Company: CLX
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000021076-25-000053
Chunk: 87

Company: CLOROX CO /DE/
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 87
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%, respectively, driven by lower shipments in the current period following the incremental shipments related to the ERP transition in the fourth quarter of fiscal year 2025. 

Three months ended9/30/20259/30/2024% ChangeGross profit$596 $807 (26)%Gross margin41.7 %45.8 %

Gross margin decreased by 410 basis points in the current period from 45.8% to 41.7%. The decrease was primarily driven by lower volume and higher manufacturing and logistics costs, partially offset by cost savings.

Expenses

Three months ended% of Net Sales9/30/20259/30/2024% Change9/30/20259/30/2024Selling and administrative expenses$277 $281 (1)%19.4 %15.9 %Advertising costs166 201 (17)11.6 11.4 Research and development costs28 31 (10)2.0 1.8 

Selling and administrative expenses, as a percentage of net sales, increased by 350 basis points, while dollars were essentially flat in the current period versus the prior period. The increase in selling and administrative expenses as a percentage of net sales was primarily due to lower net sales in the current period related to the ERP transition. 

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RESULTS OF OPERATIONS (Continued)

Advertising costs, as a percentage of net sales, increased by 20 basis points in the current period versus the prior period, while dollars decreased. The increase in advertising costs as a percentage of net sales was primarily due to lower net sales in the current period related to the ERP transition. The Company continues to support its brands. The Company’s U.S. retail advertising investments as a percentage of net sales increased from 12% to 13% versus the prior period.

Research and development costs, as a percentage of net sales, increased by 20 basis points in the current period as compared to the prior period, while dollars were essentially flat. The increase in research and development costs as a percentage of net sales was primarily due to lower net sales in the current period related to the ERP transition. The Company continues to invest in product innovation and cost savings.

 Loss on divestiture, interest expense, other (income) expense, net and the effective tax rate on earnings 

Three months ended9/30/20259/30/2024Loss on divestiture$— $118 Interest expense23