Our fiscal year 2022 second-quarter results reported today demonstrate the difficult cost environment we continue to operate in, but they also show we’re executing well on the things we can control: taking strategic pricing actions, driving cost savings while restoring supply and advancing our consumer-centric innovation pipeline. Demand remains robust across our portfolio, and our brand superiority results are better than during the height of the pandemic.
Net sales in the second quarter decreased 8% to $1.7 billion compared to 27% growth in the year-ago period, resulting in a two-year stack of 19% growth. Adjusted EPS decreased 67% to $0.66 driven by higher manufacturing and logistics and commodity costs, partially offset by our pricing actions and cost savings.
Although we expect this elevated cost environment to persist through fiscal 2022, and have adjusted our outlook as a result, we’re confident we have the right strategy and are taking the right actions to successfully navigate these challenges and sustain top-line momentum. We remain laser focused on rebuilding margin and driving profitable growth, and we’re continuing to make progress on our priorities:
- We grew market share in the majority of our businesses, including a second straight quarter of double-digit share increase for disinfecting wipes, driven by strong demand-building plans and continued progress in restoring supply across our portfolio.
- Our brands are stronger today than during the height of the pandemic. In fact, 75% of our brands are a superior value as measured by our consumer value metric, a record high. In addition, household penetration remains very strong for our brands.
- To mitigate rising costs, we’re taking several actions:
- We accelerated pricing on the vast majority of our portfolio, including multiple rounds on select brands. We are well positioned to execute additional pricing across our portfolio due to the strength of our brands, supported by our record consumer value metric.
- We’re optimizing our supply chain by working to remove many of the costs that were incurred as we increased supply chain resiliency during the pandemic.
- We widened the funnel of cost savings opportunities as part of our IGNITE strategy and are on track to achieve another year of strong cost savings.
- We continued to advance our multiyear innovation pipeline and launched three new innovations in the quarter that support consumer well-being and the company’s ESG commitments: Clorox® disinfecting mists with reusable sprayer and refills, Clorox® multipurpose cleaner in a concentrated form with a refillable container, and Glad® ForceFlexPlus trash bags with Cherry Blossom scent.
In short, the fundamentals of our business are strong. Our portfolio is exposed to demand-driven tailwinds, including heightened consumer focus on health and wellness, prioritization of the home, digital adoption, and increased pet ownership. We expect all of this will create long-term opportunities for our business.
In addition, we continue to invest for the long term while delivering on our ESG commitments. This includes accelerating our digital transformation, which will strengthen our core capabilities around supply chain, digital commerce, innovation and brand-building. I’m confident the execution of our IGNITE strategy, coupled with the actions we’re taking, will strengthen our competitive position, build a stronger, more resilient company, and generate long-term shareholder value.
Finally, I want to thank my Clorox teammates worldwide for their continued resilience and dedication to living our purpose and serving our consumers, customers, and communities throughout this pandemic, every day.