Clorox projected a difficult fiscal 2027, warning that inflation and value-focused shoppers would offset recent cost savings. The company expects net sales to rise 13% to 14% for the current fiscal year, with roughly 9.5 percentage points of that growth coming from its acquisition of GOJO Industries, the maker of Purell hand sanitizer. Adjusted earnings per share are forecast at $5.70 to $6.00, representing growth of 3% to 8% over the prior year, while GAAP diluted EPS is expected between $5.41 and $5.71. Gross margin is projected at roughly 42%, as higher-than-normal inflationary headwinds and unfavorable product mix more than offset cost savings. Organic sales are expected to grow approximately 3.5% to 4.5%, with more than 3.5 percentage points of that growth coming from lapping the prior year's ERP-related inventory drawdown.
The Clorox CompanyInflation and value-seeking consumers will challenge fiscal 2027, offsetting cost savings.