Wide-Moat Clorox Employs a Prudent Strategy, Anchored in Brand Support, to Navigate Choppy Waters

With its entrenched retail standing and unrelenting focus on investing behind its leading brand mix, Clorox has withstood the onslaught of pressures from covid, supply chain angst, rampant inflation, and an August 2023 cybersecurity attack. More recently, it has acknowledged a step-up in promotional spending, particularly in litter, bags, and wraps. Still, we don't believe this suggests an irrational competitive landscape or that the firm is pursuing a volume-over-value strategy. Rather, from where we sit, Clorox remains resolute in investing to support the long-term health of the business to ensure its competitive edge holds.