Clorox expects a tough year ahead, with consumers focusing on value and inflation more than offsetting recent cost savings.
The maker of cleaning products and other household goods on Monday said it expects sales to rise between 13% and 14% for the current fiscal year, with most of that growth coming from its recent acquisition of Purell-maker Gojo. On an adjusted basis, it expects per share earnings between $5.70 and $6.00
Analysts polled by Factset were looking for adjusted earnings of $5.93 and sales to rise about 13.5%.
"We expect the operating environment to remain challenging, with continued cost volatility and a value-seeking consumer," Chief Executive Linda Rendle said.
One factor playing into the forecast is inflation, which the company expects to be higher than normal.
The forecast came after the company reported net income of $163 million, or $1.34 a share, for its fiscal fourth-quarter ended June 30, compared with $332 million, or $2.68 a share, a year earlier.
Adjusted earnings per share were $1.66. Analysts polled by FactSet expected $1.64.
Revenue fell 2% to $1.95 billion. Analysts polled by FactSet expected $1.91 billion.
Sales fell 13% on an organic basis, which included the impact from recent modernization of its U.S. systems that prompted retailers to increase orders in the year-ago period.
Rendle said that fourth-quarter results were in-line with the company expectations.
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