With an Eye on Driving Efficiencies, Clorox Should Possess the Fuel to Fund Continued Brand Spending

The fruits of Clorox's work to put pronounced inflationary headwinds and supply chain angst to rest were sidelined as a cybersecurity breach in mid-August 2023 forced it to take some information technology systems (including ordering) offline. Although this initially strangled sales and profits, we don’t surmise the firm’s competitive edge has been eroded. On the contrary, we think its entrenched standing with retailers will continue to enable it to build back its shelf position, similar to its inventory revival coming out of the pandemic.