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Dec 31, 2024
Clorox Q2 2025 Earnings Report
Clorox reported better-than-expected results in Q2 2025, driven by strong demand creation plans and share growth, while updating its fiscal year 2025 outlook.
Key Takeaways
Clorox's Q2 2025 net sales decreased by 15% to $1.69 billion, while diluted EPS increased by 105% to $1.54 and adjusted EPS decreased by 28% to $1.55. The company has updated its fiscal year 2025 outlook, expecting net sales to be down 1% to up 2% and adjusted EPS to be between $6.95 and $7.35.
Net sales decreased 15% to $1.69 billion, primarily due to lapping the impact of retail inventory restoration following the August 2023 cyberattack and divestitures.
Diluted EPS increased 105% to $1.54, including lapping the pension settlement charge and cyberattack expenses.
Adjusted EPS decreased 28% to $1.55, primarily due to lower net sales, partially offset by cost savings.
Gross margin increased 30 basis points to 43.8%, driven by cost savings and divestiture benefits.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Clorox updated its fiscal year 2025 outlook, expecting net sales to be down 1% to up 2% and adjusted EPS to be between $6.95 and $7.35.
Positive Outlook
- Net sales to be down 1% to up 2%, including 1 to 2 points of benefit from incremental shipments related to the Enterprise Resource Planning (ERP) transition.
- Organic sales are now expected to be up 4% to up 7%, excluding about 2 points of negative impact from the divestiture of the company's business in Argentina and about 3 points of negative impact from the divestiture of the VMS business.
- Gross margin is now expected to be up 125 to 150 basis points, primarily due to the benefits of holistic margin management efforts.
- Fiscal year diluted EPS is now expected to be between $5.52 and $5.92, a year over year increase of 145% to 163%, respectively.
- Adjusted EPS is now expected to be between $6.95 and $7.35, a year over year increase of 13% to 19%, respectively.
Challenges Ahead
- The company now expects net sales to be down 1% to up 2%.
- Excluding the incremental shipments related to the ERP transition, the company continues to expect organic sales to be up 3% to 5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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