Clorox shares slide after company says cyberattack hit sales hard

Key Points
  • Clorox shares fell after the company said a cyberattack disclosed in August significantly hurt sales in the prior quarter.
  • Raymond James also downgraded Clorox, saying it doesn't expect a recovery in the stock in the short term.

In this article

Clorox disinfecting wipes are seen displayed for sale at a Walmart Supercenter in Austin, Texas, on Sept. 18, 2023.
Brandon Bell | Getty Images

Shares of Clorox fell more than 5% Thursday, a day after the company said an August cyberattack significantly weighed on sales and profits during the prior quarter.

The stock hit a 52-week low and is down more than 11% so far this year.

While the Pine-Sol and bleach maker said it had contained the hack, which severely hampered its production, it said it continues to deal with the fallout even as its operations gradually get back to normal.

Raymond James also downgraded the stock to market perform Thursday morning, citing the larger-than-expected material effect the attack had on the company.

Raymond James said it struggles "to see a recovery in the stock near-term, as it would be based on a view of a quick sales and profit bounce back from the attack during a period in which consumers appear to be making more price conscious choices and as commodity costs start to move upward again."

Clorox said after the bell Wednesday that it expects to report a 23% to 28% decline in sales during the quarter that ended Sept. 30.

Clorox also said it estimates its gross margin for the quarter will be down from the year-ago period. It expects to post a per share loss of 35 cents to 75 cents. On an adjusted basis, it projects a loss of up to 40 cents a share.