Updates

** Shares of Kleenex tissue maker Kimberly-Clark KMB.N down 3.5% at $135.27% in early trading

** Co slashes annual profit forecast, warns broad-based tariffswill increase supply chain costs

** Reports Q1 revenue below analysts' estimates; price reductions and demand slowdown hurt revenue of co's North America segment, its largest

** However, Q1 adjusted profit beat estimates, according to data compiled by LSEG, helped by lower adjusted effective tax rate

** The company now faces tough decisions: to raise prices and risk losing loyal customers, or absorb costs and damage profitability - eMarketer analyst Zak Stambor

** Up to last close, stock had risen ~7% YTD

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))