“Clorox Takes a Hit: Shares Drop Over 5% Following August Cyberattack
In a tumble that echoed through Wall Street, Clorox shares slipped more than 5% on Thursday, reacting to the aftermath of a cyberattack in August that dealt a significant blow to the company’s sales and profits in the previous quarter.
The stock plunged to a 52-week low, marking a decline of over 11% since the beginning of the year. Despite the Pine-Sol and bleach giant containing the cyber intrusion that severely disrupted its production, the repercussions persist as operations strive to return to normalcy.
Raymond James added to the woes by downgrading Clorox to ‘market perform’ on Thursday morning, underlining the unexpectedly substantial impact the cyberattack had on the company. The financial giant expressed skepticism about a swift recovery for the stock, considering the current landscape where consumers are making more budget-conscious choices, coupled with a rise in commodity costs.
In a post-bell announcement on Wednesday, Clorox stated that it anticipates reporting a sizable 23% to 28% decline in sales for the quarter ending September 30th. Additionally, the company foresees a dip in gross margin compared to the same period last year and expects to incur a per-share loss ranging from 35 cents to 75 cents. On an adjusted basis, the projected loss could be as high as 40 cents per share.”
