Clorox Company (CLX)

Over the past six months, CLX stock has experienced a decline of approximately 25.68%. The company's Q3 Fiscal Year 2025 results showed an 8% decrease in net sales, primarily due to divestitures, while Q2 Fiscal Year 2025 results showed a 15% decrease in net sales, largely due to lapping the impact of retail inventory restoration following the August 2023 cyberattack and the aforementioned divestitures. Clorox completed the divestiture of its Better Health VMS business and its operations in Argentina, Uruguay, and Paraguay. UBS lowered its price target for Clorox from $176 to $154, maintaining a "Neutral" rating, citing dwindling consumer demand and uncertain tariff implications. Clorox and Procter & Gamble jointly decided to wind down their Glad® bags and wraps joint venture by January 31, 2026, with Clorox planning to acquire P&G's 20% interest. Clorox noted a weakening in consumer sentiment and changing shopping habits. Recent events include Clorox's presentations at conferences, the election of Gina Boswell to its Board of Directors, a new agreement between CloroxPro and Vizient, and marketing collaborations.

Demand for Clorox's products can exhibit seasonality, with grilling sales influenced by weather patterns and water filtration product sales affected by back-to-school promotions. The company's diversified portfolio helps mitigate overall risks and capture growth opportunities throughout the year, although the broader consumer staples sector has recently faced challenges due to dwindling consumer demand.

The Clorox Co. is a leading manufacturer and marketer of a diverse range of consumer and professional products, operating within the Consumer Packaged Goods, Consumer Staples, and Consumer Non-Cyclical sectors, specifically in the Personal & Household Products and Household/Personal Care industries. Its extensive product portfolio includes grilling products, digestive health products, cat litter, dressings and sauces, cleaning and disinfecting products, bags and wraps, and home care products. Key brands include Clorox, Brita, Burt's Bees, Glad, Kingsford, Hidden Valley, Pine-Sol, Liquid-Plumr, and others.

The Clorox Co. has a significant global presence, with operations in approximately 25 countries and territories and products sold in over 100 countries worldwide. While headquartered in Oakland, California, U.S., more than 80% of its sales originate from its home market. The company's international footprint includes key markets such as Canada, Chile, Argentina, Peru, Malaysia, the UAE, Ireland, Hong Kong, and China. Clorox is actively focusing on expanding its presence in high-growth emerging markets, particularly in Latin America and Asia.

The Clorox Co. has maintained a strong brand reputation, ranking No. 1 on Barron's 100 Most Sustainable Companies list for the second and third consecutive years and being recognized as a U.S. Environmental Protection Agency Safer Choice Partner of the Year. The company also received innovation awards for its Clorox Foaming Toilet Bomb Toilet Bowl Cleaner and Clorox EcoClean Disinfecting Wipes. A cyberattack in 2023 impacted the company's reputation and operations, leading to revenue loss and product shortages, but Clorox has recovered nearly 90% of the market share lost as of March 31, 2024.

The ownership structure of The Clorox Co. is predominantly institutional, with 80.33% held by institutional shareholders, 1.24% by company insiders, and 18.43% by retail investors. The company has 1,878 institutional owners and shareholders. The largest institutional shareholders include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Vanguard Group Inc. is the largest individual shareholder, owning 15.57 million shares, representing 12.64% of the company.