Clorox Company (The)

Good day, ladies and gentlemen, and welcome to the Corp Company Q3 FY26 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question and answer session. If you would like to ask a question, you may press star 1 on your touchstone pad at any time. If anyone should require assistance during the conference, please press the star 0 on your touchstone pad at any time. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Ms. Lisa Berhon, Vice President of Investor Relations for the Clorox Company. Ms. Berhon, you may begin your conference.

Thank you, Jen. Good afternoon, and thank you for joining us. On the call with me today are Linda Rendell, our Chair and CEO, and Luc Bellet, our CFO. Please note that our earnings release and prepared remarks are available on our website at thecloroxcompany.com. Linda will share a few opening comments, and then we'll take your questions. During this call, we may make forward-looking statements, including about our fiscal 2026 outlook. These statements are based on management's current expectations, but may differ from actual results or outcomes. In addition, we may refer to certain non-GAAP financial measures. Please refer to the forward-looking statement section, which identifies various factors that could affect such forward-looking statements, which has been filed with the SEC. In addition, please refer to the non-GAAP financial information section of our earnings release and supplemental financial schedule in the industrial relations section of our website for reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. I'll now turn it over to Linda.

Thank you for joining us today. As we approached fiscal year 2026, we knew it would take a disciplined, phased approach. In the front half of the year, we intentionally focused on implementing and stabilizing our new ERP. That work was foundational to strengthening how we operate, even though we knew it would create some near-term disruption. As we moved into the back half, our focus turned to rebuilding momentum, getting innovation to shelf, and sharpening execution. That sequencing is still the right one, and it remains central to our plan. That said, the pace of improvement has been slower than we expected in some businesses, and as a result, our third quarter results were mixed and fell short of our expectations. We continued to make progress on market share across much of the portfolio, but more gradually than we anticipated in certain categories. Gross margin also came in below expectations driven by higher than expected supply chain costs and delayed cost savings as we deliberately prioritized stabilizing the ERP. Even with those challenges, we remain confident in the path forward. With the ERP implementation now complete, We're better positioned to convert our innovation, investments, and distribution gains into value superiority for our brands and stronger results. Our focus is squarely on execution, delivering the fundamentals, accelerating innovation performance, and finishing the year with momentum as we set up for fiscal year 2027. With that, Luke and I are happy to take your questions.