Clorox Bets on GOJO Deal and Digital Optimization for Growth

Zacks Investment Research··US·Read original
2▲1 ▼0Impact / 5
Summary · why it matters

Clorox is leaning on portfolio expansion, innovation and a completed digital transformation to rebuild market share as it navigates a challenging consumer environment. The company has finished its five-year digital transformation program, including the rollout of its U.S. enterprise resource planning system, and is now shifting from implementation to optimization, with productivity benefits expected to begin in the latter part of fiscal 2027 and build into fiscal 2028. The acquisition of GOJO Industries has broadened Clorox's health and hygiene presence, a portfolio that now accounts for more than half of net sales on a combined basis, and GOJO is expected to contribute significantly to fiscal 2027 sales growth. Clorox has increased innovation spending and plans further investment in health and wellness, pet care, convenience and value, pairing product innovation with packaging improvements, targeted promotions and optimized price-pack architecture. Shares of Clorox have lost 19.4% in the past six months against the industry's growth of 3.9%, and the stock trades at a forward price-to-earnings ratio of 13.62X versus the industry's average of 18.11X. The Zacks Consensus Estimate for Clorox's fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 6% and 8.9%, respectively, and the stock currently carries a Zacks Rank #3 (Hold).

Impact on assets 4

Consumer Staples▲ · 4 stocks
The Clorox Company
CLX
▲ PositiveCapitalDemandrelevance

Clorox completed its five-year digital transformation and is shifting to optimization, with productivity benefits expected in fiscal 2027-2028.

Off-coverage companies 1

GOJO IndustriesPrivate▲ Positive
Demandrelevance

Clorox's acquisition of GOJO Industries is expected to contribute significantly to fiscal 2027 sales growth.

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