Published on 9 Apr 2024 on Zacks via Yahoo Finance

Here's Why Clorox's (CLX) Strategic Efforts Appear Good

The Clorox Company CLX stock is doing well on the bourses, thanks to its robust strategic efforts. The company has been gaining from pricing and cost-saving initiatives for a while now. Its latest and integrated IGNITE strategy focuses on the expansion of the key elements under the 2020 Strategy to pace up innovation across each area of the business.Shares of this producer, marketer and seller of consumer products have increased 18.6% in the past six months compared with the industry’s 10.1% upside. A Growth Score of B further adds strength to this current Zacks Rank #3 (Hold) company.

Let’s Delve Deeper

Clorox’s robust pricing and cost-saving initiatives offset elevated manufacturing and logistic costs. This led to a gross margin expansion of 730 basis points (bps) year over year during the second quarter of fiscal 2024. This marked the fifth consecutive quarter of gross margin expansion on the back of pricing and cost savings, somewhat offset by adverse foreign currency fluctuations. For fiscal 2024, the gross margin is projected to expand 200 bps year over year.The company is on track with the IGNITE strategy. This strategy encompasses the long-term financial targets of achieving net sales growth of 3-5%, EBIT margin expansion of 25-50 bps and free cash flow generation of 11-13% of sales.