After reporting better-than expected quarterly results yesterday, Clorox (NYSE: CLX) reveals it is working on sustaining the momentum for the long run. Amid the ongoing coronavirus pandemic, the company has experienced an influx of customer demand, leading to a double-digit rise in sales.
The American household products manufacturer reported adjusted earnings of USD2.03 per share, higher than Zacks Consensus Estimate of USD1.73. Furthermore, sales amounted to USD1.84 Billion, a 27% jump compared to the previous year’s USD1.45 Billion.
Jim Cramer asked CEO Linda Rendle if the company would be able to preserve the growth it had experienced post-pandemic.
“We think we can because we’re focused on innovation and ways to help consumers as they have these new habits,” Rendle said on “Mad Money.”
Clorox has experienced about 15% revenue growth in four of five of its latest quarterly reports as customers continue to stock up on cleaning supplies amid the ongoing virus. The company believes that new consumer trends have emerged and that it will be able to capitalize on the change. Health and wellness sales rose 44%, meanwhile household sales grew 22%.
“We’re going to deliver innovation that helps delight them,” Rendle said. “We’re going to be there with better solutions in both charcoal and pellets to help delight them.”
In order to meet the increasing demand, Clorox has kept factories running 24 hours a day as well as using third-party suppliers.
Nevertheless, Clorox shares fell over 6% on Thursday as the stock levels out from last year’s all-time highs. The stocks closed at USD191.65, a 17% plummet from last week’s numbers.
“We have our sights set on accelerating the growth in the long term and we see tremendous opportunity to do that,” Rendle said. “We’re seeing consumers change their behaviors not only in cleaning and disinfecting, but in taking care of their home and wanting to have better in-home experiences. That certainly bodes well for our portfolio.”