Core Viewpoint - The Clorox Company will participate in the Consumer Analyst Group of New York's annual conference, featuring key executives who will present insights into the company's performance and strategy [1]. Company Overview - The Clorox Company, headquartered in Oakland, California, has been operational since 1913 and is known for its diverse portfolio of trusted brands, including Brita®, Burt's Bees®, Clorox®, and others [2]. - The company has integrated Environmental, Social, and Governance (ESG) factors into its business reporting and was ranked No. 1 on Barron's 100 Most Sustainable Companies list for the second consecutive year in 2024 [2].

Core Insights - Clorox Company reported better-than-expected second-quarter financial results, with revenue of $1.69 billion surpassing the consensus estimate of $1.63 billion and adjusted earnings of $1.55 per share exceeding analyst expectations of $1.41 per share [1][2] Financial Performance - The company achieved strong results across sales, margin, and earnings per share (EPS) due to effective demand creation plans, which also contributed to share growth [2] - Clorox raised its full-year earnings forecast from a range of $6.65 to $6.90 per share to a new range of $6.95 to $7.35 per share, compared to estimates of $6.84 per share [2] Future Outlook - The company guided for 2025 net sales to be in a range of down 1% to up 2% [2] - Clorox is undergoing a significant transformation with its Enterprise Resource Planning transition in the U.S., which is expected to support long-term profitable growth [2] Market Reaction - Following the earnings announcement, Clorox shares fell 6.6% to trade at $149.19 [3] - Analysts adjusted their price targets for Clorox, with Wells Fargo raising it from $157 to $161 and JP Morgan increasing it from $171 to $173 [5]

Core Insights - Clorox Company reported second-quarter fiscal 2025 results with both revenue and earnings surpassing Zacks Consensus Estimates, although both metrics declined year over year [1][2][6] Financial Performance - Adjusted earnings per share (EPS) was $1.55, exceeding the Zacks Consensus Estimate of $1.39, but down 28% from $2.16 in the prior year [6] - Net sales reached $1.69 billion, a 15% decrease from the previous year, yet above the Zacks Consensus Estimate of $1.64 billion; organic sales fell 9% [7] - Gross margin expanded by 30 basis points year over year to 43.8%, marking the ninth consecutive quarter of margin expansion, driven by cost savings and divestitures [8] Segment Performance - Health and Wellness segment sales declined 13% year over year to $628 million, with adjusted EBIT dropping 25% [11] - Household segment sales fell 11% year over year to $446 million, with adjusted EBIT down 48% [12] - Lifestyle segment sales decreased 16% year over year to $338 million, with adjusted EBIT declining 36% [13] - International segment sales dropped 12% year over year to $274 million, with adjusted EBIT down 34% [14] Strategic Initiatives - Clorox plans to invest $560-$580 million in transformative technologies over the next few years, with 70% of this amount recorded as incremental operating costs [15] - The company completed the sale of its Better Health Vitamins, Minerals, and Supplements business to Piping Rock Health Products, aligning with its focus on core areas [17] - Clorox and Procter & Gamble will wind down their Glad joint venture by January 31, 2026, allowing Clorox greater agility and innovation [18] Guidance and Outlook - Clorox updated its fiscal 2025 guidance, expecting net sales to decline 1% to 2%, with organic sales anticipated to increase 4-7% [19] - The gross margin is projected to expand by 125-150 basis points, driven by margin management efforts [20] - Advertising and sales promotion spending is expected to be 11-11.5% of net sales, reflecting Clorox's commitment to brand investment [21] - The company forecasts an adjusted EPS of $6.95-$7.35, indicating a year-over-year increase of 13-19% [22]

Collaboration Overview - Hidden Valley Ranch has announced its first luxury fashion collaboration with designer Emma Gage of MELKE, debuting during New York Fashion Week with custom pieces inspired by Hidden Valley Ranch [1][4] - The collaboration features five collectible pieces, including two cardigans, a knit vest, a blouse, and a pair of pants, all designed with vibrant geometric patterns inspired by the Hidden Valley Ranch brand [3][4] Designer Insights - Emma Gage, the founder of MELKE, draws inspiration from her Midwestern roots and the cultural significance of potlucks, merging nostalgic storytelling with the playful aesthetic of Hidden Valley Ranch [2][3] - Gage emphasizes the importance of incorporating elements of ranch culture into her Fall 2025 collection, highlighting the brand's evolution into a cultural icon [3] Product Details - The collection will be available for purchase on HiddenValleyRanch.com, melkenyc.com, and select retailers nationwide this fall, with prices ranging from $240 to $1,000 [4] - The collaboration aims to express America's love for ranch dressing in a fashionable context during a prominent fashion event [4] Company Background - Hidden Valley Ranch, founded in 1954, is recognized as the original ranch dressing brand in the U.S. and offers a variety of ranch products available in grocery retailers nationwide [6] - MELKE, launched in 2020 by Emma Gage, focuses on joyful, colorful designs and sustainable production practices, emphasizing individuality and slow fashion [7]

Financial Performance - For the three months ended December 31, 2024, net sales decreased by 15% to $1,686 million compared to $1,990 million in the prior year[91]. - Gross profit for the same period was $738 million, a decrease of 15%, while gross margin increased to 43.8% from 43.5% due to cost savings and divestitures[95]. - Selling and administrative expenses decreased by 13% to $280 million for the three months ended December 31, 2024, representing 16.6% of net sales[97]. - The diluted net earnings per share (EPS) increased by $0.79, or 105%, in the current three-month period, and by $1.42, or 154%, in the current six-month period, primarily due to the pension settlement charge in the prior period and higher net sales[105][106]. - Total net sales for the reportable segments decreased to $1.686 billion in the current three-month period, down 13% from $1.936 billion in the prior period[108]. - Segment adjusted EBIT for the total reportable segments was $258 million in the current three-month period, down from $386 million in the prior period[108]. - Adjusted EBIT for the three months ended December 31, 2024, was $258 million, compared to $386 million in the same period of 2023, reflecting a decrease of 33%[138]. Segment Performance - The Health and Wellness segment reported an organic sales growth of 8% for the three months ended December 31, 2024[93]. - The Health and Wellness segment reported net sales of $628 million, a decrease of 13%, while the Household segment saw a decline of 11% to $446 million in the current three-month period[109][111]. - The International segment's net sales decreased by 12% to $274 million, primarily due to the divestiture in Argentina[115][116]. - Organic sales growth for the total Company decreased by 9% for the three months ended December 31, 2024, with declines in all segments except for International, which grew by 6%[142]. Cost Management and Investments - Advertising costs increased by 3% to $191 million, with a rise in advertising spend as a percentage of net sales from 9.3% to 11.3%[98]. - The Company continues to invest in brand capabilities and product innovation to drive consistent, profitable growth over time[86]. - The Company incurred approximately $26 million and $55 million in operating expenses related to digital capabilities and productivity enhancements during the three and six months ended December 31, 2024, respectively[141]. - The Company expects approximately 70% of its incremental operating costs related to its digital capabilities investment to be recorded within selling and administrative expenses over the next five years[139]. - The Company aims to implement cost savings and efficiencies through a streamlined operating model and digital capabilities[33]. Cash Flow and Financing - Net cash provided by operations was $401 million in the current six-month period, compared to $173 million in the prior six-month period, driven by higher cash earnings and lower tax payments[121][122]. - Net cash provided by investing activities was $35 million in the current six-month period, compared to a net cash used of $56 million in the prior period, mainly due to proceeds from the sale of the Better Health VMS business[125]. - Net cash used by financing activities was $346 million in the current six-month period, an increase from $104 million in the prior period, primarily due to higher treasury stock purchases[126]. - As of December 31, 2024, the Company maintained a $1,200 million revolving credit agreement with no borrowings under the agreement[129]. - The Company repurchased 906 thousand shares of common stock at a cost of $150 million during the three months ended December 31, 2024, and 1,695 thousand shares at a cost of $257 million during the six months ended December 31, 2024[131]. - Dividends per share declared increased from $1.20 in Q4 2023 to $1.22 in Q4 2024, with total dividends paid rising from $149 million to $151 million[132]. Tax and Regulatory Environment - The effective tax rate on earnings for the three months ended December 31, 2024, was 18.1%, down from 29.3% in the prior year[101]. - The effective tax rate on earnings was 18.1% for the current three-month period, down from 29.3% in the prior period, primarily due to an international legal entity reorganization[104]. Strategic Initiatives and Challenges - The divestiture of the Argentina and Better Health VMS businesses is part of the Company's strategy to reduce volatility and improve margins[86]. - The Company anticipates continued volatility in the operating environment for the remainder of fiscal year 2025 due to macroeconomic conditions[85]. - The Company faces unfavorable economic and geopolitical conditions, including supply chain disruptions and rising inflation, impacting its operations[33]. - The Company is recovering from a cyberattack in August 2023, which poses risks related to information technology systems and potential security breaches[33]. - The Company is experiencing intense competition in its markets, which may affect its ability to drive sales growth and increase market share[33]. - The Company is dependent on key customers, and risks related to customer consolidation and ordering patterns could impact revenue[33]. - The Company is exposed to international trade risks, including foreign currency fluctuations and changes in governmental policies, which could affect its operations[33]. - The Company is facing challenges in attracting and retaining key personnel due to labor market conditions, including rising labor costs[33]. - The Company is subject to risks related to acquisitions and divestitures, including potential asset impairment charges and integration costs[33]. - The Company must manage environmental, social, and governance (ESG) issues, which could impact its reputation and operating costs[33].

Financial Performance - Net sales decreased 15% to $1.69 billion compared to a 16% increase in the year-ago quarter, with organic sales down 9%[4] - Adjusted diluted earnings per share (EPS) for the three months ended December 31, 2024, was $1.55, a decrease of 28% compared to the adjusted EPS of $2.16 for the same period in 2023[31] - The company reported net sales of $1,686 million for the three months ended Dec. 31, 2024, a 15% decrease from $1,990 million in the same period of 2023[36] - The gross profit for the three months ended Dec. 31, 2024, was $738 million, down from $866 million in the same period of 2023[36] - The adjusted EBIT for the three months ended Dec. 31, 2024, was $258 million, a 33% decrease compared to $386 million in the same period of 2023[35] - The Health and Wellness segment reported net sales of $628 million for the three months ended Dec. 31, 2024, a 13% decrease from $720 million in the same period of 2023[37] Future Outlook - The company expects net sales for fiscal year 2025 to be down 1% to up 2%, with organic sales projected to be up 4% to 7%[9] - Organic sales growth outlook for fiscal year 2025 excludes about 2 points of negative impact from the divestiture of the Argentina business and about 3 points from the Better Health VMS business[20] - The company expects to incur operating expenses of approximately $105-$115 million related to digital capabilities and productivity enhancements in fiscal year 2025[34] Operational Efficiency - Year-to-date net cash provided by operations was $401 million, representing a 132% increase compared to $173 million in the year-ago period[4] - Clorox achieved its ninth consecutive quarter of gross margin expansion, supported by strong cost savings[6] - Gross margin is expected to increase by 125 to 150 basis points, primarily due to holistic margin management efforts[9] Investments and Innovations - The company launched several new products, including the Hidden Valley Ranch Easy Squeeze bottle and a full suite of Brita Plus pitchers and dispensers[6] - Clorox was recognized with multiple innovation awards for its use of AI in product development and sustainability efforts[6] - The total incremental investment for digital capabilities and productivity enhancements is projected to be between $560 million and $580 million over five years, with approximately 70% of this amount expected to be recorded as operating costs[26][27] Tax and Legal Matters - The effective tax rate is now expected to be about 26%, with an adjusted effective tax rate of about 23% excluding the impact of the VMS sale[9] - The effective tax rate for the three months ended December 31, 2024, was 18.1%, compared to 29.3% for the same period in 2023[31] - The company recognized approximately $25 million in insurance recoveries related to the cyberattack during the three months ended December 31, 2024[31] - The company incurred cyberattack costs of $25 million for the three months ended Dec. 31, 2024, net of insurance recoveries[35] Financial Position - Total assets decreased to $5,577 million as of 12/31/2024, down from $5,751 million on 6/30/2024 and $5,908 million on 12/31/2023[38] - Current liabilities increased to $1,730 million as of 12/31/2024, compared to $1,574 million on 6/30/2024 and $2,022 million on 12/31/2023[38] - Long-term debt remained stable at $2,483 million as of 12/31/2024, slightly up from $2,481 million on 6/30/2024 and $2,479 million on 12/31/2023[38] - Stockholders' equity showed a significant decline to $121 million as of 12/31/2024, down from $492 million on 6/30/2024 and $218 million on 12/31/2023[38] - Cash and cash equivalents increased to $290 million as of 12/31/2024, up from $202 million on 6/30/2024 but down from $355 million on 12/31/2023[38] - Receivables decreased to $603 million as of 12/31/2024, compared to $695 million on 6/30/2024 and $679 million on 12/31/2023[38] - Inventories decreased to $592 million as of 12/31/2024, down from $637 million on 6/30/2024 and $655 million on 12/31/2023[38] - Total current assets slightly increased to $1,632 million as of 12/31/2024, compared to $1,622 million on 6/30/2024 but down from $1,804 million on 12/31/2023[38] - The company reported a retained earnings of $68 million as of 12/31/2024, a decrease from $250 million on 6/30/2024 and $241 million on 12/31/2023[38] - Total liabilities decreased to $5,456 million as of 12/31/2024, down from $5,259 million on 6/30/2024 and $5,690 million on 12/31/2023[38] Divestitures - The company completed the divestiture of its Better Health VMS business, which is expected to support its IGNITE strategy and improve sales growth and margins[22] - The company reported a loss on divestiture of $118 million related to the Better Health VMS business during the six months ended Dec. 31, 2024[34]

OAKLAND, Calif., Feb. 3, 2025 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today reported results for the second quarter of fiscal year 2025, which ended Dec. 31, 2024. Alongside these results, the company also announced that Clorox and P&G have jointly decided to wind down the Glad® bags and wraps joint venture as of Jan. 31, 2026, and the company intends to acquire P&G's 20% interest in the venture at its termination.   Second-Quarter Fiscal Year 2025 Summary Following is a summary of key results for th ...

Athitat Shinagowin/iStock via Getty Images Listen here or on the go via Apple Podcasts and Spotify Steven Cress talks to Kim Khan about his top dividend picks for the year. How dividend stocks may fare in 2025 (1:25). Highlighting Quant dividend grades (5:05). Why NewLake Capital Partners is a hold but still recommended (7:20). John Wiley & Sons' great safety grade; Clorox's good diversification and profitability (8:45). CareTrust REIT's strong valuation (11:45). Northrop Grumman's record backlog (13 ...

OAKLAND, Calif., Jan. 28, 2025 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today announced that after nearly 30 years with the company, Chief Financial Officer Kevin Jacobsen has decided to retire effective April 1. Luc Bellet, an 18-year Clorox veteran, will succeed Kevin and they will work together on an orderly transition. Luc Bellet, The Clorox Company Jacobsen joined Clorox in 1995 and has served as CFO since 2018. During his tenure as CFO, Jacobsen has driven the company's IGNITE strategy and ...

The Clorox Company (CLX) is likely to register a decline in top and bottom lines when it reports second-quarter fiscal 2025 results on Feb. 3, after market close.The Zacks Consensus Estimate for revenues is pegged at $1.64 billion, suggesting a decrease of 17.8% from the prior-year quarter. The consensus mark for quarterly earnings has risen 1.4% in the past seven days to $1.40 per share, indicating a decline of 35.2% from the figure reported in the year-ago quarter. CLX delivered an earnings surprise of 45 ...