Clorox (NYSE: CLX) is contemplating higher product prices as a result of inflammatory costs, according to CEO Linda Rendle.
“We do need to address the cost environment that we’re experiencing,” Rendle said. “We’re seeing costs across many inputs rise.”
Rendle revealed that transportation costs have also risen and that she anticipates higher prices “over the mid-term” due to inflation.
“We’ll activate our long-standing cost savings program and ensure that we’re delivering that across our businesses,” she said on “Mad Money.” “We’re looking at price increases, although we’re being very measured and taking that in a category-by-category approach and, of course, we’ll focus on innovation and margin-accretive innovation.”
Though Rendle believes that cost will continue to climb beyond this quarter, she anticipates several costs to cancel out amid reduced Covid related expenses as the economy recovers. The Federal Reserve said it would not take action against inflation until the labor market had been stabilized following lockdowns.
“We’re focused on the long term,” Rendle said. “We’re going to manage through this tough cost environment, but we’re confident in our ability to accelerate long-term profitable growth.”
Clorox is one among many companies that have cautioned possible price increases following the pandemic. Products such as bikes, cars and even imported cheese are set to experience higher prices as a consequence of supply chains, backlogged ports and inflation.
Clorox presented mixed results in its fiscal third-quarter Friday. Revenue was stagnant compared to the previous year, after four consecutive quarters of double-digit growth. The stock was down 2% during the session.