balance between dividend yield and associated risks [1][2]. Group 1: Realty Income - Realty Income is known as the "monthly dividend company," owning over 15,600 single-tenant, net-leased properties, allowing it to avoid income tax on operational income by distributing over 90% of net income as dividends [3][4]. - The company has consistently increased its monthly dividend since 1994, currently offering an annual dividend of over $3.23 per share, translating to a cash return of over 5.3% [4][8]. - Realty Income faced challenges during the pandemic and rising interest rates, leading to a stock price discount of approximately 24% from its early 2020 high [5][6]. - With declining interest rates, Realty Income is positioned to reduce costs and expand, trading at about 15 times its funds from operations (FFO) income of $4.11 per share [7][8]. Group 2: Clorox - Clorox, known for its cleaning products, experienced a surge in demand during the pandemic but has since faced a decline in stock price, trading at about a 50% discount from its all-time high [9][11]. - The company has been impacted by a cyberattack in 2023, disrupting its supply chain and leading to product shortages [10][11]. - Despite these challenges, Clorox maintains a history of dividend increases, currently offering an annual payout of $4.96 per share, resulting in a dividend yield of over 4.1% [13][14]. - Clorox's price-to-earnings ratio is 18, below the S&P 500 average of 31, making it attractive for dividend investors seeking potential stock-price appreciation [13][14][15].