Why did Clorox miss its second-quarter profit expectations?

Clorox missed its second-quarter profit expectations because consumers are choosing cheaper alternatives to its cleaning products and the company is experiencing higher costs.

What is Clorox acquiring for $2.25 billion?

Clorox is in the process of acquiring GOJO Industries, the maker of Purell, for $2.25 billion.

How has inflation affected Clorox's sales?

Inflation has caused budget-conscious consumers to reduce purchases of branded cleaning products, negatively impacting Clorox's sales.

Home / Business and Economy / Clorox Profit Misses Mark as Shoppers Opt for Cheaper Brands

Clorox Profit Misses Mark as Shoppers Opt for Cheaper Brands

4 Feb

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Summary

Clorox's Q2 profit fell short of market expectations due to rising costs.
Consumers are switching to cheaper alternatives, impacting Clorox sales.
The company is acquiring GOJO Industries for $2.25 billion.

Clorox Profit Misses Mark as Shoppers Opt for Cheaper Brands

Clorox's second-quarter financial results revealed a miss on profit expectations, as the company grappled with consumers opting for less expensive cleaning products. Elevated inflation continues to pressure budget-conscious shoppers, leading to reduced purchases of Clorox's branded items.

The company's Household segment, a significant revenue contributor, experienced a substantial 54% drop in adjusted earnings before interest and taxes. This decline was attributed to increased manufacturing and logistics expenses coupled with lower net sales.