Clorox (NYSE:CLX) delivered better-than-anticipated second-quarter results and boosted its full-year earnings guidance, despite a double-digit drop in sales tied to post-cyberattack recovery comparisons. However, shares of the household products giant fell 3% in pre-market today.
For the quarter, Clorox posted adjusted earnings per share of $1.55, surpassing analyst expectations of $1.39. Revenue reached $1.69 billion, exceeding the $1.63 billion consensus estimate, but reflecting a 15% year-over-year decline.
The revenue drop stemmed from the waning impact of last year’s inventory replenishment efforts following the August 2023 cyberattack, along with recent divestitures. Excluding the impact of asset sales, organic revenue declined 9%.
Despite lower sales, Clorox continued to strengthen its profitability, with gross margins rising by 30 basis points to 43.8%, marking the ninth consecutive quarter of margin expansion. This improvement was driven by cost-saving initiatives and strategic divestitures.
Looking ahead, the company raised its fiscal 2025 adjusted EPS forecast to a range of $6.95 to $7.35, up from the previous $6.65 to $6.90 projection, and ahead of analysts’ $6.87 estimate. Meanwhile, Clorox expects full-year revenue to land between a 1% decline and a 2% increase, reflecting more stability in its operations.