CLOROX raised sales and earnings guidance for the current year while also reporting better-than-expected quarterly results, showing that the bleach maker’s business continues to recover from a 2023 hack that disrupted operations.
Net sales are seen rising as much as 2 per cent for the company’s current fiscal year, the maker of Formula 409 cleaner said on Monday (Feb 3) – up from a previous outlook that the measure would be unchanged from the prior year or decline as much as 2 per cent.
Clorox also raised its projection for adjusted earnings per share, and in the quarter ended Dec 31, organic sales and adjusted earnings topped expectations.
The shares rose 1.3 per cent at 4.10 pm in extended New York trading.
Clorox has been spending more on marketing while discounting some products. It has also introduced new items such as Burt’s Bees lip balms with vitamins and heavier duty kitty litter designed to protect against odours for 30 days.
The results suggest the measures are helping the company to win back some customers after a cyberattack forced it to surrender shelf space at retailers. Clorox has struggled to regain customers who switched to other brands of cat litter and trash bags.
The company said its current fiscal year is benefiting from extra shipments related to its digital transition, which is part of a plan to reduce costs and make operations more efficient.
Clorox also said it’s planning to buy Procter & Gamble’s (P&G) 20 per cent stake in a joint venture on Glad bags and wraps. The companies decided to wind down the joint venture, effective Jan 31, 2026, Clorox said. Clorox intends to continue licensing the Febreze and Gain trademarks from P&G. BLOOMBERG
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