Clorox Co. outlined its growth strategy and updated outlook for fiscal 2027 at the Boston Global Staples Conference on Wednesday, projecting modest top-line expansion even as the household-products maker contends with elevated input costs, a CEO transition, and several branded challenges.
The company raised its fiscal 2027 organic sales growth guidance to 3.5% to 4.5%, compared with prior expectations of flat to 2% growth. Chief Financial Officer Luc Bellet attributed approximately 3.5 percentage points of that guidance to lapping the one-time ERP transition from the prior year. Excluding that benefit, underlying organic growth is expected to be flat to slightly up.
Clorox is in the midst of a leadership change. Chair and CEO Linda Rendle announced in May that she will step down, and the board is searching for a successor.
Input cost inflation is running significantly above historical norms. The company now expects inflation to come in at slightly over $200 million for fiscal 2027, well above the $75 million to $100 million range seen over recent years. "The inflation this year is proving out to be much more persistent and extending beyond what just the headline from oil," Bellet said. Tariffs have not yet materially impacted the profit-and-loss statement, he noted, because Clorox produces predominantly in the U.S. with local suppliers.
On the bottom line, fiscal 2026 full-year adjusted EPS came in at $5.53. For fiscal 2027, Clorox estimates an ERP headwind of approximately $0.90 per share. At the midpoint of guidance, that would leave reported EPS roughly $0.60 lower year over year after adjusting for the transition charge.
Shares of Clorox (CLX) were trading at $89.95, down about 24% over the past year and hovering near its 52-week low of $84.70. The stock carries a price-to-earnings ratio of 18.67, a dividend yield of 5.46%, and a market capitalization of $10.9 billion. Gross profit margins held at 42%.
Rendle said the company enters fiscal 2027 "in a much stronger place" than a year ago, but warned that the environment remains tough, with consumers under stress and categories muted.
Fresh Step cat litter continues a multi-year operational rebuild after disruptions from a COVID-era greenfield manufacturing site and a 2023 cyberattack. The company launched a full restage in the fourth quarter, including changes to price-pack architecture, packaging, claims and a lower-dust formulation. "We took a very hard look at our plan knowing that, and we said we needed to do a complete restage of the business," Rendle said.
Hidden Valley, meanwhile, faced a category-wide double-digit drop driven by a Cyclospora outbreak, though the brand gained 2 to 3 share points. The brand is also contending with structural pressure from GLP-1 weight-loss drugs. Rendle said marketing efforts emphasize the brand's versatility: "It's a brand that makes everything taste better, whether that be what you're doing on your GLP-1 journey, or you want to enjoy it on something a little more indulgent, like pizza."
Glad packaging returned to share growth in Q4, aided by a revamped innovation plan, price-pack architecture, revenue-growth management and promotions. Truckload pricing, however, remains elevated and has not yet fully normalized.
The Gojo Industries acquisition, which closed on April 1, adds PURELL to Clorox's portfolio. The brand is a mid-single-digit grower with roughly 80% of revenue coming from business-to-business channels and more than 20 million installed dispensers worldwide.
Rendle described Clorox's cleaning business as the company's strongest and most consistent performer, noting that it has expanded well beyond bleach into sprays, wipes and the Scentiva scent platform launched in 2018.
