Clorox Chief Executive Officer Linda Rendle told CNBC on Wednesday that the company’s products are “home appliances” that can withstand a rising inflationary environment and tough economic times.
The company’s brands include Clorox products of the same name as well as Brita water filters, Glad bags and Burt’s Bees to highlight a few.
As an example of Clorox’s pricing power, Rendle referenced another bull run set up in July to help offset higher costs and “recover profits over time”.
CEO told Jim Cramer above “Mad Money” that the Clorox brand delivers exceptional value for the things people need to use every day, even in times of recession. In 2008, during the financial crisis, “our categories were very sustainable and we grew the majority of our brands,” she explains.
Have an interest Federal ReservePositive moves to quell inflation can slow economic growth and trigger a recession. Fed interest rate increase add 50 basis points on Wednesday.
Clorox reported a decidedly mixed quarter after Monday’s closing bell. Shares opened Tuesday lower but closed up 3%. It added another 1.4% on Wednesday.
- The consumer packaged goods factory late Monday reported adjusted third-quarter financial earnings of $1.31 per share, beat estimates but fell 19% from about a year ago.
- Net sales rose 2% to $1.81 billion, slightly better than expected. Gross margin has been broken.
- The company fell 20 cents from its full-year earnings forecast, while maintaining an expected 1% to 4% decline in net sales for the year.
“In the first part of the fiscal year, we posted 27% sales growth in the previous year period. But this quarter, as we achieved a more normalized environment, we were able to grow. organic in three of the four Rendle said, “Plus, we were able to increase market share.”
Rendle says that the cleaning habits born of the Covid pandemic are still clinging even as many aspects of life have reverted to more normal routines. The company has caught on to this trend, launching packaging solutions so people can “control their surroundings” and use products on the go, she said, noting that Clorox is a ” much larger business” than before the pandemic.
