The Clorox Company (CLX): BCG Matrix [Dec-2025 Updated]

You're looking at The Clorox Company's portfolio through the lens of the BCG Matrix, and the picture for late 2025 is quite clear: the Health and Wellness segment is the engine, growing 8.53% to $2.69 billion, firmly planting it as a Star, while established brands like Glad keep the lights on as solid Cash Cows generating $2.00 billion. Still, we've seen some tough calls, with the International segment shrinking to $1.06 billion and being flagged as a Dog, alongside the recent shedding of the VMS business. The real action, though, is with the Question Marks like Brita, which saw a massive 40% Q1 sales jump off a low base, showing defintely where the next big investment fight will be-dive into the details below to see where you should be placing your bets.

Background of The Clorox Company (CLX)

You're looking at The Clorox Company (CLX) performance through the lens of fiscal year 2025, which concluded on June 30, 2025. Honestly, it was a year defined by navigating complexity, including the tail end of the August 2023 cyberattack fallout and getting ready for the big Enterprise Resource Planning (ERP) system switchover in the U.S. Still, the company managed to grow overall market share and organic sales, which is a solid achievement given the environment.

For the full fiscal year 2025, The Clorox Company recorded total net sales of $7.10 billion, which was essentially flat compared to the $7.09 billion from 2024. However, looking deeper, organic sales-that's sales without counting divestitures or currency shifts-actually climbed 5%. This growth was helped by temporary factors, specifically incremental shipments related to the ERP preparation, which added about 3.5 to 4 points to the net sales figure, a benefit management expects to reverse in fiscal year 2026.

Profitability showed significant improvement. Gross margin expanded by 220 basis points to reach 45.2% for the year, up from 43.0% the year prior, showing strong cost discipline. This operational focus translated to the bottom line, with net income jumping to $810 million, a massive increase from the $280 million reported in fiscal year 2024. Consequently, diluted earnings per share (EPS) finished the year at $6.56, a big jump from $2.26 the year before.

Breaking down the revenue across the main segments gives you a clearer picture of where the sales are coming from. The Health and Wellness segment was a growth driver, bringing in $2.69 billion, marking an 8.53% increase over 2024. The Household segment saw modest growth, contributing $2.00 billion. On the other hand, the International segment faced headwinds, declining to $1.06 billion from $1.16 billion in 2024. The Lifestyle segment was up slightly to $1.30 billion.

Geographically, the story is heavily weighted toward the U.S., which generated $6.08 billion in revenue, a 2.08% increase. Foreign revenue, however, was down nearly 10% to $1.02 billion. The company continues to execute its IGNITE strategy, focusing on its core strengths; for instance, nearly 60% of The Clorox Company's portfolio achieved superior brand value as of June 30, 2025.

The Clorox Company (CLX) - BCG Matrix: Stars

The Star quadrant for The Clorox Company in fiscal year 2025 is clearly anchored by the Health and Wellness segment. This unit is the primary growth engine, demonstrating robust top-line performance in a market environment where overall organic sales growth for The Clorox Company was 5% for FY2025.

The Health and Wellness segment posted net sales of $2.69 billion for the fiscal year ending June 30, 2025. This represents a significant year-over-year growth rate of 8.53%, making it the fastest-growing reported segment. This segment's performance is critical, as it directly contributes to the company's overall 5% organic sales growth for FY2025.

The high market share requirement for a Star is met by the strength of the core brands within this segment. The core Clorox Cleaning and Disinfecting products benefit from sustained elevated hygiene awareness. Overall, The Clorox Company reports that about 80% of its brands hold the No. 1 or No. 2 position in their respective categories, indicating strong market leadership that fuels this growth.

The segment composition itself highlights the Star nature of its components. The Health and Wellness segment includes both the core Cleaning brands and the Professional Products arm. The Professional Products business, while a smaller part of the total revenue mix, is a high-growth B2B component that naturally requires significant investment to capture expanding market share, typical of a Star needing cash to maintain its high-growth trajectory.

Here's a look at the segment revenue contribution for FY2025:

The strategy here is to continue funding this segment aggressively. You need to ensure promotional and placement support keeps pace with the market growth rate of 8.53% for Health and Wellness. The goal is to solidify the market leadership of brands like Clorox Cleaning so that when the high-growth phase inevitably slows, this unit transitions into a powerful Cash Cow.

Key investment areas supporting the Star status include:

• Sustaining high advertising and sales promotion spending to reinforce brand equity.
• Investing in the Professional Products B2B expansion for future cash flow generation.
• Driving innovation across major brands, supported by digital core acceleration.

The company is actively investing in its brands, which is the correct BCG strategy for a Star. For instance, advertising and sales promotion spending was maintained at 11% to 11.5% of net sales for the year, reflecting this commitment to brand support.

The Clorox Company (CLX) - BCG Matrix: Cash Cows

You're analyzing the core profit engine of The Clorox Company, the segment that reliably funds the rest of the portfolio. These are the brands that dominate mature categories, meaning they don't require massive spending to maintain their position, so they generate significant free cash flow for the enterprise.

The Household segment is a prime example of this, representing $\text{28.3% of the company's total $\text{FY2025$ revenue, which amounted to $\text{$7.10 billion$ for the fiscal year ending June 30, 2025. This segment pulled in $\text{2.00 billion$ in revenue for $\text{FY2025$. This revenue base is supported by the fact that about $\text{80% of The Clorox Company's brands are $\text{No. 1$ or $\text{No. 2$ in their respective categories.

Within this segment, Glad trash bags and food storage are market leaders. The strategic move to fully acquire $\text{Procter \& Gamble's$ remaining $\text{20% interest in the $\text{Glad$ bags and wraps joint venture, effective $\text{January 31, 2026$, solidifies The Clorox Company's control over this consistent cash generator. Distribution for the $\text{Glad$ brand has been fully recovered following prior operational disruptions.

Kingsford charcoal maintains its near-monopoly status in the grilling category, a highly seasonal market that typically requires less sustained, year-round promotional spend compared to other categories. While the brand experienced a 'bad quarter' for the period ending $\text{June 30, 2025$, and saw a 'timing shift in shipments' in Q3 $\text{FY2025$, its established category leadership allows for lower relative investment to maintain market share. The Household segment also includes the $\text{Fresh Step$, $\text{Scoop Away$, and $\text{Ever Clean$ cat litter brands.

These mature brands provide the necessary capital to fund the company's growth initiatives. For instance, this cash flow supports the commitment to shareholders, evidenced by the declared quarterly dividend of $\text{$1.24$ per share in the latter half of $\text{2025$.

Here is a snapshot of the key financial figures related to this Cash Cow segment as of $\text{FY2025$:

The operational focus for these assets remains on efficiency and maintaining market presence, not aggressive expansion. You should expect investments here to center on infrastructure improvements, like the ongoing $\text{ERP$ transition, rather than heavy advertising, though $\text{11% to $\text{11.5% of net sales was allocated to advertising and sales promotion spending overall in $\text{FY2025$.

• Household segment revenue: $\text{2.00 billion$.
• Glad distribution fully recovered in $\text{2025$.
• Kingsford shipment timing shift noted in Q3 $\text{FY2025$.
• Total $\text{FY2025$ net sales: $\text{7.10 billion$.

The Clorox Company (CLX) - BCG Matrix: Dogs

You're looking at the units that aren't pulling their weight, the ones tying up capital without delivering much back. That's the essence of a Dog in the BCG Matrix for The Clorox Company as of fiscal year 2025.

The International segment definitely fits this profile, showing clear signs of being a Dog. For the full fiscal year 2025, this segment's revenue declined to $1.06 billion. To be fair, the segment organic sales actually grew 2% excluding Argentina and foreign exchange effects in Q3 FY2025, but the overall top-line pressure and operational headwinds keep it in this low-growth, low-share quadrant.

The strategic move to shed the Argentina business, which was divested in Q3 of fiscal year 2024, is a classic action to remove a low-share asset that was causing drag. That divestiture resulted in a one-time, after-tax charge of approximately $233 million in Q3 FY2024. The lingering effect on the FY2025 outlook was a negative impact of about 2 points on net sales. It's about cutting loose the low-return exposure, defintely.

Consider the Fresh Step cat litter brand within the Litter category. While innovation, like the Clean Paws launch, has happened, execution missteps and competitive intensity are evident. For instance, in the fourth quarter of fiscal year 2025, the entire Litter segment saw net sales decrease 11%, driven by lower volume. Segment adjusted EBIT for Litter also decreased 18% in that quarter. The Clorox Company's overall estimated share in the USA & Canada Cat Litter Market for 2025 is in the 15-18% range, suggesting that even established brands face market share pressure in this mature space.

The divestiture of the Vitamins, Minerals, and Supplements (VMS) business was a clear-cut removal of a Dog. The company completed this sale in the first quarter of fiscal year 2025. This business, which included brands like Natural Vitality and NeoCell, represented approximately 3% of The Clorox Company's fiscal year 2024 net sales. Removing it was intended to structurally improve margin and reduce volatility, which is exactly what you do with a Dog asset.

Here's a quick look at how these portfolio moves impacted the segments in FY2025:

Dogs require careful management because they can become cash traps, consuming resources for minimal return. The actions taken, like the VMS sale and the Argentina exit, show The Clorox Company is actively pruning these areas to focus on Stars and Cash Cows. You want to see minimal capital tied up here.

• Avoid expensive, long-shot turn-around plans.
• Prime candidates for divestiture or harvest.
• Frequently break even, consuming little cash.
• International segment revenue at $1.06 billion in FY2025.

Finance: review the cash flow impact from the VMS divestiture versus the expected savings from the Argentina exit by next Tuesday.

The Clorox Company (CLX) - BCG Matrix: Question Marks

You're looking at the brands in The Clorox Company (CLX) portfolio that are fighting for a bigger piece of a growing pie. These are the Question Marks, requiring significant cash investment to move them into the Star quadrant, but they risk falling back into Dogs if they don't gain traction quickly.

The Lifestyle segment, which houses brands like Brita and Burt's Bees, fits this profile. While core cleaning brands maintain dominance, these lifestyle offerings are in categories showing strong expansion potential. For instance, the segment saw net sales jump 40% year-over-year in the first quarter of fiscal year 2025, reaching $320 million in that period. However, this growth was on a lower base, and the segment's performance is inherently volatile, as seen when its net sales subsequently decreased by 23% in the first quarter of fiscal year 2026 compared to the prior year.

Consider Brita water filtration. The global water filter market itself is projected to grow from USD 10.05 billion in 2023 to USD 14.97 billion by 2029, representing a Compound Annual Growth Rate (CAGR) of 6.87%. This confirms the high-growth environment. To compete against established players in this space, The Clorox Company must commit substantial resources to advertising and innovation to capture meaningful share. This investment directly impacts cash flow; for example, advertising and sales promotion spending was budgeted to be about 11% to 11.5% of net sales for fiscal year 2025.

Hidden Valley Ranch, though a powerful brand name, represents a smaller revenue contributor relative to the largest categories and requires sustained investment to broaden its reach beyond its established dressing market. The high-risk, high-reward nature of this quadrant is evident when comparing the segment's financial output. The segment-adjusted Earnings Before Interest and Taxes (EBIT) grew 247% in Q1 2025, fueled by that 40% sales surge. But when the top-line momentum slowed in Q1 2026, the Adjusted Earnings Per Share (Adjusted EPS) for the entire company dropped sharply to $0.85 from $1.86 in Q1 2025, illustrating how quickly Question Marks can become cash drains without rapid market share gains.

Here is a snapshot illustrating the cash consumption and performance volatility within this group:

The strategy here is clear: either inject the capital needed to achieve rapid market share growth, turning these into future Stars, or divest them to stop the cash burn. The Clorox Company must decide which of these brands warrants the heavy investment required to secure a dominant position in their respective growing markets.

• Invest heavily to gain market share quickly.
• Sell if growth potential is deemed too low.
• Consume significant cash flow for marketing.
• Risk becoming Dogs if market share stalls.