Shares of Clorox (CLX) - Get Free Report dropped sharply Tuesday after the company forecast full-year sales below analysts' estimates due to easing pandemic fears putting a dent in the company's bleaches, wipes and surface cleaners.
Clorox said it expects fiscal 2022 sales to fall in the range of 2% and 6%, compared with estimates that called for a 1% decline.
"As we head into fiscal year 2022, we're laser-focused on operational execution, rebuilding our margins and driving market share improvements in this dynamic environment," said CEO Linda Rendle.
The Oakland, California-based company reported fourth-quarter earnings of 95 cents a share on revenue of $1.8 billion. Analysts were expecting earnings of $1.32 per share on revenue of $1.9 billion.
Clorox reported a 9% sales decrease in the quarter year over year.
Clorox shares dropped 11% to $161.22 in premarket trading Tuesday.
Clorox got a boost during the height of the COVID-19 pandemic as consumers flocked to stores to get cleaning supplies in order to wipe down surfaces that could potentially spread the disease.
However, as infection rates have fallen and the pandemic has subsided the products have become less popular.
Sales in the company's health and wellness division, its biggest unit by sales and the division that makes Clorox disinfecting wipes, fell 17%.
"In the face of a challenging environment, we continued to advance our IGNITE strategy and key priorities, including doubling our innovation investment and delivering over $120 million in cost savings in the fiscal year," Rendle said.