Clorox Erases Pandemic Gains, Sees Margin Recovery Taking Years
- Rising costs erode profitability for maker of household goods
- Stock has biggest intraday drop in more than two decades
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Clorox Co. shares fell by the most since 2000, erasing their pandemic-era gains, after the company said it would take “several years” to rebuild margins that have been hammered by higher costs.
The maker of disinfectant wipes and cleaning products expects a steeper drop in gross margins this fiscal year, which ends in June. Commodities, manufacturing and logistics are to blame, with extra costs now seen at $500 million for the year, Chief Executive Officer Linda Rendle said in an interview on Thursday, compared to the $350 million the company mentioned three months ago.