Clorox sees FY25 adjusted EPS $6.55-$6.80, consensus $6.45

FY25 Net sales are expected to be flat to down 2% compared to the prior year. FY25 consensus $7.33B. Organic sales are expected to be up 3% to up 5% excluding about 2 points of negative impact from the divestiture of the company’s business in Argentina and about 3 points of negative impact from the expected divestiture of the Better Health VMS business. Gross margin is expected to be up about 100 basis points, primarily due to the benefits of holistic margin management efforts, partially offset by cost inflation and higher trade promotional spending. Selling and administrative expenses are expected to be between 15% and 16% of net sales, which includes about 150 basis points of impact from the company’s strategic investments in digital capabilities and productivity enhancements. Advertising and sales promotion spending is expected to be about 11% to 11.5% of net sales, reflecting the company’s ongoing commitment to invest behind its brands. The company’s effective tax rate is expected to be about 28%. Excluding the impact of the Better Health VMS sale, the company expects its fiscal year adjusted effective tax rate to be about 24%.