Clorox Beats EPS Despite ERP Disruption

Clorox reported roughly $1.43 billion in fiscal first-quarter revenue, down about 19% year‑over‑year as shipments were disrupted by a recent ERP transition that increased manufacturing and logistics costs. Gross profit fell to about $596 million (down ~26%) and gross margin declined roughly 410 basis points to 41.7%; operating income dropped to about $107 million from $177 million a year earlier, and net income fell to about $80 million from $99 million. GAAP EPS was $0.65 while non‑GAAP (adjusted) EPS was $0.85, topping Street estimates, and operating margin compressed to roughly 7.5% from 17.4%. Management reiterated full‑year adjusted EPS guidance (about a $6.13 midpoint), framed the ERP launch as a long‑term transformation that caused temporary disruptions, and warned of a volatile near‑term operating environment. All four reportable segments saw sales and volume declines, and shares rose modestly in after‑hours trading despite a steep year‑to‑date drop.