Clorox's Competitive Edge Should Endure Despite Lingering Sales and Profit Hit From Cyberbreach

The fruits of Clorox's feverish work to put pronounced inflationary headwinds and supply chain angst to rest were recently waylaid as a cybersecurity breach in mid-August forced it to take some information technology systems (including ordering) offline. Although this strangled sales and profits, we don’t surmise the firm’s competitive edge has been eroded. On the contrary, we think its entrenched standing with retailers has already and will continue to enable it to build back its shelf position, similar to its inventory revival during the pandemic.