CAGNY 2026 Linda Rendle Chair & Chief Executive Officer Luc Bellet EVP & Chief Financial Officer Safe Harbor Except for historical information, matters discussed in this presentation, including statements about the success of the Company's future volume, sales, costs, cost savings, earnings, earnings per share, including as a result of the GOJO acquisition, foreign currency exchange rates, cash flows, plans, objectives, expectations, growth or profitability, are forward-looking statements based on managemen ...

Core Viewpoint - Clorox Company (CLX) is expected to report declines in both revenue and earnings for the second quarter of fiscal 2026, with significant cost pressures impacting profitability [1][4][8]. Financial Performance Expectations - The Zacks Consensus Estimate for fiscal second-quarter revenues is $1.63 billion, reflecting a 3.3% decline from the previous year [2]. - The consensus estimate for earnings per share (EPS) has decreased by 2.1% over the past 30 days to $1.43, indicating a 7.7% decline year-over-year [2]. - Clorox has a trailing four-quarter earnings surprise of 10.2%, including a 9% surprise in the last reported quarter [2]. Earnings Prediction Model - The current model indicates that Clorox is unlikely to achieve an earnings beat this quarter, with an Earnings ESP of -1.04% and a Zacks Rank of 3 (Hold) [3]. Cost Pressures and Profitability - Clorox is facing elevated cost pressures from manufacturing, logistics, and promotional spending, which are expected to negatively impact profitability throughout fiscal 2026 [4][6]. - Operating income is projected to decline by 8.4% year-over-year, with a contraction of 90 basis points in operating margin [5]. Market and Competitive Environment - The company anticipates a challenging external environment in 2026, with consumers remaining value-conscious and overall category consumption expected to be sluggish [7]. - Competitive intensity is expected to remain high, alongside tariff-related uncertainties [7]. Strategic Initiatives - Clorox is focusing on brand strength, disciplined cost management, and the execution of its IGNITE strategy to support recovery [10]. - The company is nearing completion of a multi-year digital transformation, including a new ERP system aimed at enhancing operational efficiency [12]. - A holistic margin-management program is in place to optimize costs and productivity, which is expected to support growth initiatives despite near-term challenges [11]. Valuation Metrics - Clorox stock is currently trading at a forward 12-month price-to-earnings ratio of 17.13X, which is below the industry average of 18.15X [14]. - Over the past three months, Clorox has seen a decline of 2.5%, underperforming the industry’s decline of 0.2% [15].