Clorox Company ( (CLX) ) has released its Q1 earnings. Here is a breakdown of the information Clorox Company presented to its investors.
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The Clorox Company, a leading player in the consumer goods sector, is renowned for its diverse range of household and personal care products, including well-known brands like Clorox, Glad, and Burt’s Bees. Headquartered in Oakland, California, Clorox has a strong commitment to sustainability and innovation.
In its first-quarter fiscal year 2026 earnings report, Clorox reported a decline in both sales and earnings, primarily attributed to the anticipated impact of its enterprise resource planning (ERP) transition. The company faced a 19% decrease in net sales and a 19% drop in diluted earnings per share compared to the same period last year.
Key financial highlights from the report include a decrease in gross margin by 410 basis points to 41.7%, driven by lower volumes and increased manufacturing and logistics costs. Adjusted earnings per share saw a significant decline of 54% to $0.85, largely due to the ERP transition’s impact on sales. Additionally, net cash provided by operations fell by 58% year-over-year.
Strategically, Clorox introduced new products aligned with emerging consumer trends and completed significant phases of its U.S. ERP implementation. The company received recognition for innovation and was named among America’s Greatest Companies and the World’s Most Trustworthy Companies.
Looking ahead, Clorox maintains its full-year outlook, expecting net sales to decline between 6% and 10%. The company is focused on accelerating profitable growth through innovation and strong demand-creation initiatives, leveraging consumer insights and digital tools to navigate ongoing market challenges.