The Clorox Company (CLX) 23rd annual dbAccess Global Consumer Conference summary

Leadership transition and organizational focus

• CEO announced a planned transition due to health reasons, with a search for a successor underway; no immediate operational changes expected.

• Current leadership remains in place until a successor is found, ensuring business continuity.

• The team is focused on executing strategy and maintaining momentum during the transition.

Business performance and market environment

• Completed a major digital transformation and ERP transition, now stabilizing and optimizing for future efficiencies.

• U.S. retail categories are experiencing flat to modest growth, with volatility driven by consumer stress and inflation.

• Cleaning, international, and professional segments are consistently gaining share, while Glad has turned positive and litter is under strategic review.

• Innovation and superior product value are key levers for market share improvement.

Financial outlook and cost management

• Organic sales growth improved sequentially but remains below expectations; Q4 outlook is flat.

• Higher costs from ERP implementation and Middle East conflict are pressuring margins, with $20–$25 million in incremental Q4 supply chain costs.

• Cost savings initiatives were delayed but are expected to strengthen the pipeline for fiscal 2027.

• Three unique 2027 factors: ERP lapping benefit, normalization of incentive comp, and GOJO integration, with GOJO adding $600M+ to sales but neutral to EBITDA/EPS.