Clorox Beats Q4 Estimates and Forecasts Sales Growth

The Clorox Company reported fiscal fourth quarter net sales of $1.95 billion, exceeding analyst expectations despite a 2% decrease from the previous year. The decline was attributed to lower sales volumes and a high comparison base following a prior software transition. Growth was notably concentrated in the health and wellness division, where net sales rose 16% following the acquisition of GOJO Industries, the manufacturer of Purell hand sanitizer.

For the new fiscal year beginning July 1, Clorox forecasts a net sales increase between 13% and 14%. Despite this optimistic growth projection, the company anticipates significant headwinds, including $200 million in additional supply chain costs for fiscal year 2027 driven by inflation.

CEO Linda Rendle, who has announced plans to step down from her position for health reasons, cautioned that the company expects a challenging operating environment characterized by a value-seeking consumer and continued cost volatility.