Financial Performance - Organic sales growth for Q2 2025 was 3.9% [43], driven by strong volume growth in North America and International Personal Care [16] - Adjusted operating profit growth for Q2 2025 decreased by 2.2% [43] - Adjusted EPS growth attributable to Kimberly-Clark for Q2 2025 decreased by 2.0% [43] - Adjusted free cash flow year-to-date is $829 million [43] - The company is targeting 5-6% gross productivity savings in 2025 [34] Business Strategy and Initiatives - The company announced a $2 billion investment in North America to support growth and unlock efficiencies [10, 16] - A joint venture with Suzano was announced to create a preeminent international tissue and professional products company [12, 16, 38] - The company streamlined product platforms from 30 to 11 to drive simplicity and improve quality [36, 37] Segment Performance - North America experienced organic growth of 4.5% in Q2 2025 [45], driven by 5% volume growth [47] - International Personal Care saw organic growth of 6.0% in Q2 2025 [48], with focus markets growing volume by 8% [50] 2025 Outlook - The company anticipates low-to-mid single-digit organic sales growth ahead of market growth in constant currency [51] - Adjusted free cash flow for 2025 is expected to be approximately $2 billion, including $1.0-$1.2 billion in capital expenditures [51]

Kimberly-Clark raised its full-year guidance after reporting the strongest volume growth in five years https://t.co/Re0DVi6BpU ...

Financial Performance - Net sales for Q2 2025 were $4.2 billion, a decrease of 1.6% year-over-year, primarily due to a 4.4% negative impact from divestitures and a 1.0% impact from foreign currency translation [4]. - Year-to-date sales were $8.2 billion, a decrease of 4.0%, with organic sales growth of 1.2% primarily from a 2.3% increase in volume [11]. - Net sales for Q2 2025 were $4,163 million, a decrease of 1.6% compared to $4,231 million in Q2 2024 [40]. - Net Sales for North America (NA) decreased by 1.9% to $2.730 billion in Q2 2025 from $2.783 billion in Q2 2024 [48]. - Total Operating Profit for the first half of 2025 was $1.223 billion, a decrease of 2.5% from $1.254 billion in the first half of 2024 [48]. Earnings and Profitability - Diluted earnings per share (EPS) attributable to Kimberly-Clark were $1.53, down from $1.61 in the prior year, with adjusted EPS decreasing by 2.0% to $1.92 [10]. - Basic earnings per share for Q2 2025 were $1.53, down 5.0% from $1.61 in Q2 2024 [40]. - Operating profit increased by 9.8% to $592 million in Q2 2025, compared to $539 million in Q2 2024 [40]. - Year-to-date operating profit was $1.2 billion, including $196 million of costs related to the transformation initiative, with adjusted operating profit down 4.7% [13]. - Adjusted Operating Profit for Q2 2025 was $713 million, slightly down from $729 million in Q2 2024 [58]. Margins and Cash Flow - Adjusted gross margin was 36.9%, down 180 basis points from the prior year, influenced by unfavorable pricing net of cost inflation [5]. - Operating cash flow for the first half of 2025 was $1,097 million, down from $1,459 million in the same period of 2024 [46]. - Adjusted free cash flow is anticipated to be approximately $2 billion in 2025 [30]. Strategic Initiatives - The company plans to continue its transformation strategy, which is expected to enhance sustainable growth and profitability [2]. - The company initiated a 2024 Transformation Initiative aimed at improving growth trajectory and profitability [56]. - The company expects 2025 organic sales growth to outpace the average growth in its categories, currently estimated at approximately 2% [26]. - The company anticipates challenges related to the pending IFP joint venture transaction and the 2024 Transformation Initiative, which may impact future performance [37]. Tax and Other Financial Metrics - The effective tax rate as reported for Q2 2025 was 22.6%, while the adjusted effective tax rate was 20.9% [59]. - Cash dividends declared increased by 3.3% to $1.26 per share in Q2 2025, compared to $1.22 in Q2 2024 [40]. - Total assets as of June 30, 2025, were $16,771 million, an increase from $16,546 million at the end of 2024 [44]. - Cash and cash equivalents decreased to $634 million as of June 30, 2025, from $1,010 million at the beginning of the period [46].

Core Insights - Kimberly-Clark Corporation reported strong second quarter results driven by innovation-led volume growth, effective cost management, and resilient consumer demand [1][2][4] - The company is executing its "Powering Care" transformation strategy, which has led to one of the strongest quarters in recent history [2][3] Financial Performance - Net sales for Q2 2025 were $4.2 billion, a decrease of 1.6% from the previous year, impacted by divestitures and foreign currency translation [4][10] - Organic sales increased by 3.9%, primarily due to a 5.0% volume-led growth, partially offset by a 1.2% investment in pricing [4][10] - Gross margin was reported at 35.0%, with an adjusted gross margin of 36.9%, down 180 basis points year-over-year due to pricing pressures and cost inflation [5][10] - Operating profit for Q2 was $592 million, up from $539 million in the prior year, with adjusted operating profit at $713 million, a decline of 2.2% [6][10] Year-to-Date Results - For the first half of 2025, sales totaled $8.2 billion, down 4.0% compared to the same period last year, with organic sales growth of 1.2% [11][12] - Year-to-date gross margin was 36.1%, with an adjusted gross margin of 37.7%, reflecting a decline of 120 basis points year-over-year [12] - Year-to-date operating profit was $1.2 billion, including $196 million in transformation initiative costs, with adjusted operating profit at $1.4 billion, down 4.7% from 2024 [13] Business Segment Performance - North America net sales decreased by 1.9% to $2.7 billion, while organic sales grew by 4.3% driven by strong volume growth [19][20] - International Personal Care (IPC) net sales increased by 0.4% to $1.4 billion, with organic sales growth of 3.3% [21][22] Cash Flow and Balance Sheet - Year-to-date cash provided by operations was $1.1 billion, down from $1.5 billion last year, with capital spending at $401 million [23] - The company returned $944 million to shareholders through dividends and stock repurchases, with total debt at $7.2 billion as of June 30, 2025 [23] 2025 Outlook - The company adjusted its full-year outlook, expecting organic sales growth to outpace the average growth in its categories, which are currently at approximately 2% [24][25] - Adjusted operating profit is anticipated to grow at a low-to-mid single-digit rate on a constant-currency basis, with a negative impact from divestitures and currency translation [26][27] - Adjusted earnings per share are expected to grow at a low-to-mid single-digit rate, factoring in various impacts including higher net interest expense and a higher effective tax rate [27]

Group 1 - In the first half of 2025, the Nasdaq exchange welcomed 142 IPOs, raising a total of $19.2 billion, marking the highest number of listings and fundraising since 2021 [1] - Among the new listings, 83 were operating companies, while 59 were SPACs (Special Purpose Acquisition Companies) [1] - Additionally, 11 companies transferred from the NYSE to Nasdaq during the same period, with a total valuation of $271 billion, including notable firms like Shopify and Kimberly-Clark [1] Group 2 - The months of April and May saw the highest activity for new listings, with a total of 60 new stocks launched [3] - China accounted for the largest number of foreign companies listed, representing 32% of the total [3] - The Nasdaq's "IPO Pulse Index" has been rising, indicating improved market returns and valuations, which are expected to correlate with continued IPO activity in the second half of the year [3]

Group 1 - Kimberly-Clark will release its second quarter 2025 results on August 1, 2025, at approximately 6:30 a.m. EDT [1] - A live Q&A session with analysts will follow the earnings release, starting at 8:00 a.m. EDT [1] - The earnings release and supplemental materials will be accessible through Kimberly-Clark's Investor Relations website, along with a replay of the webcast [2] Group 2 - Kimberly-Clark operates in over 175 countries and territories, providing essential products under trusted brands [3] - The company's portfolio includes well-known brands such as Huggies, Kleenex, and Scott, which hold No. 1 or No. 2 market share positions in approximately 70 countries [3] - Kimberly-Clark has been recognized as one of the World's Most Ethical Companies® for seven consecutive years and was listed among Fortune's Most Innovative Companies in America in 2024 [3]

Core Viewpoint - Investors in the Consumer Products - Staples sector should consider Grocery Outlet Holding Corp. (GO) and Kimberly-Clark (KMB) for potential value investment opportunities [1] Group 1: Company Rankings and Performance - Grocery Outlet Holding Corp. has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Kimberly-Clark has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that GO is likely experiencing a more favorable earnings outlook compared to KMB [3] Group 2: Valuation Metrics - GO has a forward P/E ratio of 17.91, while KMB has a forward P/E of 18.58, indicating that GO may be more attractively priced relative to its earnings [5] - The PEG ratio for GO is 3.35, compared to KMB's PEG ratio of 4.47, suggesting that GO's valuation is more favorable when considering expected earnings growth [5] - GO's P/B ratio is 1.1, significantly lower than KMB's P/B of 35.69, further supporting GO's position as a better value option [6] - Based on these valuation metrics, GO has a Value grade of A, while KMB has a Value grade of C, reinforcing the conclusion that GO is the superior value investment at this time [6]

Core Viewpoint - Investing in high-yielding stocks can be attractive for income investors, but it is essential to consider the stability and growth potential of the companies behind these dividends [1][2]. Group 1: Verizon Communications - Verizon offers a dividend yield of 6.3%, significantly higher than the S&P 500 average of 1.2% [4]. - The company reported sales of $134.8 billion in 2024, showing minimal growth from $133.6 billion in 2021 [4]. - Verizon has a profit margin exceeding 13% and trades at 10 times its trailing earnings, making it a solid income investment [5]. - The company has increased its dividend for 18 consecutive years, with a sustainable payout ratio of 64% [5][6]. Group 2: Duke Energy - Duke Energy provides a dividend yield of 3.5% and operates in essential utility services, offering stability [7]. - The company generated $30.9 billion in revenue and $4.7 billion in earnings over the past 12 months, resulting in a profit margin of 15% [8]. - Duke has paid dividends for 99 straight years, with a 31% increase in its quarterly per-share dividend over the past decade [9]. - The payout ratio of 69% indicates potential for future dividend increases, making it a strong long-term investment [9]. Group 3: Kimberly-Clark - Kimberly-Clark, known for brands like Huggies and Kleenex, has maintained sales around $20 billion for the past three years with profit margins typically around 10% [10][11]. - The company has raised its dividend for 53 consecutive years, earning the title of Dividend King, indicating a commitment to growing its payouts [12]. - With a dividend yield of 3.9% and a payout ratio of approximately 67%, Kimberly-Clark is positioned as a low-volatility stock suitable for long-term investment [12][13].

Group 1 - Grocery Outlet Holding Corp. (GO) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Kimberly-Clark (KMB) has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system favors stocks with strong earnings estimate revisions, which is a key consideration for value investors [2][3] - Value investors analyze various traditional metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - GO has a forward P/E ratio of 17.47, while KMB has a forward P/E of 18.20, suggesting GO may be more attractively priced [5] - The PEG ratio for GO is 3.53, compared to KMB's PEG ratio of 4.37, indicating GO has a better earnings growth outlook relative to its valuation [5] - GO's P/B ratio is 1.07, significantly lower than KMB's P/B of 34.95, further supporting GO as the superior value option [6]

Group 1 - U by Kotex® has partnered with Anna Leigh Waters, the number one pickleball player, to challenge the stigma surrounding menstruation in sports [1][2][3] - A study indicates that some women's mental agility may improve during menstruation, with faster reaction times and better accuracy [2] - More than 84% of teenage girls aged 11-16 report a decrease in interest in sports after starting their period, and nearly 25% feel embarrassed to participate in physical activities during their menstrual cycle [3] Group 2 - The partnership aims to empower women to continue participating in sports regardless of their menstrual cycle, promoting the message that periods should not hinder athletic performance [3][4] - U by Kotex® emphasizes the importance of showcasing female athletes' resilience and strength, aligning with their mission to normalize conversations about menstruation in sports [4]