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

Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue also declined. Gross profit fell, and gross margin improved from the year-ago period but weakened from the prior quarter.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2024 Q1

The strongest observable margin driver is the change in the ratio of cost of revenue to revenue. This ratio directly influences gross margin.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter last year, revenue was lower but gross margin improved.

Gross margin snapshot

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

Gross margin

38.4%

Gross profit

$532.0M

Revenue

$1.4B

Cost of revenue

$854.0M

Quarter-over-quarter change

-4.3 pts

Year-over-year change

+2.4 pts

Quarterly gross margin trend

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

Period	Revenue	Gross profit	Cost of revenue	Gross margin
Mar 31, 2023	$1.9B	$800.0M	$1.1B	41.8%
Jun 30, 2023	$2.0B	$862.0M	$1.2B	42.7%
Sep 30, 2023	$1.4B	$532.0M	$854.0M	38.4%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-4.3 pts

Year-over-year change

Sep 30, 2022

+2.4 pts

What the margin says

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

The strongest observable margin driver is the change in the ratio of cost of revenue to revenue. This ratio directly influences gross margin.

Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter last year, revenue was lower but gross margin improved.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.