The Clorox Company (CLX) has entered fiscal 2027 with the acquisition of GOJO Industries, now operating as Clorox Purell, which is projected to contribute approximately 9.5 percentage points to an expected 13-14% growth in net sales. The acquisition, completed in April 2026, enhances Clorox’s health and hygiene platform, with GOJO driving significant growth, particularly in the first quarter, where net sales are anticipated to rise 31-32%.
Despite the growth, Clorox faces challenges, including integration costs and inflation pressures. The fiscal year 2027 adjusted earnings are projected to be between $5.70 and $6.00 per share, with reported earnings expected at $5.41-$5.71 per share, reflecting about $0.29 in GOJO-related costs. The gross margin for the fiscal year is forecasted at 42%, alongside inflation impacts exceeding $200 million, more than double historical levels.
The company aims for improved earnings support through GOJO’s integration, with financial benefits expected by the fourth quarter. Nevertheless, margin execution remains critical as broader market conditions reveal varied forecasts, with competitors like Procter & Gamble expecting only 1-3% organic sales growth.
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