Clorox shares have soared more than 54% for the year to date, an increase of $11.5 billion to $29.5 billion.
“Today, the run rate is now in the couple hundred million dollar range, which is more than we expected at the time we launched.”
Clorox Co. and Proctor & Gamble Co. have seen sales for their hygienic and cleaning products skyrocket during the COVID-19 pandemic, with both consumer goods giants struggling to keep up with demand.
CLOROX EMBARKS ON ITS LARGEST ONE-YEAR GAIN IN 20 YEARS
Clorox Co. CLX, -0.99% reported fiscal fourth-quarter profit and sales that beat expectations, with cleaning products a highlight of the quarter. Cleaning, which includes the laundry and home care categories, accounted for 30% of fiscal year 2020 sales.
“The business had another quarter of double-digit sales growth behind continued elevated demand across the portfolio,” said Lisah Burhan, vice president of investor relations, on the earnings call, according to a FactSet transcript.
“While we’ve been able to add significant capacity, demand still far exceeds supply, leading to continued out-of-stocks for many products.”
According to reports, one of those products is Clorox Wipes, which might not be fully stocked on store shelves until next year.
MarketWatch reached out to Clorox for details about availability of Clorox Wipes and received a statement that reiterates Chief Executive Benno Dorer’s comments, from the earnings call.
“Since Q3, we were able to bring on more than 10 new suppliers to help us maximize our output, not just for disinfecting products, but for other parts of our portfolio too,” he said, according to FactSet. “For disinfecting products, we’re continuing to run our plants 24/7, and we’ll be bringing more disinfecting capacity online in the midterm. With all the levers we’re pulling to expand output, I am confident in our ability to do better for our customers and consumers.”
Clorox stock has soared 54.5% for the year to date, with the stock up 16.6% in the past three months.
“Clorox continues to chase demand for disinfecting products and is still prioritizing shipments to healthcare facilities, which has caused some stock-outs on retail shelves and therefore share losses,” wrote Linda Bolton Weiser, D.A. Davidson senior research analyst.