Chair and CEO Linda Rendle on Q1 earnings and expectations for FY25
By Linda Rendle, Chair and Chief Executive Officer
We just reported our first-quarter financial results, and we’re off to a strong start.
Stepping back, we entered the year in a position of operational strength, having fully restored supply, distribution and the vast majority of market share from the August 2023 cyberattack. This quarter we drove further progress as we fully restored overall market share, grew share in most of our categories and delivered results above our expectations while continuing to make progress against our strategy for long-term value creation.
First-quarter results were primarily driven by higher-than-expected sales in our Health and Wellness and International segments. This was driven by a combination of factors, including stronger consumption, favorable mix and early shipments in our Professional Products business ahead of the upcoming cold and flu season. The strong sales growth in the first quarter drove significant operating leverage across the P&L, benefiting gross margin, EBIT margin and earnings per share.
This quarter we also continued to deliver on our commitment to rebuilding margin. We achieved our eighth consecutive quarter of gross margin expansion, and we remain on track to return to pre-pandemic gross margins this fiscal year while investing in our business. We also continued to evolve our portfolio to reduce volatility and accelerate sales growth.
Looking ahead, we see an environment where consumers remain under pressure. So, during a time when it matters most, we are focused on delivering superior value and investing in our brands and innovation to win in the market.
Based on our strong start to the year and confidence in our plans for the balance of the fiscal year, we are maintaining our full-year sales outlook while raising our gross margin and EPS outlook. We believe this reasonably contemplates the challenges ahead and the investments required to deliver strong performance.
Our IGNITE strategy has guided us well through the volatile and challenging environment in recent years. Together with the full implementation of our streamlined operating model, continued advancement of our holistic margin management capabilities, and ongoing digital transformation, we are building a more consumer-obsessed, faster and leaner company that’s well positioned to deliver consistent, profitable growth for the long term.
We have strong fundamentals in place, and we remain laser-focused on advancing our transformation to be a stronger and more resilient company.
I’d like to thank my Clorox teammates for their contributions and dedication as we deliver on our commitments to our company and our stakeholders.