By Ben Glickman
Clorox, the Oakland-based consumer products company, is anticipating a significant decrease in sales during the fiscal first quarter following a disruptive cybersecurity attack.
Preliminary results indicate a sales decline of 23% to 28% compared to the previous year, contrary to the expectations of analysts polled by FactSet who predicted an increase in sales.
The cyber attack, which was already disclosed in August, caused disruptions in order processing and led to outages. Clorox reported that pre-attack trends were aligned with their expectations.
Furthermore, there is an estimated organic sales decline of 21% to 26%, compared to the earlier forecast of mid-single-digit growth.
As a result, the company now expects a loss per share ranging from 35 cents to 75 cents, whereas analysts anticipated a profit of $1.18 per share according to FactSet.
Clorox foresees "ongoing, but lessening" operational impacts from the attack throughout the second quarter, which commenced on October 1st.
In order to restock retailer inventories, Clorox is currently in the process of transitioning back to automated order processing, which will allow for increased production.
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