11.02.20 - It feels as if it’s been a lifetime since the pandemic initially hit American shores, but as coronavirus cases rise again, many people are still wiping down surfaces like crazy and that's continuing to boost sales for Clorox.
Clorox recently reported earnings for its fiscal first quarter that topped Wall Street's forecasts and also boosted the company’s overall outlook. Overall sales are up 27% from a year ago and Clorox reported double-digit increases in eight of its 10 business units because of Covid-19 and people spending more time at home. In response to the earnings report, shares of Clorox rose nearly 4%, and the stock is now up more than 35% this year overall.
People are using Clorox's disinfectant products to clean household surfaces, cell phones and laptops but the company is also benefiting from people cooking more at home instead of going out. Clorox also owns the plastic bag brand Glad and the charcoal line Kingsford. Sales for Clorox's household division, the unit that includes these products, soared 39% compared to last year.
The demand for Clorox wipes and other disinfectant products has been so strong that the company is currently facing a shortage of its disinfecting products, leaving them scrambling to meet consumer demand - and the company expects this to last until 2021.
Source: Wall Street Journal