The Clorox Company stock research
FY2025 Q2
The Clorox (CLX) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit declined from both the prior quarter and the same quarter one year earlier. Gross margin weakened sequentially but improved compared to the year-ago period, reflecting differing changes in the relationship between cost of revenue and revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q2
Revenue and gross profit declined from both the prior quarter and the same quarter one year earlier. Gross margin weakened sequentially but improved compared to the year-ago period, reflecting differing changes in the relationship between cost of revenue and revenue.
- The relative movement of cost of revenue and revenue is the primary observable factor. Sequentially, cost of revenue declined while revenue also declined, but the margin fell; year-over-year, both declined but the margin rose.
- Versus the prior quarter, revenue was lower, gross profit was lower, and cost of revenue was lower, but the margin weakened. Versus the year-ago quarter, revenue, gross profit, and cost of revenue were all lower, yet the margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.8%
Gross profit
$738.0M
Revenue
$1.7B
Cost of revenue
$948.0M
Quarter-over-quarter change
-2.0 pts
Year-over-year change
+0.3 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, 2024 | $1.8B | $766.0M | $1.0B | 42.2% |
| Jun 30, 2024 | $1.9B | $884.0M | $1.0B | 46.5% |
| Sep 30, 2024 | $1.8B | $807.0M | $955.0M | 45.8% |
| Dec 31, 2024 | $1.7B | $738.0M | $948.0M | 43.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-2.0 pts
Year-over-year change
Dec 31, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relative movement of cost of revenue and revenue is the primary observable factor. Sequentially, cost of revenue declined while revenue also declined, but the margin fell; year-over-year, both declined but the margin rose.
Versus the prior quarter, revenue was lower, gross profit was lower, and cost of revenue was lower, but the margin weakened. Versus the year-ago quarter, revenue, gross profit, and cost of revenue were all lower, yet the margin improved.
Monitor the trajectory of cost of products sold relative to net sales, as it is the primary determinant of gross margin changes.