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Clorox's IGNITE Plan & Other Strategic Efforts Progress Well
CLXClorox(CLX) ZACKS·2025-03-03 17:55

Core Insights - Clorox Company (CLX) is performing well due to robust business strategies and international expansion efforts [1][2] - The company has completed the sale of its Better Health Vitamins, Minerals and Supplements business, focusing on core areas to unlock shareholder value [2][3] - Clorox has achieved nine consecutive quarters of gross margin expansion, with a year-over-year increase of 30 basis points in the second quarter of fiscal 2025 [4] Business Strategies - Clorox is advancing its transformation to become a resilient company focused on long-term value creation [2] - The IGNITE strategy aims to improve efficiency and innovation across all business areas, strengthening competitive advantage [5] - The company is investing in digital capabilities, with advertising expenses rising 2.7% year over year to 191millioninthesecondquarteroffiscal2025[7]FinancialPerformanceFiscal2025netsalesareexpectedtodeclineby1191 million in the second quarter of fiscal 2025 [7] Financial Performance - Fiscal 2025 net sales are expected to decline by 1% to grow by 2%, with gross margin growth potentially offset by cost inflation and higher promotional expenses [6] - The consensus estimate for fiscal 2025 implies sales growth of 0.8% and earnings per share (EPS) growth of 15.9% year over year [11] - Clorox stock has gained 3.6% over the past year, compared to the industry's 12.1% growth, with a current price/earnings ratio of 22.39 [9][10] Market Outlook - Analysts are optimistic, with the Zacks Consensus Estimate for Clorox's fiscal 2025 EPS rising by 5.1% to 7.15 in the past 30 days [10]