Clorox reaffirms guidance, pursues GOJO acquisition amid margin squeeze and slight sales decline

Clorox navigates cost pressures, reaffirms strategy

OAKLAND, Calif., Feb 4 (Reuters) - The Clorox Co. reports a modest sales decline and narrower margins for the second quarter ended Dec. 31, 2025, but tells investors it is pressing ahead with strategic investments and a major acquisition to broaden its health-and-hygiene footprint. Net sales fall 1% to $1.67 billion, gross margin slides 60 basis points to 43.2%, and diluted EPS drops to $1.29 as the company lapped prior-period insurance recoveries and tax benefits.

Health-and-hygiene expansion anchors transformation

Clorox is foregrounding the planned acquisition of GOJO Industries, maker of Purell, as a central element of its response to margin pressure and softer consumption trends. Management says the addition of GOJO strengthens its health-and-hygiene leadership and complements a slate of innovations intended to drive long-term organic growth across household and personal-care categories.

At the same time, the company emphasizes productivity initiatives and digital investments that are beginning to offset inflationary manufacturing and logistics costs. Executives describe a “back-half” operating plan focused on cost savings, supply-chain efficiencies and targeted marketing to convert shipments ahead of consumption into sustainable demand. Year-to-date operating cash flow rises slightly to $404 million, supporting continued investment.

Clorox frames the quarter as broadly in line with expectations and reaffirms its fiscal-year outlook despite a volatile retail environment. Chief Executive Linda Rendle highlights execution against strategic priorities — innovation, transformation and the health-and-hygiene deal — as reasons management keeps guidance intact. The company reports non-GAAP adjusted EPS of $1.39, down 10%, and points readers to detailed reconciliations online.

Management to present at CAGNY

Clorox says Rendle and CFO Luc Bellet will present at the Consumer Analyst Group of New York (CAGNY) conference on Feb. 19 with a live webcast available on the company website. The event is intended to give analysts and investors direct access to executive commentary on strategy, performance and integration plans for GOJO.

Brands, sustainability and reporting notes

Headquartered in Oakland since 1913, Clorox stresses its portfolio of trusted brands — including Clorox, Brita, Glad, Burt’s Bees and Pine-Sol — and reiterates its commitment to sustainability and consumer-centric innovation. The company notes that organic sales growth and adjusted EPS are non-GAAP measures and provides reconciliation tables in the press release.