CL

The Clorox Company stock research

Jun 30, 2023

FY2023 Q4

The Clorox (CLX) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both rose, while cost of revenue also increased. Gross margin improved, reflecting that gross profit grew faster than revenue.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q4

Revenue and gross profit both rose, while cost of revenue also increased. Gross margin improved, reflecting that gross profit grew faster than revenue.

  • The strongest observable margin driver is the combined movement of revenue and cost of revenue, where gross profit growth outpaced revenue growth, leading to an expanded gross margin.
  • Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher.

Gross margin snapshot

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

Gross margin

42.7%

Gross profit

$862.0M

Revenue

$2.0B

Cost of revenue

$1.2B

Quarter-over-quarter change

+0.9 pts

Year-over-year change

+5.6 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%
Jun 30, 2023$2.0B$862.0M$1.2B42.7%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+0.9 pts

Year-over-year change

Jun 30, 2022

+5.6 pts

What the margin says

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

The strongest observable margin driver is the combined movement of revenue and cost of revenue, where gross profit growth outpaced revenue growth, leading to an expanded gross margin.

Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher.

Monitor whether the favorable relationship between revenue and cost of revenue continues to support gross margin improvement in future periods.