The 5 Most Interesting Analyst Questions From Kimberly-Clark's Q1 Earnings Call

Kimberly-Clark’s first quarter results were met with a negative market reaction, as revenue fell short of Wall Street’s expectations and sales declined year over year. Management attributed the underperformance primarily to external cost pressures, notably increased tariffs, and category growth deceleration in North America. CEO Mike Hsu noted, “Affordability has become paramount,” with consumers shifting toward value-oriented products and pack sizes. The company also highlighted that planned pricing investments and lower private label shipments weighed on organic growth.

Is now the time to buy KMB? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Kimberly-Clark’s Q1 Earnings Call

• Lauren Lieberman (Barclays) asked about the gap between North America reported results and scanner data, and the potential for organic sales acceleration. CFO Nelson Urdaneta attributed the difference to shipment timing, private label trends, and planned pricing investments, while CEO Mike Hsu cited new product activations as a driver for future growth.
• Nik Modi (RBC Capital Markets) pressed on balancing innovation at value tiers with margin management amid persistent value-seeking behavior. Hsu responded that the outlook revision was primarily cost-driven and that the company would manage mix issues while prioritizing consumer needs.
• Dara Mohsenian (Morgan Stanley) inquired about the $300 million tariff impact and the company’s ability to offset costs through pricing and productivity. Urdaneta detailed the tariff breakdown and timeline for mitigation, while Hsu emphasized increased agility in response to external shocks.
• Anna Lizzul (Bank of America) asked whether cost pressures would impact investments in marketing and innovation, or the company’s longer-term premiumization strategy. Urdaneta confirmed continued investment, and Hsu explained that supply chain adjustments, not cuts to quality or marketing, would address headwinds.
• Chris Carey (Wells Fargo Securities) questioned if accelerated productivity savings were pulling future gains forward and why the company was not aggressively pricing through tariffs. Urdaneta and Hsu stressed that mitigation would come from supply chain moves, not pricing alone, and that the productivity program remains on track for long-term targets.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will focus on (1) the pace and effectiveness of tariff mitigation efforts through supply chain changes, (2) consumer response to new value- and mainstream-tier product launches, and (3) the ability of productivity initiatives to offset ongoing cost headwinds. Execution on international product improvements and maintaining brand investment will also be critical signposts.

Kimberly-Clark currently trades at $130.67, down from $140.06 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.