The Clorox Company stock research
FY2025 Q3
The Clorox (CLX) Gross Margin — Quarter Ended Mar 31, 2025
Gross margin improved compared to both the prior quarter and the same quarter a year earlier, driven by a lower cost of revenue relative to net sales. Revenue was stable sequentially but declined year over year, while gross profit increased sequentially but decreased year over year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q3
Gross margin improved compared to both the prior quarter and the same quarter a year earlier, driven by a lower cost of revenue relative to net sales. Revenue was stable sequentially but declined year over year, while gross profit increased sequentially but decreased year over year.
- The strongest observable driver of the gross margin improvement is the reduction in cost of revenue relative to net sales. Both sequentially and year over year, cost of revenue declined at a faster rate than net sales.
- Sequentially, revenue remained stable, gross profit increased, and cost of revenue decreased, resulting in a higher gross margin. Compared to the same quarter a year ago, revenue and gross profit were lower, but cost of revenue decreased more significantly, leading to an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.6%
Gross profit
$744.0M
Revenue
$1.7B
Cost of revenue
$924.0M
Quarter-over-quarter change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $1.7B | $744.0M | $924.0M | 44.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.8 pts
Year-over-year change
Mar 31, 2024
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin improvement is the reduction in cost of revenue relative to net sales. Both sequentially and year over year, cost of revenue declined at a faster rate than net sales.
Sequentially, revenue remained stable, gross profit increased, and cost of revenue decreased, resulting in a higher gross margin. Compared to the same quarter a year ago, revenue and gross profit were lower, but cost of revenue decreased more significantly, leading to an improved gross margin.
Monitor the trajectory of cost of revenue relative to net sales, as its reduction has been the primary factor behind the margin improvement.