The Clorox Company (NYSE:CLX) shares plunged 6% intra-day today after the company reported third-quarter earnings and revenue below expectations and trimmed its full-year sales outlook amid shifting consumer behavior and macroeconomic headwinds.
The company posted adjusted earnings of $1.45 per share, missing analyst estimates of $1.57. Revenue declined 8% year-over-year to $1.67 billion, falling short of the $1.73 billion consensus. Organic sales, excluding currency and divestiture impacts, were down 2% for the quarter.
Clorox cited increased economic uncertainty as a key factor behind the results, noting that changes in consumer shopping patterns contributed to slower category performance. The company expects these headwinds to persist into the fourth quarter.
Despite the decline in top-line results, Clorox continued to improve its profitability, marking its tenth consecutive quarter of gross margin expansion. Gross margin rose 240 basis points year-over-year to 44.6%, reflecting progress on cost controls and operational efficiency.
For fiscal 2025, Clorox maintained its adjusted EPS guidance of $6.95 to $7.35 but lowered its organic sales growth forecast to 4–5%, down from a previous range of 5–6%.