Clorox bets on strong inventory to help overcome cyber attack hit
Reuters
Published Nov 01, 2023 04:16PM ET
Updated Nov 01, 2023 05:26PM ET
By Juveria Tabassum
(Reuters) -Clorox said on Wednesday it expects to rebuild customer inventory levels by the end of the current quarter, as it recovers from an August cyberattack that threw its order fulfillment facilities out of gear for more than a month.
Shares of the cleaning supplies maker rose over 6% in extended trade, reversing earlier losses.
The company topped market expectations for first-quarter revenue, and posted a surprise profit against market expectations of a loss.
Clorox (NYSE:CLX) said that it expects second-quarter organic sales to be up mid-single digits as restocking customer inventory levels help soften the blow from lost consumption.
For the first quarter ended Sept. 30, the company posted a profit of 49 cents, as it benefited from multiple rounds of price hikes taken over the last two years. Analysts had expected it to post a loss of 22 cents, as per LSEG data.
The Pine-Sol manufacturer was among several companies including gambling giants MGM Resorts (NYSE:MGM) International and Caesars (NASDAQ:CZR) Entertainment to be hit by cyber attacks since August. Clorox had anticipated its first-quarter results to be impacted by the shipping delays caused by the incident.
Still, the attack took a toll on the company's annual profit and revenue forecasts, as well as gross margin growth expectations.
With Clorox's products off the shelves for a short period in September due to the attack, CFO Kevin Jacobsen told Reuters that private label brands made some inroads into the company's market share.
The company now expects an annual adjusted profit between $4.30 and $4.80 per share, compared with its previous forecast of $5.60 and $5.90 per share.
Clorox expects net sales to be down mid-to-high single digits, as against its previous forecast of flat to 2% up.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.