Clorox tumbles 12% as the company misses on earnings and projects a post-pandemic decline in demand for cleaning supplies

Clorox wipes
  • Clorox fell as much as 12.1% on Tuesday after the company reported a steep earnings miss and lowered guidance.
  • Sales for the company’s most recent fiscal quarter came in at $1.8 billion, well below sales a year prior and $100 million short of analyst expectations.
  • With the pandemic subsiding, Clorox expects both sales and earnings per share to fall as consumers pull back on buying cleaning supplies.
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Clorox fell as much as 12.1% on Tuesday after the company reported a steep earnings miss and revised down its guidance amid a post-pandemic decline in demand for cleaning supplies.

The stock fell briefly below $160 before paring back some of its losses later in the day. Clorox had been trading near $180 on Monday before the pre-market earnings announcement.

“As we head into fiscal year 2022, we’re laser focused on operational execution, rebuilding our margins, and driving market share improvements in this dynamic environment,” CEO Linda Rendle said in a statement.

Sales for the company’s most recent fiscal quarter came in at $1.8 billion, well below sales a year prior and $100 million short of analyst expectations. Adjusted earnings per share were at 95 cents, versus an expected $1.32.

The weak quarterly performance was accompanied by pessimistic guidance for the coming fiscal years. With the pandemic subsiding, Clorox expects both sales and EPS to fall as consumers pull back on buying cleaning supplies.

Still, the company announced $500 million over five years in fresh investment, with a focus on building out its digital channels and cutting costs. Clorox has nearly doubled its e-commerce business in the last two years, though it is still in the early stages, Rendle said.

Clorox closed at $164.30 on Tuesday, down 9.3% on the day.

Read the original article on Business Insider