Clorox sees FY26 gross margin down 50-100 basis points

FY26 gross margin is expected to be down 50 to 100 basis points. The reversal of the impact from incremental shipments associated with ERP transition in the prior fiscal year is expected to result in about a 100 basis points of headwinds. Selling and administrative expenses are expected to be about 16% of net sales, which includes about 90 basis points of impact from the company’s strategic investments in digital capabilities and productivity enhancements. Advertising and sales promotion spending is expected to be about 11% of net sales, reflecting the company’s ongoing commitment to invest behind its brands. The company’s effective tax rate is expected to be about 24%.