Clorox Co. stock plunged the most in more than two decades after forecasting a decline in sales. Chief Executive Officer Linda Rendle took an all-in gamble that the maker of disinfecting wipes and bleach would hang on to the pandemic-driven customers it picked up over the last year.
The company, which also sells Glad trash bags and Kingsford charcoal, posted sales of $1.8 billion in its fiscal fourth quarter, below the lowest analyst estimate. Clorox expects organic sales to decline by 2% to 6% in the current fiscal year, with uncertain consumer demand central to the desired performance.
On Tuesday, the stock fell 10% and was down as much as 12% earlier, the most significant drop since 2000. The shares had already declined 10% in 2021 through Monday’s close.
The company said falling sales were due primarily to the deceleration of shipments from peak levels during the Covid-19 pandemic and a faster than expected slowdown in the health and wellness segment, including cleaning products. That slowdown is also caused by a surge in costs for freight and raw materials.
Clorox reported sales decreases in all but one segment. The most significant decline was 17% at the health and wellness unit. Household products, which include trash bags, charcoal, and cat litter, also fell by 8%, with the company citing “moderating consumer demand.” In the lifestyle segment, which includes Hidden Valley salad dressing and Brita water filters, revenue dropped 3% on the same trend.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
equities, trading conditions, trading indicator, fundamental analysis