Progress in Rebuilding Distribution Post-Cyberbreach Showcases Clorox's Stout Competitive Position

The fruits of Clorox's work to put pronounced inflationary headwinds and supply chain angst to rest were sidelined as a cybersecurity breach in mid-August forced it to take some information technology systems (including ordering) offline. Although this initially 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.