As jab rates rise, Americans are getting more and more comfortable with germs once again.
Case in point: Clorox, which has seen much of its pandemic gains wiped clean.
Removes 99% of Germs, and 10% of Shareholder Value
As Americans spent a year wiping down everything from magazines to mangos, few companies were poised to profit as much as the Kleenex of disinfectant wipes. Literally unable to keep stock on the shelves, Clorox grew at a rate of over 20% in peak pandemic months, according to CFO Kevin Jacobsen.
But what goes up must come down, and Clorox is certainly getting a lesson in the laws of gravity. The company now expects flat revenues and profits for the next fiscal year, which began Thursday:
- Shares of Clorox are down over 10% in 2021, earning the brand a not-so-sparkling spot among the year’s worst performers in the S&P 500. Overall, its stock has fallen 25% since last summer’s peak.
- In April, the company reported flat quarterly sales from a year earlier, with a 15% drop in adjusted earnings. And Clorox expects sales and earnings to remain flat in 2022.
Still, Jacobsen said the company is confident in long-term growth projections of 3-5%.
More Than Wipes: Notably, Clorox has a portfolio that includes more than just its chief brand. Among its other assets: Glad trash bags, Fresh Step cat litter, and Hidden Valley salad dressings. Maybe a run on ranch would help buoy the brand.