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.

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.

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Clorox Profit Misses Mark as Shoppers Opt for Cheaper Brands

Q: 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.

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.

Despite these headwinds, Clorox is actively pursuing expansion in health and hygiene. The company is in the process of acquiring GOJO Industries, the maker of Purell, for $2.25 billion. Clorox also reaffirmed its annual forecast, signaling cautious optimism for the remainder of the fiscal year, though it anticipates performance at the lower end of its projected range.