Clorox Earnings: Macroeconomic Uncertainty Bites, but Long-Term Playbook Intact; Shares Attractive

Clorox reported a 2% organic sales decline due to lower prices and unfavorable mix. However, its gross margin jumped 240 basis points to 44.6%, reflecting cost savings (a 170-basis-point benefit) and the divestitures of its lower-margin vitamins and Argentina businesses (a 50-basis-point benefit).