Clorox EcoClean Disinfecting Wipes expands the Clorox EcoClean product portfolio of Design for the Environment (DfE) and Safer Choice-certified, ready-to-use cleaners and disinfectants, to provide cleaning professionals more eco-conscious alternatives that work as well as traditional cleaners. OAKLAND, Calif., Aug. 6, 2024 /PRNewswire/ -- CloroxPro, the trusted makers of Clorox professional products, is proud to announce the expansion of the Clorox EcoClean product platform with the launch of Clorox EcoClea ...

It is safe to say that 2024 has been a disappointing year for those who invested in consumer staple stocks. The widely feared and talked about recession has not arrived, and so far the Fed has not made any rate cuts this year despite high anticipation. Although the interest rate cut is most likely going to occur during the September meeting, there is still a good chance that the Fed will not take the cut aggressively, and the cut journey will occur gradually. This would mean that it will take a couple of ye ...

Key Takeaways Clorox shares moved higher Friday after the consumer and professional product supplier beat quarterly profit estimates and issued an upbeat forward-year outlook. A streamlined business model helped Clorox expand its gross margin, underpinning earnings growth. The company said it would sell its Better Health Vitamins business, and touted its progress on recovering from a 2023 cyberattack. Clorox (CLX) shares jumped Friday to become the top performer in the S&P 500 after the company known for it ...

Core Viewpoint - Clorox Company reported strong profits in its fiscal fourth quarter of 2024, but its stock price increase may not be justified given the decline in sales and lack of expected top-line growth [1][2][4]. Financial Performance - In the fourth quarter, Clorox experienced a 6% year-over-year decline in net sales, with organic sales down 3% after accounting for the divestment of its Argentine business [2]. - The company achieved a gross margin of 43% in fiscal 2024, up from approximately 39% in fiscal 2023, indicating significant improvement [3]. - Management projects a gross margin of about 44% for fiscal 2025, with expected earnings per share (EPS) ranging from $4.95 to $5.20, reflecting solid year-over-year growth [3]. Stock Valuation - Following the recent price increase, Clorox trades at 27 times its forward earnings estimates, which is higher than the average S&P 500 stock [4]. - Management does not anticipate top-line growth in the upcoming year, suggesting that the stock should be valued below average rather than at a premium [4]. Market Demand - Despite the financial results and outlook, Clorox's products maintain consistent demand, which may provide some stability regardless of economic conditions [5].

Core Insights - The Clorox Company reported strong earnings for Q4 fiscal 2024, with adjusted earnings of $1.82 per share, a 9% year-over-year increase, surpassing the Zacks Consensus Estimate of $1.54 [5] - Despite a 6% decline in net sales to $1,903 million, the company’s gross margin expanded by 380 basis points to 46.5%, driven by cost-saving initiatives and lower expenses [6][7] - Management's fiscal 2025 earnings guidance exceeded analysts' expectations, contributing to positive investor sentiment [1] Financial Performance - Adjusted earnings increased due to improved gross margins and reduced selling and administrative expenses, although these were partially offset by lower net sales and increased advertising investments [5] - Net sales fell short of expectations, attributed to an unfavorable price mix and lower volumes, alongside the impact of divesting the Argentina business [6] - The gross margin improvement was supported by lower manufacturing and logistics costs, although higher trade promotion expenditures had a negative impact [7] Segment Analysis - The Health and Wellness segment's sales remained stable at $652 million, with a 15% increase in segment-adjusted EBIT due to favorable manufacturing costs [8] - Cleaning sales grew due to restored distribution channels and product innovations, while the Professional Products segment saw a decline due to reduced shipments of Pine-Sol products [9] - The Household segment's sales decreased by 10% to $597 million, with a 31% drop in segment-adjusted EBIT, despite effective cost management [10] Strategic Initiatives - Clorox has successfully recovered from a cyberattack, restoring distribution capabilities and regaining market share through a revitalized supply chain [2] - The company implemented a streamlined operating model expected to generate annual cost savings of approximately $100 million [3] - Clorox announced the divestiture of its Better Health Vitamins, Minerals and Supplements business to focus on core areas, with the transaction expected to conclude in Q1 fiscal 2025 [4] Guidance and Future Outlook - For fiscal 2025, Clorox expects net sales to be flat to down 2%, with organic sales anticipated to increase by 3-5% [16] - The gross margin is projected to improve by around 100 basis points, although this will be partially offset by cost inflation and higher promotional expenses [17] - Management forecasts earnings in the range of $4.95-$5.20 per share, reflecting a significant year-over-year increase [19]

Financial Data and Key Metrics Changes - The company reported flat organic sales for the full year despite an 18% organic sales decline in the first quarter due to a cyber-attack [5][6] - The company achieved its seventh consecutive quarter of margin expansion and is on track to return to pre-pandemic gross margins in fiscal year 2025 [6][15] - Adjusted EPS growth was in double digits for the year [6] Business Line Data and Key Metrics Changes - The household segment underperformed expectations, while the health and wellness segment exceeded expectations, leading to a favorable business unit mix that contributed to margin improvement [12][13] - The grilling business, which is heavily weather-dependent, faced challenges due to poor weather conditions during key holidays, impacting sales [18][19] - Distribution recovery for brands like Glad occurred later than expected, but the company is optimistic about future growth in this category [20][21] Market Data and Key Metrics Changes - Category growth has shifted from mid-single digits to low-single digits, with consumers increasingly focused on value [9][27] - Private label products gained market share, but the company has not seen significant movement of consumers to private label brands [29][30] Company Strategy and Development Direction - The company aims to strengthen its competitive advantage and accelerate profitable growth while navigating challenges from the cyber-attack [5][6] - There is a strong focus on investing behind brands to maintain value superiority and drive volume-driven sales growth [6][10] - The company is committed to a long-term organic sales growth target of 3% to 5% [48][50] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers will remain under pressure, impacting competitive activity and category growth [6][10] - The company is confident in its plans and investments to win with consumers and deliver strong financial performance in fiscal year 2025 [6][10] - The promotional environment is expected to return to pre-COVID levels, with competition remaining rational [30][31] Other Important Information - The company targets free cash flow as a percentage of sales at 11% to 13%, with a goal of achieving about 12% free cash flow in fiscal year 2025 [63] - Share repurchase programs have resumed after being suspended for three years, with a target of returning $250 million to $300 million to shareholders [65] Q&A Session Summary Question: Visibility on top-line outlook - Management acknowledged the consumer environment is under pressure, impacting category growth, but expects to execute spending plans effectively [8][10] Question: Gross margin performance - The gross margin exceeded expectations due to favorable business unit mix and cost savings, with expectations for continued margin expansion in fiscal year 2025 [12][15] Question: Household segment performance - Management noted that weather impacted the grilling business, but distribution recovery is on track, and they expect growth in the household segment moving forward [18][20] Question: Category health and RGM capabilities - The company sees resilience in its essential categories, with plans to leverage revenue growth management (RGM) capabilities to drive top-line growth [27][32] Question: Advertising and marketing spend - Management plans to maintain advertising and promotion spend at 11% to 11.5% of sales, balancing the need for market share recovery with prudent spending [59][60] Question: Cash flow and shareholder returns - The company targets a free cash flow of about 12% in fiscal year 2025 and has resumed share repurchases, prioritizing investments in the business [63][65]

For the quarter ended June 2024, Clorox (CLX) reported revenue of $1.9 billion, down 5.8% over the same period last year. EPS came in at $1.82, compared to $1.67 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.97 billion, representing a surprise of -3.40%. The company delivered an EPS surprise of +18.18%, with the consensus EPS estimate being $1.54. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expect ...

Clorox (CLX) came out with quarterly earnings of $1.82 per share, beating the Zacks Consensus Estimate of $1.54 per share. This compares to earnings of $1.67 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 18.18%. A quarter ago, it was expected that this consumer products maker would post earnings of $1.33 per share when it actually produced earnings of $1.71, delivering a surprise of 28.57%. Over the last four quarters, the c ...

PRESS RELEASE Clorox Reports Q4 and FY24 Results, Provides FY25 Outlook Company Announces Sale of its Better Health Vitamins, Minerals and Supplements Business OAKLAND, California, Aug. 1, 2024 — The Clorox Company (NYSE: CLX) today reported results for the fourth quarter and fiscal year 2024, which ended June 30, 2024. Alongside these results, the company also announced it has entered into a definitive agreement to divest its Better Health Vitamins, Minerals and Supplements (VMS) business in its entirety t ...

Core Insights - The Clorox Company announced the divestiture of its Better Health Vitamins, Minerals and Supplements (VMS) business to Piping Rock Health Products, LLC, as part of its IGNITE strategy to evolve its portfolio for consistent, profitable growth [1][12][13]. Fourth-Quarter Fiscal Year 2024 Summary - Net sales decreased by 6% to $1.9 billion compared to the same quarter last year, primarily due to the Argentina divestiture, unfavorable price mix, and lower volume [3][11]. - Gross margin increased by 380 basis points to 46.5%, attributed to lower manufacturing and logistics costs, cost savings initiatives, and favorable commodity costs [3]. - Diluted EPS rose by 22% to $1.73, including insurance recoveries related to a cyberattack, while adjusted EPS increased by 9% to $1.82 [3][11]. Strategic and Operational Highlights - The company successfully restored distribution losses and regained market share lost due to a cyberattack, while continuing to invest in brand value through advertising and innovations [5]. - Clorox achieved its seventh consecutive quarter of gross margin expansion and completed the implementation of a streamlined operating model, expected to yield annual cost savings of approximately $100 million [5][33]. - The company received multiple recognitions for its workplace and environmental initiatives, including being named a Best Company to Work For by U.S. News & World Report [5]. Key Segment Results - Health and Wellness segment net sales were flat, with cleaning sales increasing due to restored distribution and new innovations [6]. - Household segment net sales decreased by 10%, driven by lower volume and unfavorable price mix, while adjusted EBIT decreased by 31% [7]. - Lifestyle segment net sales decreased by 2%, with food sales increasing due to strong consumption, but water filtration and natural personal care sales declined [8]. - International segment net sales decreased by 11%, primarily due to the Argentina divestiture, but organic sales increased by 5% when excluding Argentina [9]. Fiscal Year 2024 Summary - For the fiscal year, net sales decreased by 4%, with gross margin increasing by 360 basis points to 43.0% [11]. - Diluted EPS increased by 88% to $2.25, while adjusted EPS rose by 21% to $6.17, driven by pricing and gross margin expansion [11]. Expected Divestiture of Better Health VMS Business - The Better Health VMS business represented approximately 3% of the company's fiscal year 2024 net sales, and the divestiture is expected to incur a one-time after-tax charge of $114 million to $134 million [12][13][23]. - The transaction is anticipated to close in the first quarter of fiscal year 2025, subject to regulatory approvals [12][13]. Fiscal Year 2025 Outlook - Net sales are expected to be flat to down 2%, with organic sales projected to increase by 3% to 5% [15]. - Gross margin is anticipated to improve by about 100 basis points, while diluted EPS is expected to range between $4.95 and $5.20, reflecting a significant increase [15][42].