Clorox Company (NYSE:CLX) stock fell Wednesday after the company reported mixed second-quarter fiscal 2026 results.
Details
Adjusted EPS came in at $1.39, which missed the analyst consensus estimate of $1.43.
Sales stood at $1.673 billion, beating the street view of $1.64 billion.
Net sales declined 1% year over year (Y/Y) on a reported and organic basis, driven by lower consumption.
Gross margin fell 60 basis points Y/Y to 43.2%, owing to higher manufacturing and logistics costs.
Segment Performance
Health and Wellness net sales rose 2% Y/Y, driven by a 2-point increase in volume, mainly from additional shipments tied to the final phase of the ERP transition and strong performance in Professional Products.
Also, International net sales rose 7% Y/Y, led by a favorable price mix, positive foreign exchange effects, and higher volume.
However, Household net sales declined 6% Y/Y, with a 3-point decline from lower volume and a 3-point negative impact from price mix.
Also, Lifestyle net sales fell 5% Y/Y, owing to a decrease in volume, primarily from lower consumption.
Management Commentary
“Our second‑quarter results were generally in line with our expectations and reflect continued progress against our strategic priorities. These results support our ability to reaffirm our fiscal year outlook in what remains a challenging and volatile environment,” said Chair and CEO Linda Rendle.
“We remain laser-focused on executing our back-half plans, supported by a strong slate of innovation and investments. At the same time, we are advancing our transformation and are excited to expand our leadership position in health and hygiene through our recently announced acquisition of GOJO Industries.”
Outlook
Clorox reaffirmed its fiscal 2026 adjusted EPS guidance at $5.95–$6.30, versus consensus of $5.90, while slightly narrowing its sales guidance to $6.394 billion–$6.678 billion from $6.390 billion–$6.680 billion, versus consensus of $6.485 billion.
The company said its fiscal 2026 outlook is being weighed down by a temporary inventory issue rather than weaker demand. Retailers built up about two weeks of extra inventory at the end of fiscal 2025 ahead of an ERP system transition, leading to an expected drawdown in early 2026 that will reduce shipments year over year.
The company estimates the inventory correction will cut fiscal 2026 sales growth by about 7.5 percentage points and lower earnings per share by roughly 90 cents, translating into a 30% decline in diluted EPS and a 23% drop in adjusted EPS compared with fiscal 2025.
CLX Price Action: Clorox shares were down 3.11% at $111.40 during premarket trading on Wednesday, according to Benzinga Pro data.
