Clorox Q1 FY2027: sales up 33%, margins down, guidance to low end
Clorox's headline 33% sales growth is mostly bought and borrowed: about 15 points from the GOJO acquisition and roughly 18 points from lapping last year's ERP-driven inventory drawdown. Underneath, gross margin fell to 40.4% and management now points adjusted EPS to the low end of its range. Our view is Bearish: the top line looks strong while the profit engine keeps thinning.
1 · Expected vs. Actual
Free preview belowGAAP EPS jumped 114% to $1.39 and adjusted EPS rose 82% to $1.55, but the release says the adjusted growth rate reflects about 90 cents of lap from the year-ago ERP inventory drawdown. Adjusted figures also add back $0.16 per share of GOJO acquisition and integration costs. Against a $0.85 base, this was not an 82% earnings quarter in any operating sense.
Net sales rose 33% to $1.91 billion from $1.43 billion, but about 15 points came from GOJO, and the 18% organic gain is almost entirely the lap of last year's ERP inventory drawdown. Strip out both and underlying volume was close to flat. Health and Wellness did the heavy lifting at $918 million of the $1.91 billion, with Household at $423 million, Lifestyle at $283 million and International at $281 million.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-02
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