Clorox on Monday raised its full-year sales outlook, saying it now expects 2027 net sales to climb between 13% and 14%, a pace that exceeds the 12.8% increase analysts had modeled. Management attributed the stronger top-line trajectory to healthier demand in its health and wellness categories and improved interest from international customers, even as the broader economy remains uncertain.
Executives pointed to persistent consumer buying of essential household goods as a tailwind. Shoppers continued to replenish items such as surface cleaners, disinfectants and paper napkins, supporting revenue for brands in Clorox's portfolio.
For the quarter ended June 30, Clorox recorded sales of $1.95 billion, a 2% decline from the year-earlier period but above analysts' consensus of $1.90 billion. On an adjusted basis, the company reported quarterly earnings of $1.66 per share, narrowly topping the $1.65-per-share estimate.
Despite the revenue beat and the raised sales outlook, profitability showed pressure. The company's quarterly gross margin contracted by 520 basis points to 41.3%, a material margin compression that management flagged alongside broader cost volatility. CEO Linda Rendle cautioned that the operating environment is expected to remain challenging, emphasizing ongoing cost swings and a consumer base that remains price-conscious.
Clorox reaffirmed guidance for adjusted earnings per share for fiscal 2027 in a range of $5.70 to $6.00, versus the analysts' consensus of $5.97 per share. The company is also expanding its presence in health and hygiene following its April acquisition of GOJO Industries, the maker of Purell, which it purchased for $2.25 billion.
Taken together, the results and updated forecasts paint a picture of a company benefiting from resilient demand for essential cleaning and hygiene products while navigating margin pressure and a cautious consumer. The numbers underline a mixed near-term outlook: sales momentum has improved, but cost dynamics and value-seeking behavior among shoppers present ongoing headwinds.