Clorox shares tumbled on Friday after Chair and CEO Linda Rendle said she will step down for "health reasons," prompting the board to begin a search for her replacement.
"Rendle will also serve in an advisory role for a period following the appointment to drive business performance and a smooth leadership transition," Clorox wrote in a press release.
Rendle wrote in a statement, "Serving as CEO of Clorox for the past six years—and being part of this special company for more than two decades—has truly been the privilege of my career."
Under Rendle's six-year tenure, Clorox shares have fallen from grace, down a staggering 57%.
Here's what Wall Street analysts are saying, courtesy of Bloomberg:
TD Cowen (hold, PT $90)
Analyst Robert Moskow says the announcement reinforces concerns about execution missteps amid CLX's plans to modernize its enterprise resource planning software and launch new products, particularly restaging cat litter."
- "We expect the company to guide below consensus for FY27."
BNP Paribas (neutral, PT $97)
Analyst Kevin Grundy says CLX's next CEO will inherit a host of challenges, including worsening business performance, volatility in delivery, and subdued category growth.
"Former and now retired CEO of CHD, Matt Farrell, is very unlikely, but would be a home run for CLX's shareholders"
So, did Rendle actually step down for "health reasons," or was it because investors had lost confidence in the turnaround timeline?