$CLX · CLOROX CO /DE/
Clorox filed its 10-Q for Q1 FY2027 (ended September 30, 2026), reporting net sales of $1.905B (+33.3% YoY), net earnings attributable to Clorox of $170M, and diluted EPS of $1.39 — more than double the prior-year $0.65. The surge reflects the April 2026 acquisition of GOJO Industries (Purell) for approximately $2.147B, funded via commercial paper and new debt. Gross margin declined 130 bps to 40.4% on higher commodity and manufacturing costs, while interest expense rose to $52M from $23M on incremental acquisition borrowings.
- Net sales hit $1.905B, up 33.3% YoY from $1.429B, driven by the GOJO/Purell acquisition closed April 2026.
- Diluted EPS more than doubled to $1.39 from $0.65 a year ago.
- Health and Wellness segment sales jumped 62% to $918M, reflecting the Purell contribution.
- Gross margin compressed 130 bps to 40.4% on higher commodity and manufacturing costs.
- Interest expense more than doubled to $52M from $23M due to incremental borrowings for the $2.147B GOJO deal.
Extended-hours trading shows CLX at $91.97, up 2.30% vs the regular close of $89.90. The market is rewarding the massive revenue and earnings beat, with the GOJO acquisition clearly transforming the top line.
The first full quarter including Purell shows the GOJO deal is immediately transformative, doubling EPS and adding nearly $500M in quarterly revenue, but margin pressure and debt service costs bear monitoring.
The GOJO/Purell acquisition transforms Clorox's Health and Wellness segment into a nearly $1B/quarter business, significantly expanding its professional hygiene footprint beyond legacy consumer cleaning categories.
Gross margin erosion from higher commodity and logistics costs is a headwind; interest expense surged on acquisition debt, and the purchase price allocation for GOJO remains preliminary with potential measurement-period adjustments.