disruptpress efi
Business

Clorox weighs price increases on products in response to inflationary costs

In this article

Clorox is considering higher shelf prices for its cleaning products as the company confronts inflationary costs.

In an appearance on CNBC Friday, CEO Linda Rendle told Jim Cramer the bleach producer, whose sales accelerated amid the ongoing health crisis, is facing higher costs in inputs like resin and transportation.

“We’ll activate our long-standing cost savings program and ensure that we’re delivering that across our businesses,” she said on “Mad Money.” “We’re looking at price increases, although we’re being very measured and taking that in a category-by-category approach and, of course, we’ll focus on innovation and margin-accretive innovation.”

Rendle, who began leading Clorox in September, is forecasting that the inflationary environment will persist beyond the current quarter. She is expecting some costs to be canceled out as other temporary expenses related to Covid-19 drop off with global economies recovering.

The Federal Reserve said it would not move to combat inflation until the labor market has recovered losses from Covid-19 lockdowns.

“We’re focused on the long term,” Rendle said. “We’re going to manage through this tough cost environment, but we’re confident in our ability to accelerate long-term profitable growth.”

Clorox reported mixed results in its fiscal third-quarter Friday morning. Revenues were flat from a year ago, which comes after four straight quarters of double-digit growth spurred by the pandemic. The stock fell almost 2% to $182.50 during the session.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterFacebookInstagram

Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com

Products You May Like

Articles You May Like

Lack of workers is hurting small businesses’ ability to keep up with demand
Constellation Brands takes stake in Black-owned rosé manufacturer La Fête du Rosé
Seven Steps To Running Your Real Estate Business On Auto-Pilot
From Fickett To Neutra: Mid-Century Perfection Reimagined In Los Angeles
Financial expert Sarat Sethi has this advice for the next generation of Asian-American and Pacific Islander leaders

Leave a Reply

Your email address will not be published. Required fields are marked *