Clorox Company (the) Stock Earnings Reports

Clorox reported a Q1 marked by the successful U.S. ERP launch that created temporary fulfillment and inventory disruptions but is now mostly behind them. Management adjusted FY26 guidance to incorporate ERP-related timing effects and expects front-half organic sales to be down low single digits (ex-ERP noise) with a return to low single-digit organic growth in the back half driven by innovation, demand-creation investments and lapping tougher comparisons. Category growth is expected to remain muted (roughly 0–1% for U.S. retail), inflation is moderating versus earlier expectations (input cost inflation now seen ~ $70M vs. ~$90M assumed in July), but tariffs remain a ~$40M headwind. Gross margin pressure in Q1 reflected operational deleverage from the ERP roll-out and incremental trade/advertising to support back-half innovation, leaving near-term margin guidance toward the lower end of the range but with anticipated gross margin expansion in Q3–Q4. Management says customer fill rates and retailer inventories have largely been restored, household penetration for major brands remains stable (some up), and the company is focused on executing a sharpened demand-creation plan and targeted price/pack architecture to capture value-seeking consumers while protecting long-term brand economics.