The Clorox Company (CLX) has seen a 13.1% increase in its stock over the past month, mainly driven by its fiscal fourth-quarter results, which included adjusted earnings of $1.66 per share, surpassing the Zacks Consensus Estimate of $1.64 by 1.2%. Sales reached $1.95 billion, exceeding expectations by 1.8%, despite a 2% year-over-year decline. The recent acquisition of GOJO contributed approximately 10 percentage points to reported sales growth, partially offsetting a 13% organic sales decline.
For fiscal 2027, Clorox forecasts net sales growth of 13-14%, with about 9.5 percentage points coming from GOJO. Projected adjusted earnings per share are between $5.70 and $6.00, reflecting a 3-8% increase. However, fiscal 2026 gross margin decreased by 290 basis points to 42.3%, and inflation is expected to impact margins, with a projected increase of over $200 million, significantly above historical averages.
Challenges remain as organic sales growth for fiscal 2027 is anticipated to be only 3.5-4.5%, with much of that growth attributable to prior-year comparisons. Clorox must balance future sales catalysts with ongoing margin pressures and consumer demand trends to maintain investor confidence.
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