Chair and CEO Linda Rendle on Q3 performance
By Linda Rendle, Chair and Chief Executive Officer
Our third-quarter results from fiscal year 2024, which we reported today, reflect significant progress on our long-term strategies to drive profitable growth while continuing to recover from the cyberattack earlier in the year.
We’ve regained nearly 90% of the market share we lost from the cyberattack and are on track to restore the related lost distribution by the end of the fiscal year. There were a few areas of the portfolio that experienced slower supply recovery than we planned, impacting third-quarter net sales. Importantly, we returned to normal service levels by the end of the quarter, unlocking our ability to return to full merchandising, generate demand, and further improve market share.
Net sales in the quarter decreased 5% to $1.81 billion. We expanded gross margin for the sixth consecutive quarter, to 42.2%, and adjusted EPS increased 13% to $1.71. We’re well on our way to returning to pre-pandemic margins over time and growing from there.
Throughout our recovery, we’ve been relentlessly focused on driving all four pillars of our IGNITE strategy to strengthen our competitive advantage, accelerate profitable growth and set up our company for long-term success.
This quarter was no exception. Here are some notable highlights:
- We completed the divestiture of the Argentina business in support of our goal to evolve the portfolio to reduce volatility and deliver more consistent, profitable growth.
- We continued to implement our streamlined operating model, which is on track to be completed by the end of fiscal year 2024.
- We achieved our IGNITE strategy goal to get to know 100 million consumers and improve marketing return on investment ahead of schedule.
- We introduced product innovations including seven new Hidden Valley Ranch flavors, a lineup of Scented Pine-Sol Multi-surface Cleaners in a concentrated formula helping consumers tackle more messes per bottle, and our Disinfecting Mist and Toilet Bowl Cleaning Gel in Scentiva scents to elevate the cleaning experience.
- We ranked No. 1 on Barron’s list of 100 Most Sustainable Companies for the second consecutive year, were named by Fortune as One of America’s Most Innovative Companies and were listed as One of The Most Trustworthy Companies in America by Newsweek.
While we expect the operating environment to remain challenging, we are well positioned given our advantaged portfolio and the strength and superior value of our brands. We are taking the right steps to navigate the near term and are on track to close out our 2024 fiscal year with strong fundamentals in place. We have the right investments and plans to achieve our strategic and financial objectives and enhance long-term shareholder value.
I’m grateful to my Clorox teammates around the world for executing with excellence and for their unwavering commitment to our company and our stakeholders.