Clorox projected a difficult fiscal year 2027 on Monday, warning that inflation and consumers focused on value would offset recent cost savings.
The Oakland, California-based company expects net sales to rise 13% to 14% for the current fiscal year, with roughly 9.5 percentage points of that growth coming from its acquisition of GOJO Industries, the maker of Purell hand sanitizer
On an adjusted basis, Clorox forecast earnings per share of $5.70 to $6.00 for fiscal 2027, representing growth of 3% to 8% over the prior year. Diluted earnings per share on a GAAP basis are expected to land between $5.41 and $5.71. “We expect the operating environment to remain challenging, with continued cost volatility and a value-seeking consumer,” Chair and CEO Linda Rendle said in a statement. Gross margin for fiscal 2027 is expected to come in at roughly 42%, as higher-than-normal inflationary headwinds and unfavorable product mix are projected to more than offset cost savings, the company said.
The forecast followed fourth-quarter results that Clorox described as in line with its expectations. For the quarter ended June 30, the company earned $163 million, or $1.34 per diluted share, down from $332 million, or $2.68 per share, in the same period a year ago. Revenue fell 2% to $1.95 billion.