Clorox Falls on Guidance Cut After Cyber Attack
Clorox (CLX:US) has reported preliminary results for its first fiscal quarter, sending its shares about 3% lower on Thursday.
The adjusted loss per share for the first quarter is seen in the range of 40 cents to $0. Additionally, the preliminary loss per share for the quarter is expected to be between 35 cents and 75 cents.
The company cited the impact of a cybersecurity attack as a contributing factor to these results.
“The impact of the cybersecurity attack also includes lower cost absorption in cost of products sold and operating expenses, which are largely fixed costs in the short term,” it is said in the statement.
Preliminary net sales for the first quarter are expected to be down between 23% and 28% year-over-year, while preliminary organic sales are anticipated to be down between 21% and 26%. The company also noted a decline in gross margin YoY.
Clorox expects ongoing, but lessening, operational impacts in the second quarter as it works towards returning to normalized operations.
They are currently assessing the impact of the cybersecurity attack on fiscal year 2024 and beyond and plan to report full results in November.
Investors are obviously concerned that the cybersecurity attack on Clorox has not only exposed vulnerabilities in the company's IT systems but may also require additional costs to rectify.
Several Lawmakers, including Ro Khanna, Tommy Tuberville, and Shelley Moore Capito, were mostly selling CLX shares this year. The stock is down 8.4% year-to-date.
