MW Kleenex, Huggies parent cuts growth outlook as tariffs boost supply-chain costs

By Tomi Kilgore

Kimberly-Clark just beat quarterly profit expectations while sales fell in line with forecasts, amid particular weakness in its international businesses

Shares of Kimberly-Clark Corp. took a hit in early Tuesday trading, after the consumer-brands company cut its full-year profit growth outlook, citing higher costs in the supply chain in the wake of tariff actions.

The parent of household products including Kleenex, Huggies, Cottonelle and Depend, also reported first-quarter sales that declined from a year ago for the fifth straight quarter, amid particular weakness in its international businesses.

The stock $(KMB)$ dropped 4.7% in premarket trading, to pace the consumer-staples sector's decliners.

"To reflect a reassessment of its cost base, including potential impacts from changes in the global geopolitical landscape" - basically, tariff actions - the company said it now expects 2025 adjusted operating profit, excluding the effects of currency moves, to be flat to positive.

That compares with previous guidance of growth in the "high single-digit" percentage range.

Kimberly-Clark also expects full-year constant-currency adjusted earnings per share to be flat to positive, down from a prior outlook of growth in the "mid-to-high single-digit" percentage range.

For the first quarter to March 31, net income fell to $567 million, or $1.70 a share, from $647 million, or $1.91 a share, in the same period a year ago.

Excluding nonrecurring items, such as the impact of transformation actions last year, adjusted EPS of $1.91 topped the average analyst estimate compiled by FactSet of $1.90.

Sales declined 6% to $4.84 billion, in line with the FactSet consensus.

North America sales fell 3.9% to $2.7 billion, due primarily to divestitures and the exit of its private label diaper business.

Internationally, personal care sales dropped 8.9% to $1.4 billion, weighed by lowered prices, and family care and professional sales decreased 7.7% to $791 million due to business exits.

The stock has advanced 6.9% year to date through Monday, while the Consumer Staples Select Sector SPDR ETF XLP has gained 3.2% and the S&P 500 index SPX has dropped 12.3%.

-Tomi Kilgore

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April 22, 2025 08:17 ET (12:17 GMT)

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