The earnings call reflects a mixed sentiment with significant achievements in margin expansion, market share gains, and successful organizational restructuring. However, challenges such as retail inventory adjustments, weaker demand in some segments, and international market softness present notable headwinds. While the company demonstrates strong operational control and strategic focus, short-term volatility and external pressures balance the overall outlook.

Company Guidance

During Kimberly-Clark's Q3 2024 earnings call, the management provided guidance that highlighted several metrics impacting their performance and outlook. The company experienced an 80 basis point headwind to global net sales year-to-date primarily due to retail inventory reductions, which were attributed to improving service levels and higher financing costs for inventory. Despite these challenges, consumer offtake in North America showed robust growth, with Personal Care and Consumer Tissue segments combined growing at 3.2%, ahead of the category. The exit from certain private label businesses was also noted, which impacted sales, but is expected to decrease private label sales from 4% to 2% of total sales by next year. The management maintained its focus on driving volume and mix-led growth, with organic growth expected to be closer to 3% for the full year. Gross margin for the year was around 37%, supported by productivity savings and a benign input cost environment, with investment in innovation and brand support expected to increase in Q4. The company also reiterated its long-term goal to achieve at least 40% gross margin by 2030, despite some discrete headwinds like weaker demand in certain markets and professional channels.

Gross Margin Expansion

Kimberly-Clark's gross margin expanded to an average of 37% year-to-date, surpassing pre-COVID levels and demonstrating strong operational efficiency.

Market Share and Innovation Success

The company reported progress in market share, particularly in the U.S., and emphasized successful innovation, with products such as Skin Essentials contributing to brand strength and market share gains.

Transformation and Organizational Restructuring

Kimberly-Clark successfully implemented its new organizational structure on October 1, aimed at driving growth and improving efficiency without disruptions.

Strong Consumer Offtake in North America

Consumer offtake in North America was robust, with Personal Care and Consumer Tissue combined growing at 3.2%, outperforming the category.

Private Label Business Exit

The exit from private label businesses, such as a large club private label diaper business in the U.S., is expected to reduce private label sales from 4% to 2% of total sales by next year, focusing capacity on branded products.

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Kimberly Clark (KMB) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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KMB Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 22, 2025	2024 (Q4)	1.51 / -	1.51	―	―	―
Oct 22, 2024	2024 (Q3)	1.70 / 1.83	1.74	5.17% (+0.09)
Jul 23, 2024	2024 (Q2)	1.71 / 1.96	1.65	18.79% (+0.31)
Apr 23, 2024	2024 (Q1)	1.63 / 2.01	1.67	20.36% (+0.34)
Jan 24, 2024	2023 (Q4)	1.54 / 1.51	1.54	-1.95% (-0.03)
Oct 24, 2023	2023 (Q3)	1.59 / 1.74	1.4	24.29% (+0.34)
Jul 25, 2023	2023 (Q2)	1.48 / 1.65	1.34	23.13% (+0.31)
Apr 25, 2023	2023 (Q1)	1.32 / 1.67	1.35	23.70% (+0.32)
Jan 25, 2023	2022 (Q4)	1.51 / 1.54	1.3	18.46% (+0.24)	―
Oct 25, 2022	2022 (Q3)	1.44 / 1.40	1.62	-13.58% (-0.22)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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KMB Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 22, 2024	$142.94	$136.53	-4.48%
Jul 23, 2024	$141.69	$133.57	-5.73%
Apr 23, 2024	$125.61	$132.54	+5.52%
Jan 24, 2024	$120.54	$113.88	-5.53%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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