Clorox Tempers Growth Outlook -- WSJ
02 Mayo 2019 - 2:02AM
Noticias Dow Jones
By Sharon Terlep and Micah Maidenberg
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (May 2, 2019).
Clorox Co. struggled with paltry sales growth in the most recent
quarter, bested by stronger-performing rivals and hurt by a weak
flu season that curbed demand for disinfecting wipes and
professional cleaning products.
The maker of Clorox bleach, Burt's Bees cosmetics, Kingsford
charcoal and Pine-Sol cleaner said sales increased 2% from a year
earlier to $1.55 billion.
In an earnings season that has included improved performances by
Kimberly-Clark Corp., Colgate-Palmolive Co. and, especially,
Procter & Gamble Co., Clorox said sales growth slowed in the
quarter. Clorox also gave a more tempered outlook for the year.
While its rivals capitalized on an industrywide push to raise
prices, Clorox took a hit as competitors in some categories, such
as disinfecting wipes and Glad trash bags, didn't follow suit. On
Wednesday, analysts questioned whether Clorox raised prices too
aggressively.
Clorox Chief Executive Benno Dorer said he is confident the
wipes business, in particular, will return to strength without any
long-term price cutting.
"We have been here before. As competitors come under pressure,
they sometimes react with increased promotional spending," he said.
Clorox, Mr. Dorer said, will "make sure that competitors understand
this is not the way to defend the category."
He said price increases overall were successful and helped
offset higher costs. He added that the company gained share in
two-thirds of the categories in which it increased prices.
Clorox shares were off 6.8% at $148.94 on Wednesday
afternoon.
The company narrowed its revenue forecast for its fiscal year,
saying it expects sales growth of 2% to 3% for the year, narrower
than the previous guidance of 2% to 4%.
The company also shifted its fiscal-year profit forecast,
predicting $6.25 to $6.35 a share in earnings. Previously, Clorox
forecast per-share profit of $6.20 to $6.40.
Profit rose to $187 million, or $1.44 a share, in the quarter,
from $181 million, or $1.37 a share, a year earlier. Areas of
strength included solid sales gains for Kingsford charcoal, Burt's
Bees cosmetics and Brita water-filtration products.
Write to Sharon Terlep at sharon.terlep@wsj.com and Micah
Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
May 02, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Procter and Gamble (NYSE:PG)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Procter and Gamble (NYSE:PG)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024