Clorox Forecasts Boost in Annual Sales as Supply Chain Recovery Progresses
Clorox Co. has raised its full-year sales and profit forecasts, citing improved operational stability following significant disruptions from a 2023 cyberattack that impacted its manufacturing and shipping capabilities.
The consumer products giant now expects annual net sales to grow between 2% and 4%, a notable reversal from its earlier prediction of a decline of up to 1%. Organic sales, which exclude the effects of foreign exchange and acquisitions, are also projected to climb 2% to 4%, up from a prior range of flat to 2% growth. Fiscal earnings per share are forecasted to reach between $5.15 and $5.35, higher than the previous outlook of $4.30 to $4.50 per share.
The improved outlook comes as Clorox’s supply chain continues to recover from the cyberattack in August 2023 that forced weeks of manual operations and large-scale disruptions. CEO Linda Rendle noted that while the company has not yet returned to pre-attack service levels in all areas, the recovery is progressing at pace. Inventory and supply chain stability have shown measurable improvements, supporting better service to retail partners.
In the fiscal third quarter, Clorox reported a 36% rise in net income year-over-year, reaching $163 million. However, due to ongoing product shortages early in the quarter, overall sales declined 5% to $1.81 billion. Gross margin rose to 43.7%, a significant improvement from 37.1% the year prior, bolstered by cost reductions and price increases across key categories including cleaning and household products.
The cleaning segment, which includes category-leading brands like Clorox and Pine-Sol, posted a 3% sales decline. Household product sales dropped by 13%. Despite these declines, the company remains confident in its pricing strategy and margin discipline, signaling continued focus on balancing volume with profitability.
For FMCG stakeholders, Clorox’s revised guidance underscores a broader trend of supply chain resilience and the critical role of digital infrastructure in safeguarding operations. With its core brands regaining shelf presence, the company is poised for a stronger close to its fiscal year and is positioning itself to regain market share lost during the disruption.