Clorox

The business has demonstrated ability to take pricing and restore margins following the inflation shock. FY2025 gross margin reached 45.2 percent, up 220 basis points year over year on cost savings and mix. The company plans continued brand support at roughly 11 percent of net sales to reinforce willingness to pay.

That said, categories like bags/wraps, litter and dressings face private-label pressure, limiting infinite pricing. The Q1 FY2026 gross margin dip to 41.7 percent was tied to ERP-related volume deleverage and manufacturing/logistics costs, not structural loss of pricing.

Net, we view realized pricing and productivity as sufficient to defend mid‑40s gross margin, with ongoing elasticity risk in more commoditized lines.