CL

The Clorox Company stock research

Jun 30, 2024

FY2024 Q4

The Clorox (CLX) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both rose compared to the immediately preceding quarter, while cost of revenue remained stable, leading to an improved gross margin. Relative to the same quarter one year earlier, revenue was lower and cost of revenue was also lower, resulting in a higher gross profit and a strengthened gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q4

Revenue and gross profit both rose compared to the immediately preceding quarter, while cost of revenue remained stable, leading to an improved gross margin. Relative to the same quarter one year earlier, revenue was lower and cost of revenue was also lower, resulting in a higher gross profit and a strengthened gross margin.

  • Gross profit growth outpaced revenue growth sequentially, as cost of revenue did not increase proportionally, which was the strongest observable factor supporting margin expansion.
  • Compared to the prior quarter, gross margin improved, driven by higher revenue and gross profit with stable cost of revenue. Versus the same quarter last year, gross margin also strengthened, as revenue declined less proportionally than cost of revenue.

Gross margin snapshot

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

Gross margin

46.5%

Gross profit

$884.0M

Revenue

$1.9B

Cost of revenue

$1.0B

Quarter-over-quarter change

+4.2 pts

Year-over-year change

+3.8 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$1.4B$532.0M$854.0M38.4%
Dec 31, 2023$2.0B$866.0M$1.1B43.5%
Mar 31, 2024$1.8B$766.0M$1.0B42.2%
Jun 30, 2024$1.9B$884.0M$1.0B46.5%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+4.2 pts

Year-over-year change

Jun 30, 2023

+3.8 pts

What the margin says

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

Gross profit growth outpaced revenue growth sequentially, as cost of revenue did not increase proportionally, which was the strongest observable factor supporting margin expansion.

Compared to the prior quarter, gross margin improved, driven by higher revenue and gross profit with stable cost of revenue. Versus the same quarter last year, gross margin also strengthened, as revenue declined less proportionally than cost of revenue.

Monitor whether cost of revenue remains stable relative to revenue, as it was the key variable in the current quarter's margin improvement.

CLX Gross Margin — Quarter Ended Jun 30, 2024