By Kelly Cloonan
Clorox posted lower revenue in its latest quarter as macroeconomic uncertainty led consumers to pull back on shopping, a trend it expects to continue.
The cleaning-product maker updated its fiscal 2025 guidance due to "recent changes in the macroeconomic and geopolitical environment" and includes the impact of tariffs.
"In the third quarter, heightened macroeconomic uncertainties drove changes in shopping behaviors, resulting in temporary category slowdowns and lower sales," Chief Executive Linda Rendle said, adding she expects the slowdowns to continue in the fiscal fourth quarter.
The cleaning-product maker on Monday said it swung to a profit of $186 million, or $1.50 a share, for its fiscal third quarter ended March 31, compared with a loss of $51 million, or 41 cents a share, a year earlier.
Clorox said its results were helped by a benefit related to cyberattack insurance recoveries and a loss relating to the divestiture of its Argentina business in the year-ago quarter.
Adjusted earnings were $1.45 a share. Analysts polled by FactSet expected $1.55 a share.
Revenue fell 8% to $1.67 billion, with organic sales down 2%. Analysts expected quarterly sales of $1.72 billion.
Clorox's divestitures in its Better Health Vitamins, Minerals and Supplements and Argentina businesses drove its decline in net sales, while unfavorable price mix hurt organic sales, the company said.
The company had an 11% sales drop in household products, a 3% fall in lifestyle products and a 3% rise in health and wellness. International sales fell 15% in the quarter.
For fiscal 2025, Clorox guided for sales down 1% to flat, compared to its previous outlook of down 1% to up 2%. On an organic basis, the company guided for sales growth of 4% to 5%, compared to prior guidance for growth of 4% to 7%.
It now expects full-year earnings of $5.73 and $6.13, up from a prior range of $5.52 to $5.92. However, the company maintained its previous guidance for adjusted earnings of $6.95 to $7.35.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
May 05, 2025 16:31 ET (20:31 GMT)
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