Key Highlights

  • CLX reported fiscal first-quarter net sales of $1.905 billion, up 33% from $1.429 billion a year earlier.
  • Organic sales growth was 18%, while the GOJO Acquisition added 15 points to reported growth.
  • Diluted EPS rose 114% to $1.39 from $0.65, with net Earnings attributable to Clorox at $170 million.
  • Gross Margin fell 130 basis points to 40.4% on higher commodity, Manufacturing and logistics costs.
  • Management now expects fiscal 2027 input cost Inflation of about $240 million, roughly $40 million above its initial estimate.

Acquisition and Easy Comparison Drive a 33% Sales Jump

Clorox (NYSE:CLX) reported results for the fiscal first quarter ended Sep 30, 2026 on Nov 2, 2026. Net sales reached $1.905 billion against $1.429 billion a year earlier, a gain of 33%. Volume rose 31%, mainly because the prior-year period was depressed by lower shipments after the ERP transition, and because GOJO, the maker of Purell, was acquired on Apr 1, 2026.

Excluding acquisitions and currency, Organic Sales growth was 18% and organic volume grew 17%. The acquisition contributed 15 points to reported growth.

Net earnings attributable to Clorox more than doubled to $170 million from $80 million. Diluted Earnings per Share climbed 114% to $1.39 from $0.65, helped by higher sales, cost savings and an effective tax rate of 16.4% versus 23.4%, which the filing ties to an international Legal entity reorganization.

Health and Wellness Leads Segments as Gross Margin Slips to 40.4%

Health and Wellness net sales rose 62% to $918 million, with the acquisition adding 39 points. Household sales grew 17% to $423 million, Lifestyle gained 16% to $283 million and International advanced 11% to $281 million.

Gross profit was $770 million, up 29%, but gross margin narrowed to 40.4% from 41.7%. Higher commodity, manufacturing and logistics costs outweighed volume gains and cost savings.

Interest expense more than doubled to $52 million from $23 million because of borrowings that funded the acquisition.

Cash Flow, Commercial Paper and the Dividend After the GOJO Purchase

Net cash from operations was $143 million, up from $93 million, and Capital spending was $38 million. The company paid $151 million in dividends and made no share repurchases, compared with $129 million of Buybacks in the prior-year quarter.

Notes and loans payable included about $1.175 billion, mostly commercial paper, issued to fund the acquisition and a venture agreement termination payment. Current liabilities exceeded current Assets by $1.023 billion. The company had $1.964 billion of revolving Credit capacity with no borrowings outstanding.

Outlook Reflects $240 Million Cost Inflation, Pricing Moves and a New CEO in January

Management said fiscal 2027 input cost inflation should reach about $240 million, around 2.5 times the historical annual average, with resin and transportation named as drivers. The plan assumes an average oil price near $100 a barrel per management, and inflation is expected to be heavier in the first half.

Full-year organic sales growth is guided to 3.5% to 4.5%, including about 3.5 points from lapping the ERP transition, which implies flat to 1% growth excluding that effect. Second-quarter organic sales are expected to be flat to down 2%. The company took a high single-digit price increase on Glad trash bags in July and plans further pricing in the second half.

Management also lifted its first-year GOJO earnings view to positive from neutral and sees a path to the full $50 million of cost synergies. The board has named a new chief executive to take over in January. Second-quarter results and the pace of pricing and margin recovery are the next markers.