Shares of Clorox (CLX) rose on Friday after the company raised its full-year profit outlook, citing improved inventory levels. Clorox has been dealing with a backlog of products, but CFO Kevin Jacobson announced that the situation is starting to ease. This comes after cyber-attacks and inflation contributed to cost pressures that disrupted supply chains and disrupted the flow of inventory.
Yahoo Finance’s Seana Smith and Brad Smith explain the details.
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Editor’s note: This article was written by angel smith
Sheena Smith: Okay. Let’s take a look at Clorox, as the stock is on the rise. There’s a bit of good news in the market today. It rose nearly 6% in the premarket. The company raised its profit forecast as inventories recovered.
Now, the company’s CFO says it has made a lot of progress, faster than expected. To be clear, inventory levels are improving. And of course, this is seen as good news for investors and the company as it looks to clear some of the backlog that has been a problem not only for Clorox but also for many other companies in the space. There is.
We know that Clorox has had to raise prices to offset some of the inflationary pressures it has faced in the past. Stock prices were therefore under pressure. So there’s good news for investors. Why the stock price is only up about 6%.
Brad Smith: It’s also great news for the company in terms of gross margins. Gross profit margin increased to 43.5% from 36.2% in the same period last year. They cited pricing, cost-cutting efforts, and even benefits that more than offset some of the unfavorable exchange rates currently being seen.
So that’s particularly reflected in some of these earnings results that we’ve seen at the end of the day. And this quarter’s net sales increased by 16%.
Sheena Smith: It can also withstand the pressures we are under these days due to cyber. So go beyond that.