Clorox shares have fallen 9.3% since its fiscal fourth-quarter earnings report a month ago, underperforming the S&P 500, as the company faces margin pressure and a weak outlook. In the quarter, Clorox reported adjusted earnings of $1.66 per share, down 42% year over year but beating estimates by 1.2%, while net sales declined 2% to $1.95 billion, also beating consensus. The GOJO acquisition contributed about 10 percentage points to sales, but organic sales fell 13% due to ERP-related shipment comparisons. Gross margin contracted 520 basis points to 41.3% on higher commodity, manufacturing, and logistics costs. For fiscal 2027, Clorox expects net sales growth of 13-14% including 9.5 points from GOJO, with organic sales up 3.5-4.5%, and adjusted earnings between $5.70 and $6.00 per share, implying 3-8% growth. The company also guided to a gross margin of 42% and free cash flow of 11-13% of net sales. Analysts have revised estimates downward by 21.06% over the past month, and Clorox holds a Zacks Rank #4 (Sell).
The Clorox CompanyQ4 earnings miss and weak fiscal 2027 outlook with margin pressure
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