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Sep 30, 2021
Clorox Q1 2022 Earnings Report
Clorox's first quarter results for fiscal year 2022 were reported, showing a decrease in net sales and earnings per share.
Key Takeaways
Clorox reported a 6% decrease in net sales to $1.8 billion and a 65% decrease in diluted EPS to $1.14. The company is managing inflationary pressures through pricing actions and cost reduction initiatives and is on track to meet its fiscal 2022 outlook.
Net sales declined 6% to $1.8 billion.
Diluted EPS decreased 65% to $1.14.
Gross margin decreased to 37% from 48%.
The company is taking pricing actions to mitigate inflationary headwinds.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is confirming its fiscal year 2022 outlook, with an expected net sales decline of 2% to 6% and adjusted EPS between $5.40 and $5.70.
Positive Outlook
- Sales expected to return to the lower end of its long-term sales growth target of 3% to 5% in the second half of the fiscal year.
- Advertising and sales promotion spending at about 10% of net sales.
- Commitment to invest behind its brands.
- Strategic investments in digital capabilities and productivity enhancements.
- Effective tax rate between 22% and 23%.
Challenges Ahead
- Net sales decline of 2% to 6%.
- Organic sales decline of 2% to 6%.
- High single-digit sales decline expected in the first half.
- Gross margin decline of 300 to 400 basis points.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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