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Sep 30, 2022
Clorox Q1 2023 Earnings Report
Clorox reported better-than-expected results in a challenging operating environment, reflecting brand strength and strong execution.
Key Takeaways
Clorox's Q1 2023 net sales decreased by 4% to $1.74 billion, with organic sales down 2%. Diluted EPS decreased by 40% to 68 cents, while adjusted EPS decreased by 23% to 93 cents. The company is maintaining its fiscal year 2023 outlook.
Net sales decreased 4% to $1.74 billion.
Diluted EPS decreased 40% to 68 cents.
Adjusted EPS decreased 23% to 93 cents.
Company is maintaining its fiscal year 2023 outlook.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is confirming its fiscal year 2023 outlook with net sales from a 4% decrease to a 2% increase compared to the prior year (organic sales from a 3% decrease to a 3% increase) and adjusted EPS between $3.85 and $4.22.
Positive Outlook
- Gross margin increase of about 200 basis points, primarily due to the combined benefit of pricing, cost savings and supply chain optimization, offset by continued cost inflation.
- Selling and administrative expenses between 15% and 16% of net sales, including about 1.5 points of impact from the company's strategic investments in digital capabilities and productivity enhancements.
- Advertising and sales promotion spending of about 10% of net sales, reflecting the company's ongoing commitment to invest in its brands.
- Effective tax rate of about 24%, with year-over-year increase primarily reflecting lower excess tax benefits from equity compensation.
- Adjusted EPS between $3.85 and $4.22, or a 6% decrease to a 3% increase, respectively.
Challenges Ahead
- Net sales from a 4% decrease to a 2% increase compared to the prior year (organic sales from a 3% decrease to a 3% increase).
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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