Clorox Q4 Earnings Call Highlights

Clorox expects organic sales to be flat to slightly higher amid muted category growth and value-focused consumers, while targeting continued market-share gains. The first quarter may be weaker due to Kingsford timing and promotions. The company anticipates more than $200 million in fiscal 2027 supply-chain inflation, which it plans to offset primarily through productivity, selective pricing and revenue-management actions. Gross-margin recovery is expected in the second half, but not a full-year recovery. GOJO, including Purell, is integrating ahead of plan and is expected to be accretive to adjusted EPS in fiscal 2027, while the completed ERP implementation should generate supply-chain and administrative benefits. Clorox continues working to revive its Fresh Step litter business and remains committed to its dividend. Clorox said it is entering fiscal 2027 with improving market-share trends, a completed enterprise resource planning implementation and a plan to offset more than $200 million in expected supply-chain inflation through productivity initiatives and targeted pricing. Chair and CEO Linda Rendle said the company operated through fiscal 2026 in an environment marked by value-seeking consumers, heightened competition, inflation and macroeconomic uncertainty. Clorox has responded by adjusting product offerings, price-pack architecture, promotions, brand investment and distribution, while continuing its broader operational transformation. "While the majority of our businesses are performing at or above expectations, we have taken decisive actions to improve in the areas that are not yet delivering what we expect," Rendle said. She said the company saw sequential improvement in consumption and market share during fiscal 2026, with consumption returning to flat in the fourth quarter and aggregate share down only one-tenth of a percentage point. Clorox expects category growth to remain muted in fiscal 2027, broadly consistent with fiscal 2026, as consumers continue seeking value. The company’s outlook assumes continuity in category conditions and does not contemplate significant disruption from inflation or geopolitical developments. Clorox expects organic sales to be flat to slightly higher for the year, with a slower first quarter primarily due to timing effects in Kingsford grilling products and promotions. Rendle described the first-quarter impact as a “blip,” saying the rest of the year, particularly the back half, should more closely resemble fiscal 2026 trends. Kingsford faced a difficult grilling season as weather affected key holidays. Rendle said Memorial Day was unusually cool and wet across much of the U.S., while widespread heat advisories during the July 4 weekend discouraged grilling. Retailers also emphasized smaller sizes on promotion to appeal to value-oriented shoppers. Clorox plans to adjust its merchandising approach next season by encouraging earlier seasonal purchases. Management expects to continue improving market share in fiscal 2027. Rendle highlighted eight consecutive quarters of share growth in home care, as well as continued share gains in professional and international businesses. The company also cited improving results in Glad and Hidden Valley Ranch, while identifying litter and Kingsford as areas where further progress is needed. Clorox expects fiscal 2027 inflation of more ...