Back to top

Image: Bigstock

Clorox's Innovation Strategy Elevates Everyday Essentials

Read MoreHide Full Article

Key Takeaways

  • Clorox drives growth with premium products like Scentiva and the upgraded ToiletWand in 3Q25.
  • CLX balances premiumization with value packs to serve both affluent and budget-conscious consumers.
  • Clorox backs innovation with R&D, digital tools, and selective marketing to support margin expansion.

Innovation sits at the core of The Clorox Company’s (CLX - Free Report) strategy to remain competitive in a category dominated by global giants and cost-effective private labels. It focuses on consumer-centric innovation, wherein improvements in performance, sensory appeal and convenience are key levers. In third-quarter 2025, Clorox highlighted the success of several premium products such as Scentiva disinfecting sprays, the upgraded ToiletWand and odor-control litter, all designed to command a premium while meeting real, evolving consumer needs. This strategy aligns with the company’s belief that consumers are still willing to pay more for products that deliver superior value per use.

Clorox’s approach to innovation is both bifurcated and realistic. On one hand, the company is leaning into premiumization across categories to differentiate from private label. On the other hand, it is expanding price-pack architecture to provide budget-conscious consumers with flexible options, such as smaller entry-price packs and value sizes for club and mass channels. Clorox has been disciplined in its promotional strategy, choosing to support innovation through targeted marketing and selective discounting rather than broad-based price cuts. This dual approach allows the company to protect margins while defending its share across income segments and competitive environments.

Looking ahead, Clorox remains committed to investing in R&D, supported by tools like its digital transformation and upcoming ERP system upgrade, which will enable more agile innovation and supply chain responsiveness. Despite current market headwinds and volatility in consumer spending, the company sees innovation as a key driver of long-term growth and margin expansion. Clorox’s track record of delivering trustworthy, high-performing products in essential categories uniquely positions it to win in both up and down cycles, provided the company continues to innovate where it matters most to consumers.

Clorox’s Competitors in Innovation: PG,CL & CHD's Smart Moves

The Procter & Gamble Company (PG - Free Report) , Colgate-Palmolive Company (CL - Free Report) and Church & Dwight Co., Inc. (CHD - Free Report) are the key consumer staple companies competing with Clorox in the global arena.

Procter & Gamble uses a smart strategy when it comes to innovation. The company keeps improving its popular brands like Tide, Febreze and Mr. Clean by adding new features, better scents or easier packaging. At the same time, PG gives shoppers different choices depending on their budget.

Colgate focuses on value-driven innovation, especially in home care and personal hygiene. The company regularly updates products with new scents, improved cleaning formulas and convenient packaging. Colgate also invests in sustainability, such as recyclable bottles and concentrated products. Its innovation is often designed to meet the needs of both budget-conscious and environmentally aware consumers.

Church & Dwight is a key competitor to Clorox, known for its value-focused and niche household brands like OxiClean and Arm & Hammer. The company emphasizes cost-effective innovation, often targeting specific consumer needs with affordable, functional products. CHD competes directly with Clorox in laundry additives, cleaning sprays, and baking soda-based solutions.

CLX’s Price Performance, Valuation & Estimates

Clorox shares have lost 25.5% year to date compared with the industry’s growth of 2.2%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

From a valuation standpoint, CLX trades at a forward price-to-earnings ratio of 18.0X, significantly below the industry’s average of 20.23X.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for CLX’s 2025 earnings implies year-over-year growth of 14.9%, whereas its 2026 earnings estimate suggests a year-over-year decline of 5.4%. The estimates for 2025 and 2026 have been unchanged in the past 30 days.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

CLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Published in