The Clorox Company Q1 2027 Earnings Recap

Clorox shares rose 4.3% after the company said first-quarter results were better than expected and maintained a path to modest underlying sales growth. The outlook still points to flat-to-slightly positive organic sales growth excluding the ERP benefit, with higher-than-expected input costs weighing on margins.

Key Takeaways

• Fiscal-year organic sales growth is forecast at 3.5%–4.5%, including about 3.5 percentage points from lapping the ERP transition; excluding ERP, the outlook is flat to +1%.
• Underlying organic sales growth is expected to be slightly negative in the first half and slightly positive in the second half. Retail consumption is projected to be flat in the first half and up slightly in the second.
• Expected fiscal-year input cost inflation rose by about $40 million from the start-of-year estimate to approximately $240 million, around 2.5 times the historical annual average.
• Cost pressure extends beyond oil to resin, other commodities, supplier costs, and transportation. Management assumes an average Brent price of about $100 and expects inflation to be more pronounced in the first half.
• Clorox cited consumer value-seeking and elevated competitive activity as ongoing challenges, while saying mitigation actions should build in the second half.