The Clorox Company

Clorox did not state full-quarter revenue, EPS, or gross margin results in the prepared remarks and Q&A shown here. For fiscal 2027, management guided to organic sales that are flat to slightly up, reiterated a gross margin target around 42%, and said inflation should be above $200 million, more than double the historical $75 million to $100 million range. Luc Bellet also said free cash flow should remain in the company’s targeted 11% to 13% of sales range, SG&A should improve on a comparable basis, and interest expense is about $210 million. On the GOJO acquisition, Bellet said the business was accretive in Q4, expected to be accretive to adjusted EPS next fiscal year, and should run at mid-single-digit growth with potential to move to mid- to high-single digits as synergies build.

Linda Rendle framed fiscal 2026 as a year of urgent execution in a difficult environment marked by value-seeking consumers, competition, inflation, and macro uncertainty. Her tone was constructive and disciplined: she emphasized superiority, targeted reinvestment, and a stronger foundation for fiscal 2027, while saying the company is making sequential progress even if some businesses still need work. She also stressed that Clorox will continue to review the portfolio carefully, but there is nothing to announce yet.

Luc Bellet focused on inflation, margins, cash flow, and capital structure. He said fiscal 2027 inflation is expected to be above $200 million, with Brent crude assumed at about $90 per barrel and additional pressure from supplier costs, ocean freight, trucking, and logistics; he also noted the impact should be more pronounced in the first half. He said free cash flow should stay in the 11% to 13% of sales range, helped by working capital discipline, GOJO’s stable cash generation, and expected tax benefits. On SG&A, he said comparable productivity should exceed inflation next year, and on interest expense he said it is about $210 million.

Analysts pressed on the flat-to-slightly-up sales outlook, asking how much of the improvement comes from share gains versus easing timing issues. Management said Q1 is mainly a timing blip from Kingsford and some promotional shifts, and that the back half of the year should look more like fiscal 2026 trends, with share improvement continuing. Questions also focused on pricing, promotions, and whether the company has pricing power; management said pricing will be targeted rather than broad, with Glad getting a straight price increase and other categories using price pack architecture, promotions, and product improvements. Analysts also asked about GOJO, portfolio trimming, dividend policy, ERP savings, and the CEO search; management said GOJO is ahead of plan, the dividend remains supported, ERP benefits should ramp later this year and next, and the CEO search is progressing as expected.