Clorox backs adjusted EPS view $6.95-$7.35, consensus $7.12

Lowers FY25 revenue view to down 1% to flat vs. prior view down 1% to up 2%, consensus $7.1B. The company now expects net sales to be down 1% to flat, including about 2 points of negative impact from the divestiture of its business in Argentina and about 3 points of negative impact from the divestiture of its VMS business. The company expects foreign exchange to be about neutral. Organic sales are now expected to grow 4% to 5%, including 2 to 3 points of expected impact related to the ERP transition, (compared to previous expectation of 1 to 2 points), which is expected to reverse in the front half of the next fiscal year. Excluding the impact of the ERP transition, the company now expects organic sales to be up about 2%. Gross margin is now expected to be up about 150 basis points, primarily due to the benefits of holistic margin management efforts, more than offsetting cost inflation and higher trade promotion spending and higher costs from recently implemented tariffs. This compares to the previous expectation of 125 to 150 basis points.