Clorox Shares Fall 1.96% as ERP Transition and Macro Headwinds Push Volume to 270th Rank

On August 1, The Clorox Company (CLX) closed at a 1.96% decline with a trading volume of $0.49 billion, ranking 270th in the market. The stock’s performance followed mixed Q4 fiscal 2025 results, where top-line growth fell short of expectations due to macroeconomic headwinds and inventory management challenges tied to an ERP system rollout. CEO Linda Rendle noted weaker-than-expected sales in the fourth quarter, partly attributed to lapping high promotional activity from the prior year and supply chain disruptions post-cyberattack in August 2023.

Management emphasized that the ERP transition caused temporary distortions, including a 3.5–4% annualized sales boost in Q4 due to pre-ordering by retailers. This volatility is expected to normalize by fiscal 2026, with CFO Luc Bellet projecting organic sales growth of -1% to +2% and adjusted EPS growth of 2–4%. Margin pressures from ERP-related costs and inventory destocking were offset by operating leverage gains, though gross margin expansion is anticipated to stabilize at 100 basis points annually post-implementation.

Looking ahead, Clorox plans to leverage its new ERP system to enhance digital capabilities, drive innovation, and improve margin resilience. The company also aims to regain market share through targeted promotions and product innovation, particularly in categories like cleaning and pet care. Analysts remain cautious, with recent price targets cut to $140–$152, reflecting concerns over short-term execution risks and elevated trade spend.

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