Clorox Trims Annual Sales Forecast As Economic Uncertainty Hits Demand For Its Cleaning Products

Clorox (CLX) on Monday posted quarterly sales that missed analyst expectations and lowered its full-year outlook, citing shifting consumer habits that have dampened demand for some of its products.

"In the third quarter, heightened macroeconomic uncertainties drove changes in shopping behaviors, resulting in temporary category slowdowns and lower sales," CEO Linda Rendle said, adding that the slowdown is expected to continue into Q4.

While Clorox has minimal exposure to tariffs — importing only small amounts of raw materials from Mexico and Canada — sales of its cleaning products are being impacted by reduced consumer spending amid economic uncertainty.

Clorox now expects net sales in the year to be down 1% to flat, compared to its earlier target of down 1% to up 2%.

In the bygone Q3, net sales fell 8% to $1.67 billion, missing analysts' estimates of $1.73 billion from LSEG/Reuters.

Procter & Gamble (PG) and Colgate-Palmolive (CL), which sell some products comparable to those from Clorox, announced last month that they would raise prices on select products to offset higher input costs.

On Stocktwits, the retail sentiment for Clorox, however, rose to 'extremely bullish' from 'bullish'.

A user said that Clorox's dividend adds to its appeal.

Clorox stock is down 14.8% year to date.

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