Shares of Clorox Company (NYSE: CLX) plunged 5.15% in pre-market trading on Tuesday, following the company's fiscal second-quarter 2025 earnings release. The household products maker reported weaker-than-expected results and lowered its full-year guidance, citing a challenging consumer environment and increased competitive activity.

For the quarter ended December 31, 2024, Clorox posted revenue of $1.69 billion, down 15% year-over-year and missing analysts' estimates of $1.75 billion. The company attributed the decline to divestitures, foreign exchange headwinds, and the impact of a major retailer shifting orders forward in the previous quarter.

Earnings per share (EPS) for the quarter came in at $1.07, below the consensus estimate of $1.14. Clorox cited higher trade spending and increased promotional activity in its Glad trash category as factors weighing on profitability.

Based on the weaker-than-anticipated performance, Clorox lowered its full-year sales guidance to a decline of 1% to 2%, compared with its previous forecast of flat to down 2%. The company also raised the low end of its EPS guidance range to reflect the benefit of a lower tax rate and reduced supply chain inflation, but offset by foreign exchange headwinds and increased trade spending.

In the earnings call, Clorox CEO Linda Rendle acknowledged the challenging consumer environment, with consumers exhibiting value-seeking behavior and trading down in certain categories. However, she expressed confidence in the company's ability to drive growth through innovation, brand-building, and expanding into new markets.