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Q2 Deep Dive: Evaluating Clorox's Financial and Operating Metrics
ZACKS· 2026-02-12 19:01
Core Insights - Clorox Company (CLX) reported mixed results for Q2 fiscal 2026, with adjusted earnings of $1.39 per share, missing estimates by 2.8%, while net sales of $1.67 billion exceeded expectations by 2.5% [1][10] - The company's shares have increased by 9.5% since the Q2 results announcement on February 3, 2026, outperforming the industry which declined by 0.2% over the past six months [1] Financial Performance - The International segment showed resilience with a 7% year-over-year sales increase, driven by positive price mix, favorable foreign exchange rates, and increased volumes, with organic sales up 5%, surpassing the consensus estimate of a 0.75% decline [5][10] - The Health and Wellness segment experienced a 2% year-over-year growth in sales, with organic sales also rising 2%, exceeding the Zacks Consensus Estimate of a 3.3% decrease, although adjusted EBIT dipped 2% to $190 million, still above the consensus estimate of $171 million [6][10] - The Household segment faced challenges with a 6% decline in net sales, attributed to lower volume and negative price mix, with organic sales decline exceeding the consensus estimate of a 3.3% decrease; adjusted EBIT increased by 3% to $22 million, but fell short of the consensus estimate of $53 million [7][10] - The Lifestyle segment reported a 5% sales decline, with organic sales also down more than the consensus estimate of a 3.9% decline; adjusted EBIT plummeted 54% to $72 million, although it surpassed the consensus estimate of $66 million [8][10] Strategic Initiatives - Clorox is undergoing a transformation to adapt to a dynamic environment, focusing on strengthening core operations through digital transformation, improved execution, and continuous innovations aimed at enhancing consumer value [2] - The company's long-term success is supported by a disciplined focus on key financial, operational, and strategic metrics that drive efficient growth and reinforce market leadership [3]