The Clorox Company Stock Earnings Reports

Clorox reported a mixed Q3 performance amid a deteriorating macro backdrop that weakened consumer sentiment and drove volatile shopping behavior in late Q3 and April. Management stressed that core fundamentals remain strong: market shares were largely maintained, gross margin expanded for the 10th consecutive quarter, and the company remains focused on reinvesting in brands, innovation and its transformation efforts (including an ERP rollout). The near-term outlook was lowered to reflect softer category demand, late-quarter retailer inventory adjustments (primarily in the Household segment), and the emerging impact of recently announced tariffs. Management expects consumers and retailers to remain under pressure in the near term, and embedded assumptions in the Q4 outlook include retailer inventory builds for the ERP transition and tariff passthrough that will phase in as current inventory turns. Key financial implications: tariffs represent an unmitigated ~ $100 million 12-month run rate impact (with $10–$20 million expected to hit in Q4 as inventory turns), ERP-related retailer inventory timing will boost Q4 sales but will largely reverse in the first half of fiscal ’26, and gross margin for Q4 is expected to be roughly in line with the full-year average (around mid-40% range) after timing shifts and tariff effects. Management reiterated confidence in delivering organic sales growth and another year of strong earnings growth for fiscal ’25 while continuing margin expansion over the medium term via productivity, price/pack architecture, targeted pricing and other mitigation actions.