The Clorox Company (NYSE: CLX) moved sharply lower Friday on stock markets, a day after second-quarter results were released.
Net sales declined 8% to $1.7 billion in comparison to a 27% increase in the year-ago quarter, or an increase of 19% on a two-year stack basis. The decline in net sales reflects a 10-point decline in volume and two points of favorable price mix. Foreign exchange was flat, and organic sales for the quarter declined 8%.
Gross margin decreased 1,240 basis points to 33% from 45% in the year-ago quarter driven primarily by higher manufacturing & logistics and commodity costs.
Diluted net earnings per share declined 72% to $0.56 from $2.03 in the year-ago quarter, primarily driven by lower gross margin and lower net sales.
Adjusted EPS declined 67% to $0.66 and excludes 10 cents related to investments in the company's long-term strategic digital capabilities and productivity enhancements.
Year-to-date net cash provided by operations declined 65% to $222 million, compared to $629 million in the year-ago period.
"In the face of a challenging cost environment, we're executing well on the factors we control. We're driving cost savings and pricing to mitigate inflationary headwinds, while also continuing to meet strong demand across our portfolio,” said CEO Linda Rendle. “And we're keeping an eye on the long-term by investing in innovation, our brands and strategic digital capabilities."
CLX shares shed $18.87, or 11.4% to $146.48.
