Clorox Co

Latest Results (11.11.2025):

Clorox Co’s Q1 Fiscal Year 2026 earnings report, covering the period ending September 30, 2025, reveals significant challenges as the company navigates an ERP transition and the impact of a prior divestiture. The results show a 19% decline in net sales to $1.43 billion, a 17% drop in organic sales, and a sharp decrease in profitability marked by a 410 basis point contraction in gross margin and diluted EPS falling from $0.80 to $0.65. The company attributes these setbacks to lower shipments as retailers deplete pre-transition inventories, alongside higher manufacturing and logistics costs, while still maintaining its full-year outlook by emphasizing digital transformation and product innovation.

Net Sales & Organic Sales Decline

Clorox Co experienced a 19% decrease in net sales to $1.43 billion in Q1 FY2026, driven by lower shipments due to the ERP transition. Organic sales declined by 17%, largely due to reduced volume from this transition.

Gross Margin & EPS Performance

Gross margin fell by 410 basis points to 41.7% from 45.8% last year. Diluted EPS dropped 19% to $0.65, and adjusted EPS saw a more pronounced decline of 54% to $0.85, mainly impacted by lower net sales and the legacy effects of a prior divestiture.

Operational Impact & Future Outlook

The ERP transition led retailers to draw down on higher inventory levels built in the previous quarter, which contributed to the current sales decline. Despite these challenges, Clorox Co is confident in its strategy to accelerate profitable growth through innovation and digital transformation, maintaining a full-year outlook with expected net sales decline between 6% and 10% and ongoing investments in enhancing operational efficiency.