Clorox Co
CLX: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| @H< | LOCK|Vg | LOCK|n>C&NGzg |
Clorox Earnings: Sales and Profits Tarnished by ERP Inventory Drawdown, but Shares Still a Bargain
Clorox reported a 17% drop in organic sales, as retail inventory was depleted during its enterprise resource planning implementation. This volume deleverage also constrained gross margins, which fell 410 basis points to 41.7%; cost savings largely offset higher manufacturing and logistics costs.
