Clorox blames Q1 sales drop on elongated ERP overhaul

Core Insights - Clorox is nearing the completion of its ERP project, having overcome significant challenges during the implementation phase [3][5] - The ERP update is expected to enhance operational efficiency, provide better insights, and improve supply chain visibility [4][5] - The overall digital transformation plan is projected to cost $580 million, exceeding initial estimates of $500 million, raising concerns among analysts [6] Implementation Progress - The company has completed the majority of its ERP implementation in the U.S. and is optimistic about leveraging the new technology [7] - A smaller implementation is anticipated to have minimal impact, allowing teams to fully utilize the ERP system soon [3][5] Financial Impact - The ERP overhaul has negatively affected Clorox's market share during the first quarter, particularly in August, although there were signs of recovery in September and October [7] - The company is now focused on rebuilding momentum and maximizing the value derived from the ERP system [7]