Clorox sees FX headwinds a 2-point reduction to FY23 sales

The company is confirming the following elements of its fiscal year 2023 outlook: Foreign exchange headwinds continue to represent about a 2-point reduction in sales. Gross margin increase of about 200 basis points, primarily due to the combined benefit of pricing, cost savings and supply chain optimization, more than offsetting continued cost inflation. Selling and administrative expenses between 15% and 16% of net sales, including about 1.5 points of impact from the company’s strategic investments in digital capabilities and productivity enhancements. Advertising and sales promotion spending of about 10% of net sales, reflecting the company’s ongoing commitment to invest in its brands. Effective tax rate of about 24%, with year-over-year increase primarily reflecting lower excess tax benefits from equity compensation.