Clorox Reports 8% Revenue Decline, Expects Continued Weak Consumer Demand

Clorox reported an 8% drop in quarterly sales to $1.67 billion, missing analysts’ expectations as macroeconomic uncertainty and tariff concerns led to weaker consumer demand and changes in shopping behavior. The company lowered its annual sales outlook, now expecting net sales to range from down 1% to flat, citing continued slowdowns expected into the next quarter. Despite the sales decline, Clorox improved its operating and gross margins, benefited from cost savings and divestitures, and maintained overall market share. CEO Linda Rendle noted that fundamentals remain strong, with confidence in navigating short-term challenges and delivering organic sales and earnings growth. However, limited growth in demand over several years suggests challenges in expanding meaningfully without innovation, price adjustments, or new market entry. Clorox’s performance reflects broader consumer caution, with peers like Procter & Gamble and Colgate-Palmolive raising prices to offset input costs.