Kimberly-Clark Q1 outcomes flag international foreign money headwinds, firm slashes outlook

Client items large Kimberly-Clark reported Q1 earnings right this moment that reveal a number of macro themes value watching and the dynamic of a weakening USD and the way that can harm equities.

The maker of Kleenex and Huggies posted a 6% drop in internet gross sales to $four.eight billion, with foreign money translation accounting for a major 2.four% of that decline. Extra regarding for macro watchers is the corporate’s revised outlook, citing “better prices throughout our international provide chain” than anticipated initially of 2025.

They’ve considerably diminished their outlook from “excessive single-digit progress” to “flat to constructive” for working revenue on a constant-currency foundation, indicating a notable slowdown in enterprise expectations.

Share of KMB are down three.5%.

If the US greenback continues to fall, we may see a reversal in a few of this commentary as a weak greenback boosts international income in USD phrases.

The excellent news is corporate reported a 1.5% lower in worth, with quantity and blend flat year-over-year. That is some excellent news on inflation however suggests challenges in sustaining pricing energy in a slowing shopper atmosphere.

This text was written by Adam Button at www.ubaidahsan.com.



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