In a recent financial update, Clorox Co. faced significant stock market repercussions, with shares plunging over 8% daily. This decline was driven by a cyberattack the company experienced in August, which pronounced affected its sales and profits for the subsequent quarter.
This isn’t the only setback the company has faced recently. In the broader picture, Clorox’s stock value has seen a considerable dip, reaching a 52-week low and marking a decline of more than 13% over the year.
While Clorox has managed to contain the damaging cyberattack, the aftermath is still being felt. The hack was severe enough to disrupt their production line drastically, and while operations are on the mend, there are ongoing repercussions.
In light of these challenges, financial services firm Raymond James took action, downgrading Clorox’s stock performance status to ‘market perform.’ This decision was mainly influenced by the evident impact of the cyberattack on the company’s operations.
Further compounding Clorox’s challenges, Raymond James shed light on a potentially gloomy financial forecast. The firm highlighted the increasing trend of consumers leaning towards more price-conscious choices and the looming rise in commodity costs. Both of these factors could hinder a swift financial recovery for the company.
Recent financial projections from Clorox are stark. The company expects its sales for the quarter ending September 30 to plummet between 23% to 28%. The gross margin is also anticipated to be lower than last year’s corresponding period. Investors are bracing for a blow, with Clorox forecasting a per-share loss between 35 and 75 cents. After adjustments, the projected loss could be up to 40 cents a share.
The full impact of the cyberattack on Clorox’s annual performance remains to be seen. However, this incident underscores the growing importance of cybersecurity measures for corporations in the modern digital age.
