Consumer
Weaker Tissue Demand Hits Kimberly-Clark Earnings
- Company’s quarterly sales falls short of market expectations
- Consumers are spending less on groceries amid higher prices
Kimberly-Clark’s revenue missed Wall Street’s expectations despite prices in the quarter that were 2% higher than a year earlier.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Kimberly-Clark Corp., the owner of the Kleenex brand, reported quarterly sales that trailed estimates, partially driven by retailers lowering their stocks of the company’s bath tissue and intensifying private-label competition.
Organic sales growth, which strips out factors such as currency volatility, was 4% in the second quarter, falling short of the average analyst estimate of 5%. Revenue dropped from the same period a year ago, mostly due to weaker results at the company’s tissue segment, which includes toilet paper.