Kimberly-Clark (KMB) shares tumbled 5.05% in pre-market trading on Tuesday after the consumer products giant slashed its 2025 profit forecast due to rising costs from trade tariffs. The company, known for brands like Kleenex and Huggies, reported first-quarter earnings that beat estimates but missed on revenue expectations.

In its earnings release, Kimberly-Clark announced it now expects 2025 adjusted earnings per share to be flat to positive on a constant-currency basis, down from its previous forecast of mid-to-high single-digit growth. The company cited approximately $300 million in additional costs this year due to changes in the global tariff environment. CEO Mike Hsu stated, "The current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year."

While Kimberly-Clark's Q1 adjusted earnings of $1.93 per share surpassed analysts' expectations of $1.89, revenue fell short at $4.84 billion compared to estimates of $4.89 billion. The company's North America segment saw a 3.9% decline in revenues, while International Personal Care sales slumped 8.9%. Despite the challenges, Hsu expressed confidence in the company's ability to offset these costs over time and unlock long-term potential.