Clorox lifts annual profit forecast as cost-savings measures pay off

Updates with company comments from prepared remarks

Feb 3 (Reuters) - Clorox CLX.N raised its annual profit forecast for the second time on Monday, bolstered by cost-savings measures, while it bets on innovation to help revive demand for its household cleaning products.

The company has been introducing novelty to its product line, including the Brita Plus water filters and new fragrances for its Poett multi-purpose cleaners, in a bid to entice consumers spending on household products after several quarters of weakness.

Clorox has also divested underperforming businesses and reduced operational costs, while ramping up advertising and promotions.

The company now expects fiscal 2025 adjusted earnings per share of $6.95 to $7.35, compared with prior expectations of $6.65 to $6.90.

However, its shares reversed course to fall about 2% in extended trade after the company said it was closely watching additional risks in inflation and tariffs, which could disrupt the supply chain.

President Donald Trump announced new tariffs on imports from Mexico, Canada and China over the weekend, and said they may cause short-term pain for Americans.

Trump later paused tariffs on Mexico and Canada for a month on Monday.

The company expects annual net sales to be down 1% to up 2%, compared with its earlier target of flat to down 2%, to account for stronger foreign exchange headwinds in the back half of this fiscal year, which typically ends in June, mainly from Mexico and Canada.

Clorox's adjusted profit of $1.55 per share beat estimates of $1.41 each, as per data compiled by LSEG.

The Pine-Sol parent's net sales of $1.69 billion were also ahead of estimates of $1.63 billion for the quarter ended Dec. 31.

Clorox said it would take full control of the Glad trash bags line, ending the joint venture with consumer-packaged goods giant Proctor & Gamble PG.N by Jan. 31, 2026.

P&G also topped quarterly estimates helped by a rejuvenated product pipeline.