Company: CLX
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000021076-25-000023
Chunk: 84

Company: CLOROX CO /DE/
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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%. The increase was primarily driven by cost savings, and the net impacts of higher volume and the divestitures of the Better Health VMS and Argentina businesses, partially offset by unfavorable mix.

Expenses

Three months ended% of Net Sales3/31/20253/31/2024% Change3/31/20253/31/2024Selling and administrative expenses$267 $301 (11)%16.0 %16.6 %Advertising costs207 215 (4)12.4 11.9 Research and development costs27 32 (16)1.6 1.8 Nine months ended% of Net Sales3/31/20253/31/2024% Change3/31/20253/31/2024Selling and administrative expenses$828 $899 (8)%16.2 %17.3 %Advertising costs599 566 6 11.7 10.9 Research and development costs89 93 (4)1.7 1.8 

Selling and administrative expenses, as a percentage of net sales, decreased by 60 basis points and 110 basis points in the current three and nine month periods, respectively, versus the prior periods. The dollar decrease in selling and administrative expenses in the current three month period was primarily due to the impact from the divestitures and lower incentive compensation expense in the current period. The dollar decrease in selling and administrative expenses in the current nine month period was primarily due to the impact from divestitures in the current period and incremental costs resulting from the cyberattack in the prior period. For further information on the cyberattack, see Notes to Condensed Consolidated Financial Statements.

Advertising costs, as a percentage of net sales, increased by 50 basis and 80 basis points in the current three and nine month periods, respectively, versus the prior periods. The increase in advertising costs reflects the Company’s continued support behind its brands. The Company’s U.S. retail advertising spend as a percentage of net sales increased from 12% to 14% versus the prior three month period.

Research and development costs, as a percentage of net sales, decreased by 20 basis points in the current three month period and were essentially flat in the current nine month period as compared to the prior periods, while dollars decreased in both periods. The Company continues to invest behind product innovation and cost savings.

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RESULTS OF OPERATIONS (Continued)

 Loss on div