Household products maker Clorox Q1 revenue beats analyst expectations

Overview

• Clorox fiscal Q1 revenue decreased 19% but beat analyst expectations

• Adjusted EPS for fiscal Q1 beats consensus despite a 54% year-over-year decrease

• Company's ERP transition led to lower shipments and sales decline

Outlook

• Clorox maintains FY 2026 net sales outlook to decline 6% to 10%

• Clorox expects FY 2026 adjusted EPS to be $5.95 to $6.30

• Company focuses on innovation and demand-creation for H2 growth

Result Drivers

• ERP TRANSITION - Lower shipments and sales decline attributed to ERP transition as retailers drew down inventories built up in anticipation of the transition

• HIGHER COSTS - Gross margin decreased due to higher manufacturing and logistics costs, partially offset by cost savings

• PRODUCT INNOVATION - New products introduced to align with emerging consumer trends, aiming to deliver superior value

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 14 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the household products peer group is "buy."

• Wall Street's median 12-month price target for Clorox Co is $128.00, about 12.1% above its October 31 closing price of $112.46

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nPn1QwcvQa

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