The Clorox Company (NYSE: CLX) reported financial results for the first quarter of fiscal year 2027, which ended September 30, 2026. The company reported net sales of $1.91 billion for the quarter, representing a 33% increase compared to the same period in the prior year. This growth was primarily driven by the GOJO acquisition, which contributed approximately 15 percentage points to sales growth, and organic sales growth of 18%. The filing notes that the organic sales increase reflects the impact of lapping an ERP transition-related inventory drawdown in the year-ago quarter.
On a GAAP basis, diluted earnings per share (EPS) increased 114% to $1.39 from $0.65 in the prior year. Adjusted EPS, a non-GAAP measure, increased 82% to $1.55 from $0.85. The company attributed the adjusted EPS growth to higher net sales, cost savings, and a lower tax rate, partially offset by higher commodity and manufacturing costs. Gross margin decreased by 130 basis points to 40.4% due to higher input costs and logistics expenses, though this was partially offset by higher volume and cost savings.
Clorox updated its fiscal year 2027 outlook, maintaining its sales and adjusted EPS ranges. The company now expects net sales to increase 13% to 14% year-over-year, including approximately 9.5 points from the GOJO acquisition. Organic sales are expected to grow 3.5% to 4.5%. The company revised its gross margin expectation to approximately 41.5%, citing higher-than-normal inflationary headwinds and negative mix. Diluted EPS is expected to be between $5.41 and $5.71, while Adjusted EPS is expected to be between $5.70 and $6.00.
Strategically, Clorox officially launched Clorox Purell ProCare, integrating GOJO with CloroxPro to serve professional and healthcare customers. The company also highlighted investments in consumer innovation, including new Burt’s Bees lip balms and seasonal Glad and Pine-Sol offerings. The company reported year-to-date net cash provided by operations of $143 million, a 54% increase compared to the prior year.
