Company Overview - The Clorox Company (CLX) has a market cap of $14.9 billion and is a leading global manufacturer and marketer of consumer and professional products, operating through four segments: Health and Wellness, Household, Lifestyle, and International [1] - Clorox's product offerings include trusted brands such as Clorox, Pine-Sol, Glad, Kingsford, Hidden Valley, Brita, and Burt's Bees, sold across various channels including mass retailers, grocery stores, and e-commerce platforms [2] Stock Performance - CLX shares have decreased by 29.3% from their 52-week high of $171.37, while the stock has seen a marginal rise over the past three months, outperforming the Consumer Staples Select Sector SPDR Fund (XLP), which declined by 3.3% [3] - Year-to-date, CLX stock is down 25.4%, which is a more significant decline compared to XLP's slight drop, and over the past 52 weeks, CLX shares have decreased by 25.9%, while XLP dipped by 5.7% [4] Financial Performance - Clorox reported a stronger-than-expected Q4 2025 adjusted EPS of $2.87 and net sales of $1.99 billion; however, shares fell nearly 2% the following day due to a weak FY2026 outlook [5] - The company anticipates a decline in net sales by 6% to 10% and organic sales by 5% to 9%, primarily due to a reversal of incremental ERP shipments that had previously boosted fiscal 2025 results [5] - EPS is projected to fall sharply to between $5.60 and $5.95, with adjusted EPS expected to be between $5.95 and $6.30, reflecting an 18% to 23% decline [5] Analyst Sentiment - Analysts are cautious about Clorox's prospects, with a consensus rating of "Hold" from 19 analysts, and a mean price target of $132.44, indicating a premium of 9.6% to current levels [6]

Delivers strong margin expansion and adjusted EPS growth for FY25 despite challenging environment in the second half of the fiscal year OAKLAND, Calif., July 31, 2025 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today reported results for the fourth quarter and fiscal year 2025, which ended June 30, 2025.Fourth-Quarter Fiscal Year 2025 SummaryThe following is a summary of key fourth-quarter results, which reflect the temporary benefit from incremental shipments related to building retailer inventory in ad ...

Core Insights - The Clorox Company reported lower-than-expected sales for the third quarter of fiscal year 2025, with net sales decreasing by 8% to $1.67 billion, primarily due to divestitures and a challenging consumer environment [1][5][3] - Despite the sales decline, the company maintained overall market shares and achieved its tenth consecutive quarter of gross margin expansion, increasing gross margin by 240 basis points to 44.6% [1][5][6] - The company expects continued organic sales growth and strong earnings growth for the fiscal year, despite macroeconomic uncertainties impacting shopping behaviors [3][8] Financial Performance - Net sales decreased 8% to $1.67 billion, with organic sales down 2% due to unfavorable price mix and flat organic volume [5][6] - Diluted EPS increased 466% to $1.50 from a loss of $0.41 in the prior year, influenced by the lapping of losses from divestitures and cyberattack insurance recoveries [5][6] - Adjusted EPS decreased 15% to $1.45 from $1.71, primarily due to lower net sales, partially offset by higher gross margin [5][6] Strategic and Operational Highlights - The company maintained market shares despite complex geopolitical and macroeconomic conditions and continued to invest in product innovations [6][3] - Clorox achieved zero-waste-to-landfill status across all global manufacturing plants where infrastructure allows [6] - The company introduced several new products, including Burt's Bees Boosted Tinted Balm and Clorox Scentiva ToiletWand Refills, to meet consumer needs [6] Fiscal Year 2025 Outlook - The company updated its fiscal year 2025 outlook, expecting net sales to be down 1% to flat, with organic sales growth projected at 4% to 5% [9][13] - Diluted EPS is expected to range between $5.73 and $6.13, reflecting a year-over-year increase of 155% to 172% [10][13] - The outlook includes anticipated benefits from incremental shipments related to the company's ERP transition, expected to contribute 2% to 3% to organic sales growth [9][13]