Assessing Clorox Stock Amid GOJO’s Expansion and Profit Challenges

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The Clorox Company (CLX) has entered fiscal 2027 with a strengthened health-and-hygiene platform following its acquisition of GOJO, which is projected to contribute approximately 9.5 percentage points to net sales growth. For fiscal 2027, Clorox anticipates total net sales increasing by 13-14%, with adjusted earnings per share expected between $5.70 and $6.00, reflecting a rise of 3-8%.

Despite this upward outlook, Clorox has faced margin pressures; fiscal 2026 gross margin fell by 290 basis points to 42.3%. The fourth-quarter gross margin dropped 520 basis points to 41.3%, impacted by higher commodity and logistics costs along with significant inflation, projected to exceed $200 million in fiscal 2027.

During the fourth quarter of fiscal 2026, Clorox reported net sales of $1.95 billion, a 2% decline year-over-year but above the Zacks Consensus Estimate of $1.91 billion. Health and Wellness sales climbed 16% to $860 million, largely attributed to the GOJO acquisition.

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