Clorox announced its Q4 and fiscal year 2026 results, revealing a 2% decrease in net sales to $1.95 billion for the fourth quarter. The company stated that the GOJO acquisition contributed approximately 3 points to sales, while organic sales declined by 8%. For the full fiscal year 2026, net sales also decreased by 2%, and organic sales saw a more significant drop of 13%.
Diluted net earnings per share (EPS) for Q4 decreased by a substantial 50% to $1.34, down from $2.68 in the prior year. This decline was primarily attributed to GOJO transaction-related costs, including inventory step-up and integration expenses. Adjusted EPS also fell by 42% to $1.66 from $2.87, largely due to lower net sales and a reduced gross margin. The company noted that the ERP-related shipment comparison negatively impacted adjusted EPS by about $0.90.
Gross margin for the quarter decreased by 520 basis points to 41.3% from 46.5%. The ERP-related shipment comparison and the GOJO inventory step-up each reduced the gross margin by approximately 150 basis points. Net cash provided by operations saw a significant 38% decrease, totaling $612 million compared to $981 million in fiscal year 2025, mainly driven by the termination payment for the Glad Venture Agreement.
