Clorox (CLX) Falls Sharply as COVID-19 Demand Wanes

August 3, 2021 7:59 AM EDT

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Shares of Clorox (NYSE: CLX) are down about 10% in pre-open Tuesday after the company saw fading demand for its products.

The company’s biggest unit by revenue generated, the health and wellness division, witnessed a 17% decline in sales. The company recorded falling sales in three out of four business divisions as pandemic-shaped demand for Clorox waned.

Overall, sales dropped to $1.8 billion from $1.98 billion to miss on the Street consensus of $1.92 billion.

"Fiscal year 2021 was an extraordinary year for Clorox, with the pandemic putting us through the test of volatility, including rapid changes in consumer demand and inflationary pressure, which is reflected in our fourth quarter results," said CEO Linda Rendle.

"It reinforced the strength of our global portfolio, which has never been more relevant to consumers. And it showed the opportunity to accelerate our IGNITE strategy to capitalize on changing consumer trends, differentiate Clorox and win in our categories.”

Adjusted EPS came in at $0.95 to mark a 61% fall compared to a year-ago period.

The guidance missed as well with CLX expecting full-year fiscal sales to plunge between 2% and 6% compared to a 1% decline expected from the Street.

“As we head into fiscal year 2022, we're laser focused on operational execution, rebuilding our margins and driving market share improvements in this dynamic environment. We're also making key multiyear investments to accelerate our digital transformation and strengthen our capabilities and brands to drive profitable growth over the long term,” Rendle added.

In addition to the fading environment previously shaped by COVID-19, Clorox also blamed falling sales on “unfavorable price mix driven by supply improvements.”

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