Clorox Reports Fiscal 2026 Results Amid Strategic Transformation

Net sales for the quarter fell 2% to $1.95 billion, reflecting the ongoing impact of lapping incremental shipments from the prior year’s ERP system transition. While the GOJO acquisition contributed 10 points to top-line growth, organic sales declined 13% as retailers continued to work through inventory levels. Gross margin narrowed to 41.3%, pressured by lower volumes and costs associated with integrating the new health and hygiene portfolio.

For the full fiscal year 2026, Clorox saw net sales dip 5% to $6.72 billion. Earnings were significantly impacted by transaction costs and the conclusion of a massive $580 million digital modernization project. Despite these headwinds, CEO Linda Rendle noted that the company has strengthened its foundation, pointing to a robust innovation pipeline that includes new launches across brands like Burt’s Bees and Glad. Looking ahead to fiscal 2027, the company forecasts a return to growth, with net sales expected to rise between 13% and 14%, fueled by the full integration of its expanded health platform and more favorable year-over-year comparisons.