The headline beat is largely driven by lapping the ERP inventory drawdown and GOJO acquisition, not organic momentum. Gross margin compression from commodity costs is accelerating (360 bps headwind vs 30 bps a year ago). Monitor the Q2 earnings call for whether cost savings and pricing actions can offset the inflationary pressure to keep adjusted EPS within the maintained range.
Price Chart
Executive Summary
Clorox reported Q1 FY2027 results with net sales of $1.91B (up 33% YoY) and adjusted EPS of $1.55 (up 82% YoY), both above consensus estimates of $1.88B and $1.07. However, gross margin contracted 130 bps to 40.4% due to higher commodity and manufacturing costs, and the company maintained its full-year adjusted EPS guidance range but now expects results closer to the low end, citing higher inflationary pressures.
Key Financial Metrics
Key Facts
- Net sales of $1.905 billion, up 33% YoY, including ~15 points from GOJO acquisition
- Organic sales up 18% YoY, reflecting lapping of ERP inventory drawdown
- GAAP diluted EPS of $1.39 vs $0.65 YoY, up 114%
- Adjusted EPS of $1.55 vs $0.85 YoY, up 82%
- Gross margin declined 130 bps to 40.4% from 41.7%
- Commodity costs drove 360 bps of gross margin headwinds
- FY2027 adjusted EPS guidance maintained at $5.70-$6.00 but expected closer to low end
- FY2027 net sales guidance maintained at 13%-14% growth
- Operating cash flow of $143M vs $93M YoY, up 54%
- All four segments reported positive organic sales growth
Financial Impact
Revenue beat consensus by $25M (1.3%); adjusted EPS beat consensus by $0.48 (44.9%)
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Health and Wellness | $918.0M | +62.0% |
| Household | $423.0M | +17.0% |
| Lifestyle | $283.0M | +16.0% |
| International | $281.0M | +11.0% |
Risk Factors
- Commodity cost inflation accelerating to 360 bps headwind in Q1 vs 30 bps in prior year Q1
- Adjusted EPS guidance maintained but management expects results closer to low end of $5.70-$6.00 range
- Gross margin declined 130 bps to 40.4%, with further compression expected to 41.5% for full year
- GOJO acquisition integration costs of $26M in Q1, with $46M expected for full year
- Higher interest expense of $52M vs $23M in prior year quarter due to acquisition debt
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000021076-26-000044 |
| Exhibit: ex992-supplementalinformat.htm | 0000021076-26-000044 |
| Document: clx-20261102.htm | 0000021076-26-000044 |
| Document: 0000021076-26-000044-index-headers.html | 0000021076-26-000044 |
| Document: 0000021076-26-000044-index.html | 0000021076-26-000044 |
| Document: 0000021076-26-000044.txt | 0000021076-26-000044 |
| 8-K Data (Synthetic) | 0000021076-26-000044 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 2, 2026 2d ago | 8-K | No price | awaiting T+5 | awaiting T+5 | No price |
Nov 2, 2026 2d ago | Press Release | $93.80 | awaiting T+5 | awaiting T+5 | $93.80 (+0.00%) |
Oct 29, 2026 6d ago | DEFA14A | $88.67 | awaiting T+5 | awaiting T+5 | $93.80 (+5.79%) |
Oct 29, 2026 6d ago | 8-K | $88.67 | awaiting T+5 | awaiting T+5 | $93.80 (+5.79%) |
Oct 27, 2026 8d ago | SC 13G/A | $86.84 $99.16 | ▲ +14.19% | ▲ +14.90% | $93.80 (+8.01%) |
Oct 16, 2026 19d ago | Institutional Cluster | $85.56 $86.35 | ▲ +0.92% | ▲ +1.06% | $93.80 (+9.63%) |
Oct 7, 2026 28d ago | DEFA14A | $83.44 $86.20 | ▲ +3.31% | ▲ +3.58% | $93.80 (+12.42%) |
Oct 7, 2026 28d ago | DEF 14A | $83.44 $86.20 | ▼ −3.31% | ▼ −3.58% | $93.80 (−12.42%) |
Sep 23, 2026 6w ago | Press Release | $81.80 $80.65 | ▼ −1.41% | ▼ −0.99% | $93.80 (+14.67%) |
Aug 26, 2026 10w ago | Institutional Cluster | $104.23 $94.27 | ▼ −9.56% | ▼ −9.44% | $93.80 (−10.01%) |
US Market Status
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