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Clorox Co (CLX) reported a fourth-quarter FY21 sales decline of 9.2% year-on-year, to $1.80 billion, missing the analyst consensus estimate of $1.92 billion.

The fall in sales was driven by the deceleration of shipments from peak levels during the COVID-19 pandemic, including more rapid than expected deceleration in the Health and Wellness segment.

Revenues from Health and Wellness fell 17% Y/Y, Household fell 8% Y/Y, Lifestyle decreased 3%, and International grew 5%.

Gross profit declined 28.1% Y/Y to $668 million and Q4 gross margin contracted by 970 basis points Y/Y to 37.1%.  Adjusted EBIT margin contracted 1,270 basis Y/Y points to 8.4%. EPS of $0.95 missed the analyst consensus of $1.36.

Clorox generated $1.3 billion in operating cash flow, down from $1.55 billion a year ago, and free cash flow of $945 million. It held $319 million in cash and equivalents.

“The fiscal year 2021 was an extraordinary year for Clorox, with the pandemic putting us through the test of volatility, including rapid changes in consumer demand and inflationary pressure, which is reflected in our fourth-quarter results,” said CEO Linda Rendle.

Outlook: Clorox sees FY22 adjusted EPS of $5.40 - $5.70, well below the consensus of $7.67. The company expects a 2%-6% decline in FY22 sales.

Price action: CLX shares are trading lower by 8.60% at $165.62 in premarket on the last check Tuesday.