OAKLAND, Calif., May 2, 2026, 09:02 PDT
- Clorox trimmed its fiscal 2026 adjusted earnings outlook, citing increased costs, sluggish recovery in a few business categories, and expenses related to the GOJO acquisition.
- The stock finished Friday at $87.11, down 9.7%. Several Wall Street firms slashed their price targets following the update.
- The warning comes while other consumer-goods companies grapple with similar pressures from oil, freight, and raw materials, and shoppers remain price-sensitive.
Clorox shares dropped 9.7% to $87.11 Friday, after the household-products company pared back its profit forecast for the year. The move is the latest blow for Clorox, which is still contending with elevated supply-chain expenses and lagging market-share gains in some segments.
Timing is key here: Clorox is working to regain its footing while the rest of the consumer-staples sector weighs how much of the rising costs they can actually push onto buyers. On Friday, Colgate-Palmolive flagged roughly $300 million in extra expenses tied to raw materials and logistics. Unilever, for its part, said Thursday it plans to hike prices “in small doses” to try to counter those climbing costs. Reuters
Clorox is dialing back its guidance for fiscal 2026, projecting adjusted earnings per share between $5.45 and $5.65, compared with its earlier estimate of $5.95 to $6.30. Net sales look set to drop around 6%. The company is also forecasting a 9% slide in organic sales, a figure that leaves out impacts from acquisitions, divestitures, and currency changes.
Net sales for the third quarter came in at $1.67 billion, holding steady versus the same period last year. Diluted EPS ticked up to $1.54 from $1.50. Gross margin, though, slipped by 140 basis points to 43.2%; a basis point equals one-hundredth of a percentage point.
Linda Rendle, the chief executive, described the quarter as “mixed,” pointing to gains in parts of the portfolio but noted market share recovery lagged expectations. Rendle acknowledged Clorox faces a tough consumer environment and ongoing cost pressures, saying there’s “more work to do.” The Clorox Company Investors
Clorox flagged that part of the slump is its own doing. The company said retailers loaded up on inventory ahead of its ERP transition—a sweeping software overhaul affecting everything from ordering to finance. Now, as those stockpiles get worked down, Clorox expects fiscal 2026 sales growth to take a roughly 7.5-point hit, with earnings down about 90 cents per share.
Performance across segments varied. Health and Wellness didn’t move, Household edged up 3%, while Lifestyle dropped 9%. International, on the other hand, climbed 8%, thanks to both currency tailwinds and more volume. The company blamed the Lifestyle setback on weaker consumption and retailers trimming inventories.
Clorox wrapped up its GOJO Industries purchase on April 1, bringing Purell under its roof—a move that scales up its hygiene segment, though it comes with some upfront costs. The company expects GOJO to contribute just under 3 percentage points to fiscal 2026 sales while shaving 2 to 4 cents off adjusted earnings per share. Chief Financial Officer Luc Bellet told investors GOJO brings in roughly $800 million in sales each year, with about $200 million falling in the fourth quarter.
The balance sheet has entered the spotlight. According to a quarterly filing, Clorox tapped $1.25 billion from a delayed-draw term credit agreement after March 31, funding the GOJO deal. The company wants to replace a slice of that with long-term debt. Clorox also submitted an automatic shelf registration for senior debt securities, keeping the door open for future sales.
Analysts wasted no time slashing targets. Evercore ISI’s Javier Escalante stuck with Underperform, trimming his price goal to $110, down from $115. Wells Fargo’s Chris Carey dropped his target to $100 from $110. J.P. Morgan’s Andrea Teixeira took hers down to $95 from $99. Citi’s Filippo Falorni also moved to $97 from $110.
Still, Clorox’s reset may not be enough. Oil-tied expenses, freight charges, or lingering ERP headaches could stick around, forcing the company to push prices up again or slash more costs. Either move risks hitting volumes if shoppers opt for less expensive alternatives.
At this point, the company’s challenges aren’t coming from just one direction. Execution issues, cost pressures, leverage tied to GOJO, plus a consumer base still focused on value—all of it’s in play. Next quarter? The real question isn’t simply bleach sales. It’s whether Clorox can defend its margins and keep shelf space moving.
