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Clorox Profit Misses Mark as Shoppers Opt for Cheaper Brands
4 Feb
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'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.
