Clorox(CLX) share price fell in extended trading on Wednesday following a pessimistic outlook.

The Oakland-based company posted EPS in line with expectations while revenue missed expectations.

Due to higher commodity and freight costs, gross margins remained flat at 37.1%.

From 43.6% to 35.8%, the gross margin dropped 780 basis points.

The market focused mostly on the company's earnings and sales forecasts for the full year after hours.

Net sales are expected to fall 4% to 2% from the prior year, and sales will drop 3% to 3% from the previous year.

According to estimates, adjusted EPS will decline between $3.85 and $4.22 in 2023, a decline of 6% to an increase of 3%.

An optimistic estimate predicts an increase of 200 basis points in gross margins.

Immediately after the print, consumer staples shares fell over 7%.

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