Clorox Co
CLX: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$414.00 | Mjfx | Kwzkpwlr |
Inflation, Supply Disruptions Suffocate Clorox's Profits, but Its Continued Long-term Focus a Plus
Business Strategy and Outlook
The pandemic prompted consumers to scour the shelves for Clorox's fare, boosting sales. And even as volume growth is decelerating, we don’t think consumers are turning their backs on Clorox’s cleaning and disinfecting products, as sales remain well above where they were before the pandemic. For one, its health and wellness arm (around 40% of sales, housing its retail and professional cleaning operations) was up 20% in the first and second fiscal quarters on a two-year stack basis. Further evidencing the strength of its brand mix, Clorox just posted its second consecutive quarter of double-digit market share gains in the disinfecting wipes aisle.