Clorox (CLX)
NYSEConsumer StaplesHousehold & Personal ProductsSnapshot 2026-07-07
$97.42+0.17%
Close 2026-07-07 · 1-day change
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Track CLX free→Clorox integrates the Gojo acquisition to expand its product range and boost growth. The company aims to manage gross margin decline despite higher costs, targeting about 43.2% gross margin next quarter. Sales have stabilized around $1.67 billion, showing progress against prior declines. Profit margins near 14.4% PE and a dividend yield of 6% support steady returns.
Clorox faces ongoing sales stagnation with flat revenue growth and persistent margin pressure. The company’s gross margin has declined 140 basis points due to cost headwinds. CEO transition and volatile management add uncertainty. Analysts have lowered EPS guidance to $5.55 for fiscal 2026, reflecting softness.
The market prices in about 12% revenue growth and a price roughly 12% above our fair value near $87. Our fair value is below the Street median, indicating some optimism. We see risk in margin and sales targets given recent softness and lowered guidance.
Breaks if: EPS guidance cut below $5.45 or actual EPS falls below $5.45
Breaks if: Integration progress score falls below 50%
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on integrating GOJO Industries to expand product portfolio and drive growth.
Breaks if: Gross margin falls below 42%
Address the decline in gross margin due to higher costs and unfavorable mix.
Stated in 4 of last 4 quarters. Gross margin decreased 140 basis points to 43.2% from 44.6% in the year-ago quarter, primarily due to higher manufacturing and logistics costs. The company has been addressing this decline, but progress remains limited as margins continue to face headwinds.
“Gross margin decreased 140 basis points to 43.2% from 44.6% in the year-ago quarter.”
“Gross margin is still expected to be down 50 to 100 basis points.”
“Gross margin is expected to be down 50 to 100 basis points.”
“Gross margin is now expected to be up about 150 basis points.”
Breaks if: Net sales fall below $1.6 billion
Focus on reversing the decline in net sales and improving market share.
Stated in 4 of last 4 quarters. Net sales of $1.67 billion were flat versus the year-ago quarter, indicating limited progress in reversing the sales decline. The company continues to focus on improving market share, but the trajectory remains stagnant with ongoing challenges.
“Net sales of $1.67 billion were flat versus the year-ago quarter.”
“The company still expects net sales to be down 6% to 10%.”
“Net sales are expected to be down 6% to 10% compared to the prior year.”
“The company now expects net sales to be down 1% to flat.”