Why Is Clorox (CLX) Down 4.1% Since Last Earnings Report?

Core Insights - Clorox's recent earnings report showed a significant decline in both net sales and organic sales, with adjusted earnings per share (EPS) of 85 cents, a 54% decrease from the previous year [2][3][4] Financial Performance - Clorox reported net sales of $1.43 billion, down 19% year-over-year, primarily due to lower shipments related to the ERP transition [4] - Gross profit fell 26.1% to $596 million, with gross margin contracting by 410 basis points to 41.7% due to reduced volumes and increased manufacturing and logistics costs [5] - The Health and Wellness segment saw a 19% decline in sales to $565 million, while the Household segment also reported a 19% decrease to $362 million [6][7] - The Lifestyle segment experienced a 23% drop in sales to $245 million, and the International segment's sales fell 2% to $253 million [8][9] Guidance and Outlook - For fiscal 2026, Clorox expects net sales to decline by 6-10% compared to the previous year, with organic sales anticipated to decrease by 5-9% [11][12] - EPS is projected to be between $5.60 and $5.95, reflecting a year-over-year decrease of 9-14% [13] - Adjusted EPS is expected to range from $5.95 to $6.30, indicating a decline of 18-23% from the previous year [14] Market Position and Estimates - Estimates for Clorox have trended downward over the past month, with a Zacks Rank of 3 (Hold), suggesting an in-line return in the coming months [15][17] - Clorox has an aggregate VGM Score of B, indicating a favorable position for value investors [16] Industry Comparison - Clorox operates within the Zacks Consumer Products - Staples industry, where competitor Newell Brands has seen a 16.9% increase in stock price over the past month despite reporting a year-over-year revenue decline of 7.2% [18]