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IPFS News Link • Economy - Economics USA

Consumer Goods Giant Clorox Slashes Profit Outlook, Signals Further Price-Hikes

• Zero Hedge

Clorox shares slipped premarket Tuesday after the maker of disinfectant wipes and other consumer goods cut its full-year gross margin outlook due to inflationary troubles on Monday. The company plans to hike prices on various products through the summer.  

The company reported a third-quarter (ended March 31) adjusted profit of $1.31-per-share, down from $1.62-per-share for the same quarter a year ago. Net sales rose 2% to $1.81 billion, compared with flat sales last year. Net sales were also higher than the estimated $1.79 billion. 

Clorox said net sales for the year could decrease by 1% to 4%. Higher operating costs will hurt gross margins, which are expected to decrease by 800bps. The company said the extra costs are "primarily due to higher than previously anticipated commodity and manufacturing and logistics costs."  


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