How Investors Are Reacting To Clorox (CLX) Weak Sales and Reaffirmed Cautious Outlook

The Clorox Company recently reported first-quarter earnings showing a drop in sales to US$1,429 million and a decrease in net income to US$80 million compared to the same period last year. The company reaffirmed its cautious full-year guidance, highlighting lower expected net sales and earnings largely due to lingering impacts from last year’s ERP system transition and the divestiture of its VMS business. We’ll examine how Clorox’s reaffirmed cautious outlook and weaker quarterly performance may influence its long-term investment narrative.

Outshine the giants: these 25 early-stage AI stocks could fund your retirement.

Clorox Investment Narrative Recap

To be a shareholder in Clorox right now, you need to believe in the company's ability to recover from operational disruptions and reignite organic growth through brand strength, innovation, and improved efficiency. The recent drop in sales and reaffirmed subdued outlook highlight that the biggest short-term catalyst, benefits from the ERP upgrade, is still overshadowed by transition challenges, while persistent category softness and margin pressure remain the top risks. This quarter’s results do not materially change those dynamics, but they reinforce the uncertainty around when performance will normalize.

Among the recent developments, Clorox's confirmation of its guidance for a 6% to 10% decline in full-year net sales is most relevant. The guidance reflects headwinds from the lingering ERP transition and business divestiture, underscoring that investors should pay close attention to how swiftly operational stability and top-line momentum can be restored.

By contrast, ongoing price competition and deep discounting in key categories is a material threat investors should be aware of if…

Read the full narrative on Clorox (it's free!)

Clorox is projected to reach $7.0 billion in revenue and $881.8 million in earnings by 2028. This outlook assumes a 0.4% annual decline in revenue and a $71.8 million increase in earnings from the current $810.0 million level.

Uncover how Clorox's forecasts yield a $124.76 fair value, a 19% upside to its current price.

Exploring Other PerspectivesCLX Community Fair Values as at Nov 2025

Six individual fair value estimates from the Simply Wall St Community range from US$98.22 to US$213.56. Amid such diversity, remember that category softness and sustained discounting could weigh on Clorox’s recovery as you consider these differing viewpoints.

Explore 6 other fair value estimates on Clorox - why the stock might be worth 6% less than the current price!

Build Your Own Clorox Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

Story Continues

A great starting point for your Clorox research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Clorox research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Clorox's overall financial health at a glance.

Ready For A Different Approach?

Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 37 best rare earth metal stocks of the very few that mine this essential strategic resource. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CLX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

View Comments