NYSE$CLX

Clorox Co · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

Clorox reported better-than-expected results in Q2 2025, driven by strong demand creation plans and share growth, while updating its fiscal year 2025 outlook.

Clorox's Q2 2025 net sales decreased by 15% to $1.69 billion, while diluted EPS increased by 105% to $1.54 and adjusted EPS decreased by 28% to $1.55. The company has updated its fiscal year 2025 outlook, expecting net sales to be down 1% to up 2% and adjusted EPS to be between $6.95 and $7.35.

  • Net sales decreased 15% to $1.69 billion, primarily due to lapping the impact of retail inventory restoration following the August 2023 cyberattack and divestitures.
  • Diluted EPS increased 105% to $1.54, including lapping the pension settlement charge and cyberattack expenses.
  • Adjusted EPS decreased 28% to $1.55, primarily due to lower net sales, partially offset by cost savings.
  • Gross margin increased 30 basis points to 43.8%, driven by cost savings and divestiture benefits.

Headline financials

Total Revenue

$1.69B

Previous: $1.99B-15.3%
EPS (adj)

$1.55

Previous: $0.75+106.7%
Gross Margin

43.8%

No prior period
Adjusted EBIT

$258M

No prior period
Year-to-date Net Cash from Operations

$401M

No prior period
Capital Expenditures

-$92M

Previous: -$76M-21.1%
Net Income

$194M

Previous: $93M+108.6%
Operating Income

$237M

Previous: $500M-52.6%
Gross Profit

$738M

Previous: $866M-14.8%
Stock-Based Comp

$27M

Previous: $16M+68.8%

Revenue & EPS history

Clorox · Revenue · Quarterly

$1.69B

Q2 2025-15.3%vs Q2 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clorox · $824M total across 3 segments · Q1 2024

  • Household
    $325M-23.2%
  • International
    $270M-5.3%
  • Lifestyle
    $229M-28.4%

Forward guidance

Clorox updated its fiscal year 2025 outlook, expecting net sales to be down 1% to up 2% and adjusted EPS to be between $6.95 and $7.35.

Tailwinds

  • Net sales to be down 1% to up 2%, including 1 to 2 points of benefit from incremental shipments related to the Enterprise Resource Planning (ERP) transition.
  • Organic sales are now expected to be up 4% to up 7%, excluding about 2 points of negative impact from the divestiture of the company's business in Argentina and about 3 points of negative impact from the divestiture of the VMS business.
  • Gross margin is now expected to be up 125 to 150 basis points, primarily due to the benefits of holistic margin management efforts.
  • Fiscal year diluted EPS is now expected to be between $5.52 and $5.92, a year over year increase of 145% to 163%, respectively.
  • Adjusted EPS is now expected to be between $6.95 and $7.35, a year over year increase of 13% to 19%, respectively.

Headwinds

  • The company now expects net sales to be down 1% to up 2%.
  • Excluding the incremental shipments related to the ERP transition, the company continues to expect organic sales to be up 3% to 5%.
  • Gross margin is partially offset by cost inflation and higher trade promotion spending.
  • Effective tax rate is now expected to be about 26%.
  • Includes the profit from incremental shipments related to the ERP transition of 25 cents to 45 cents, which is expected to reverse in the front half of fiscal year 2026.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

+0.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.0%

Avg return

30 days after

55%

39 / 71 earnings

Positive

+9.5%

Q4 2023

Best reaction

-15.3%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.5%-6.7%-6.6%
Q2 2026+4.6%+4.0%-0.3%
Q1 2026+1.1%-1.6%-3.7%
Q3 2025-2.4%-2.6%-8.0%
Q2 2025-7.2%-7.1%-7.1%
Q1 2025+1.1%+3.6%+6.6%
Q4 2024+9.2%+8.6%+20.0%
Q3 2024-6.2%-7.2%-13.4%
Q2 2024+7.6%+6.6%+4.7%
Q1 2024+4.5%+9.6%+22.2%
Q4 2023+9.5%+7.9%+2.3%
Q3 2023+5.1%+1.5%-5.1%
Q2 2023+7.2%+5.0%+7.9%
Q1 2023-5.7%-3.7%+2.6%
Q4 2022-4.2%+0.5%-0.7%
Q3 2022+2.9%+7.3%-1.9%
Q2 2022-15.3%-14.2%-13.3%
Q1 2022+1.5%+0.2%+1.7%
Q4 2021-8.6%-10.3%-6.2%
Q3 2021-2.9%-1.0%-5.0%
Q2 2021-6.5%-8.4%-9.9%
Q1 2021+2.4%+5.2%-2.7%
Q4 2020+0.5%+0.4%-5.4%
Q3 2020+6.9%+7.2%+10.6%
Q2 2020+6.1%+6.7%+12.8%
Q1 2020-2.5%-2.0%-1.7%
Q4 2019-3.5%-5.1%-2.7%
Q3 2019-6.9%-7.2%-6.8%
Q2 2019+1.9%+3.9%+4.7%
Q1 2019+0.6%+2.7%+8.4%
Q4 2018+6.6%+5.5%+8.1%
Q3 2018+1.4%+3.4%+3.1%
Q2 2018-9.5%-8.9%-6.7%
Q1 2018+2.2%+0.9%+10.4%
Q4 2017+1.9%+2.0%+4.6%
Q3 2017+1.7%+1.4%+5.0%
Q2 2017+2.9%+5.7%+13.9%
Q1 2017-4.0%-4.4%-4.6%
Q4 2016+2.8%+1.4%+1.3%
Q3 2016+1.8%
Q2 2016-5.1%
Q1 2016+2.2%
Q4 2015+4.4%
Q3 2015+0.4%
Q2 2015+0.3%
Q1 2015+1.2%
Q4 2014-0.6%
Q3 2014-1.2%
Q2 2014-2.1%
Q1 2014-0.6%
Q4 2013-0.7%
Q3 2013-0.5%
Q2 2013+1.0%
Q1 2013+1.0%
Q4 2012-0.6%
Q3 2012-4.3%
Q2 2012+1.0%
Q1 2012-2.9%
Q4 2011+4.1%
Q3 2011+1.4%
Q2 2011+1.3%
Q1 2011-2.2%
Q4 2010+0.4%
Q4 2008+0.4%
Q3 2010-1.5%
Q3 2009-1.5%
Q2 2010-0.1%
Q2 2009-0.1%
Q1 2009-0.9%
Q4 2009-0.9%
Q1 2010-0.9%

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