Clorox Fiscal Q1 Sales Jump 33.3%, Adjusted EPS $1.55; Outlook Seen at Low End on Costs
Clorox opened its 2027 fiscal year with a sharp rebound in sales and profit, but the bleach and Glad bags maker warned that rising costs will push full-year adjusted earnings toward the low end of its forecast. Net sales rose 33.3% to $1.91 billion in the quarter ended Sept. 30 from $1.43 billion a year earlier, according to its 8-K.
Diluted earnings more than doubled to $1.39 a share from $0.65, a 113.8% increase. Adjusted earnings rose 82.4% to $1.55 a share from $0.85. Net earnings attributable to Clorox were $170 million, compared with $80 million.
The comparison was flattered by an easy base. A year ago, retailers were drawing down inventory they had stocked ahead of Clorox's switch to a new enterprise resource planning system, which reduced the year-ago quarter's adjusted earnings by 90 cents a share, the company said. The April acquisition of hand sanitizer maker GOJO, the company behind Purell, added 15 percentage points of sales growth. Organic sales rose 18%.
Gross margin fell 130 basis points to 40.4% from 41.7%, driven by higher commodity, manufacturing and logistics costs.
"The cost environment has become more challenging, with higher inflationary pressures reflected in our updated outlook," Chair and CEO Linda Rendle said. "We have plans in place to mitigate these pressures while continuing to invest behind our brands."
Segment results
Health and Wellness sales jumped 62.5% to $918 million from $565 million, helped by GOJO, and segment adjusted EBIT rose 68.5% to $209 million. Household sales rose 16.9% to $423 million, Lifestyle sales rose 15.5% to $283 million, and International sales grew 11.1% to $281 million. Segment adjusted EBIT rose to $30 million from $27 million in Household, to $60 million from $38 million in Lifestyle, and to $31 million from $19 million in International.
Outlook held, but at the low end
Clorox maintained its fiscal 2027 sales and adjusted EPS ranges. Net sales are still expected to rise 13% to 14%, diluted EPS is still expected at $5.41 to $5.71, and adjusted EPS is still expected at $5.70 to $6.00. The company now expects adjusted EPS closer to the low end of that range.
It lowered its gross margin outlook to an estimated 41.5%, the company said, citing higher-than-normal inflation and negative mix, and now expects selling and administrative expenses at an estimated 15.5% of sales.
Year-to-date operating cash flow rose to $143 million from $93 million.
The company also launched Clorox Purell ProCare, combining its CloroxPro and GOJO professional businesses under one sales and service organization.
By the numbers
- Net sales: $1.91 billion, up 33.3%
- Diluted EPS: $1.39 vs. $0.65
- Adjusted EPS: $1.55, up 82.4%
- Gross margin: 40.4%, down 130 basis points
- Fiscal 2027 adjusted EPS outlook: $5.70 to $6.00, toward the low end
Sources
- Clorox Form 8-K with first-quarter fiscal 2027 earnings release, filed Nov. 2, 2026 (accession 0000021076-26-000044)
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