CL

The Clorox Company stock research

Mar 31, 2023

FY2023 Q3

The Clorox (CLX) Gross Margin — Quarter Ended Mar 31, 2023

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue remained steady sequentially and declined year-over-year. Consequently, gross profit rose and gross margin improved.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q3

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue remained steady sequentially and declined year-over-year. Consequently, gross profit rose and gross margin improved.

  • The margin improvement was driven by the increase in revenue alongside a cost of revenue that did not rise proportionally, resulting in a higher gross profit.
  • Revenue and gross margin were higher than both the immediately preceding quarter and the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

41.8%

Gross profit

$800.0M

Revenue

$1.9B

Cost of revenue

$1.1B

Quarter-over-quarter change

n/a

Year-over-year change

+5.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.9B$800.0M$1.1B41.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

+5.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The margin improvement was driven by the increase in revenue alongside a cost of revenue that did not rise proportionally, resulting in a higher gross profit.

Revenue and gross margin were higher than both the immediately preceding quarter and the same quarter one year earlier.

Monitor the trajectory of cost of revenue relative to revenue, and the effects of the company's restructuring and digital investments mentioned in the filing.