Clorox weighs product price increases in response to inflationary costs
Clorox is considering higher shelf prices for its cleaning products as the company faces inflationary costs.
Speaking to Jim Cramer in an appearance on CNBC Friday, CEO Linda Rendle told Jim Cramer that the bleach maker, whose sales have accelerated amid the ongoing health crisis, is facing higher costs for supplies such as resin and transportation.
“We will activate our long-term cost savings program and ensure that we implement this in all areas of the business,” she told Mad Money. “We are seeing price increases although we are very measured and take a category-wise approach, and we will of course focus on innovation and margin-enhancing innovation.”
Rendle, who has headed Clorox since September, predicts that the inflationary environment will persist beyond the current quarter. She expects some costs to be cut as other temporary expenses related to Covid-19 decline and the global economy recovers.
The Federal Reserve said it would not act to fight inflation until the labor market recovers losses from Covid-19 lockdowns.
“We are geared towards the long term,” said Rendle. “We will manage this difficult cost environment, but we are confident that we can accelerate long-term profitable growth.”
Clorox reported mixed results for the third quarter of its fiscal year on Friday morning. Revenue was unchanged from a year earlier, driven by four-quarters of the double-digit growth sparked by the pandemic. The stock fell nearly 2% to $ 182.50 during the session.