Clorox Sees Sales Surge After Cyber Attack


In its fiscal second quarter, Clorox reported a significant increase in sales as the company rebounded from a cyber attack that caused product shortages. As a result, Clorox has raised its sales and earnings outlook for the year.

Strong Financial Performance

For the fiscal second quarter ending on December 31, Clorox recorded a net profit of $93 million, or 75 cents per share. This is compared to $99 million, or 80 cents per share, for the same period the previous year. However, when excluding one-time items, the company’s earnings per share reached an impressive $2.16. This exceeds analysts’ expectations of adjusted earnings per share at $1.09.

Furthermore, Clorox experienced a sales surge of 16%, reaching $1.99 billion. This was driven by higher volumes across their product categories. Analysts had predicted lower sales of $1.80 billion.

Improving Gross Margin

Clorox’s gross margin also improved significantly, rising to 43.5% from 38.4% in the prior quarter. This increase can be attributed to pricing and cost-saving initiatives implemented by the company.

“We are rebuilding retailer inventories ahead of schedule, enabling us to return to merchandising and restore distribution,” said Chief Executive Linda Rendle.

Positive Outlook

Clorox has revised its sales outlook for the year ending in June. The company now expects sales to only decline by low to single digits, which is an improvement from their previous guidance for sales to decline by mid-to-high single digits.

Additionally, Clorox has raised its full-year earnings per share outlook to a range of $3.06 to $3.26, up from $2.10 to $2.60 previously. They also anticipate a 200 basis points increase in their gross margin for the full year.

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