Clorox (NYSE:CLX) shares experienced a more than 8% drop intra-day today following the company’s announcement of a cybersecurity breach.
Due to this security incident, Clorox is projecting a substantial decrease in Q1 net sales, ranging from 28% to 23% compared to the same quarter in the previous year. Organic sales are also expected to decline, with an estimated drop of 26% to 21% for the quarter. The cybersecurity attack has led to significant disruptions, including delays in processing orders and shortages of products.
The company now anticipates an adjusted EPS within the range of a loss of $0.40 to break even. This stands in contrast to its previous expectations of an increase in gross margin, as Clorox now foresees a lower gross margin compared to the same quarter in the prior year.
Regarding the situation, Clorox stated that it expects ongoing operational challenges in the second quarter but believes these disruptions will gradually diminish as the company progresses toward a return to normal operations.