Clorox exceeded earnings and sales estimates in Q2, but shares dropped 2.4% after hours.

From Nasdaq: 2025-02-04 09:57:00

Clorox Company (CLX) reported second-quarter fiscal 2025 results with top and bottom lines exceeding estimates, but with year-over-year declines in revenues and earnings. The company’s strategic transformation and post-cyberattack recovery efforts led to better-than-expected sales, margins, and EPS. Despite this, Clorox shares dropped 2.4% in after-hours trading, reflecting investor caution.

The company achieved gross margin expansion for the ninth consecutive quarter, driven by cost savings and effective demand creation plans. The fiscal second-quarter results also reflect operational recovery post-cyberattack and divestitures of certain businesses. Clorox plans to invest in transformative technologies, including ERP replacement and digital transformation, impacting operating costs.

Clorox’s net sales of $1.69 billion in the reported quarter exceeded estimates, despite a 15% year-over-year decline. The company’s gross margin expanded by 30 basis points to 43.8%, marking the ninth consecutive quarter of growth. Clorox’s guidance for fiscal 2025 includes expectations of sales decline, organic sales growth, and gross margin expansion, driven by strategic investments and cost management efforts.

Clorox completed the sale of its Better Health Vitamins, Minerals, and Supplements business and will wind down its Glad joint venture with Procter & Gamble by 2026. The company updated its guidance for fiscal 2025, with expectations of adjusted EPS growth and increased gross margin expansion. Clorox’s focus on core areas and strategic priorities aim to unlock additional shareholder value and foster innovation.



Read more at Nasdaq: Clorox Beats Q2 Earnings & Sales Estimates, Updates FY25 Outlook