Clorox Files 10-K Showing Revenue Decline Amid ERP Transition, GOJO Acquisition
The consumer products company reported $6.7 billion in fiscal 2026 sales and 9,200 employees as it completed a major enterprise system overhaul and absorbed the Purell brand owner.
Revenue Pressures and ERP Disruption
The Clorox Company reported fiscal year 2026 net sales of $6.7 billion with approximately 9,200 employees worldwide as of June 30, 2026, according to its annual 10-K filing submitted August 7. The consumer products giant experienced declines in both organic sales and earnings during a year marked by the completion of a major enterprise resource planning (ERP) system implementation (10-K filing, 2026-08-07).
Diluted earnings per share decreased 26% compared to the prior year, "primarily due to lower net sales and higher manufacturing and logistics costs, partially offset by lapping the loss on the divestiture of the Better Health Vitamins, Minerals and Supplements (VMS) business in the prior period" (10-K filing, 2026-08-07).
The company attributed part of its sales decline to timing issues related to its ERP transition. During the fourth quarter of fiscal 2025, certain retailers placed advance orders to minimize potential inventory impacts during the implementation phase, providing a benefit to fiscal 2025 sales but creating an offsetting negative impact in fiscal 2026 as retailers drew down that inventory (10-K filing, 2026-08-07).
GOJO Acquisition Expands Health Portfolio
In April 2026, Clorox completed the acquisition of GOJO, adding the Purell brand and expanding its health and hygiene product portfolio. The company acquired all issued and outstanding membership interests of GOJO, which now operates as Clorox Purell and is based in northeast Ohio (10-K filing, 2026-08-07).
The acquisition "reflects the Company's strategy to expand its position in health and hygiene and strengthens its presence in business-to-business (B2B) channels, including healthcare and other institutional markets, through an established distribution network and a large installed base of dispensing systems that drive recurring demand" (10-K filing, 2026-08-07).
Digital Transformation Completed
Clorox completed implementation of its new ERP system in the third quarter of fiscal 2026, concluding a transformation effort announced in August 2021. The total incremental transformational investment was approximately $580 million, transitioning the company to a cloud-based platform (10-K filing, 2026-08-07).
The company expects these implementations "will generate efficiencies and transform the Company's operations in the areas of supply chain, digital commerce, innovation, brand building and more over the long term" (10-K filing, 2026-08-07).
Glad Venture Concludes
The company's venture agreement with The Procter & Gamble Company for the Glad bags and wraps business expired on January 31, 2026. Clorox was required to purchase P&G's 20% interest in the business at fair value, though the Glad business retained exclusive core intellectual property licenses on a royalty-free basis (10-K filing, 2026-08-07).
Shareholder Returns Continue
During fiscal year 2026, Clorox paid $602 million in dividends to shareholders. In July 2026, the company announced a 1% dividend increase (10-K filing, 2026-08-07). According to MarginX data, the next cash dividend of $1.25 is scheduled for August 12, 2026, with first-quarter fiscal 2027 earnings expected October 30, 2026.
The company maintains operations in approximately 25 countries and sells products in approximately 95 markets, with over 80% of sales generated from brands holding the No. 1 or No. 2 market share positions in their categories (10-K filing, 2026-08-07).
This article was generated by MarginX from the 10-K filing on 2026-08-07. It is not investment advice.