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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $1.43 $1.39

Revenue bln bln (12

Analysts

)

Q1 Beat $0.85 $0.78

ADJUSTED (13

EPS Analysts

)

Q1 EPS $0.65

Q1 GROSS 41.7%

MARGIN

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 ( CLX ) 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:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)