KEY POINTS

  • Clorox reported 1Q19 revenues of $1.56 billion, up 4.2% year over year and beating the consensus estimate of $1.54 billion. EPS was $1.62, up 11% from the year ago quarter, above the consensus estimate of $1.58 and above last year’s EPS of $1.46.
  • Three of the company’s four segments showed positive or flat sales growth. Cleaning sales grew by 2%, Household sales remained flat, Lifestyle sales grew by 26% and International sales decreased by 5%.
  • Clorox maintained its full year sales growth guidance of 2%–4%. The company lowered its full year EPS guidance to $6.20–$6.40 from the previous $6.32–$6.52.  

Fiscal 1Q19 Results

Clorox reported 1Q19 revenues of $1.56 billion, up 4.2% year over year and beating the consensus estimate of $1.54 billion. The diluted EPS was $1.62, up 11.0% from the year ago quarter, above the consensus estimate of $1.58 and above last year’s EPS of $1.46.

Clorox’s overall sales grew by 4.0%, and by segment, three of the company’s four segments showed positive or flat sales growth. Cleaning segment sales grew by 2%, Household segment sales remained flat, Lifestyle segment sales grew by 26% and International segment sales decreased by 5%.

Cleaning segment sales increased by 2%, with sales growth driven by gains in Home Care with strength in the number of Clorox-branded products, including Scentiva. 

Sales in the lifestyle segment increased by 26% from the year ago quarter, in which segment gains came from the Nutranext business which was acquired in April 2018.

The international segment saw a sales increase of 5%. The segment sales growth was driven by the benefit of price increases and supported by volume growth due to innovations which were offset by unfavorable foreign currency exchange rates. 

Household segment sales were flat, reflecting double-digit sales increases in cat litter and supported by the company’s new product Fresh Step Clean Paws which were offset by a double-digit decrease in Charcoal due to lower consumption as well as decreases in Bags and Wraps due to lower merchandising activity for food storage products. 

Outlook

Clorox maintained its full year sales growth guidance of 2%–4%. The company lowered its full year EPS guidance to $6.20–$6.40 from the previous $6.32–$6.52.  


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