Core Insights - The campaign by Poise® featuring Katherine Heigl aims to normalize bladder leaks among women, addressing the stigma and encouraging open conversations about pelvic health [2][5][6] - The campaign highlights that at least 50% of women experience bladder leaks, particularly during perimenopause, menopause, and after childbirth, yet many remain unaware of the impact on pelvic health [1][5] Company Overview - Poise® is recognized as the number one brand for light bladder leak protection, offering a range of products including liners and pads designed for comfort and discretion [2][5] - Kimberly-Clark, the parent company of Poise®, operates in over 175 countries and is known for its commitment to sustainability and ethical practices, being recognized as one of the World's Most Ethical Companies [7][8] Campaign Details - The campaign features humorous and relatable scenarios, such as a brunch scene where Heigl discusses bladder leaks in a light-hearted manner, aiming to educate and empower women [3][4] - The campaign will be promoted across various channels, including TV, social media, and digital platforms, to reach a wide audience [6]

Core Viewpoint - The case of Newman v. Moore highlights the unconstitutional suspension of Federal Circuit Judge Pauline Newman, with support from six retired federal judges and various legal organizations, emphasizing the need to uphold judicial independence and due process [1][3][4]. Group 1: Judicial Suspension Details - Judge Newman was suspended indefinitely from hearing new cases in March 2023 without due process, violating the Judicial Conduct and Disability Act [2]. - The suspension was initially for one year in September 2023 and was extended for another year in September 2024, marking an unprecedented action in American judicial history [2]. - The complete suspension of an Article III judge from all judicial functions is deemed unconstitutional [2]. Group 2: Legal Arguments and Support - The U.S. District Court for the District of Columbia dismissed Judge Newman's constitutional claims, arguing that judicial review was precluded, which contradicts the presumption that all U.S. citizens have the right to have their federal constitutional claims heard [3]. - The retired judges' brief asserts that the U.S. Senate alone has the authority to remove Article III judges, and the indefinite suspension of Judge Newman usurps that authority, challenging the independence of all federal judges [3]. - Organizations such as the Bar Association of the District of Columbia, The Buckeye Institute, and Manhattan Institute have also filed amicus briefs in support of Judge Newman, reinforcing the defense of due process and judicial independence [3]. Group 3: Statements from NCLA - NCLA emphasizes the significance of the amicus brief from retired federal judges, noting the constitutional peril created by the Federal Circuit's actions and urging the D.C. Circuit to protect judicial independence [4]. - The rarity of retired federal judges submitting amicus briefs underscores the importance of their concerns and arguments, which should be carefully considered by the D.C. Circuit and the broader legal community [4].

Core Insights - Kimberly-Clark Corporation is transitioning from a decentralized business model to a balanced matrix organization to enhance top-line growth and productivity [3]. Group 1: Organizational Changes - The company is implementing organizational changes aimed at leveraging scale in supply chain, innovation, marketing, and commercial execution [3]. - These changes are expected to yield payback starting in 2024, with a focus on achieving balanced and sustainable growth [3]. Group 2: Future Outlook - The initiatives are anticipated to contribute to profit growth in 2025, although some benefits may take longer to materialize [3].

Core Viewpoint - Kimberly-Clark Corporation is facing challenges in a dynamic consumer and retail environment, impacting its performance and margins, as reflected in its guidance for Q4 2024 [1][9]. Financial Performance - The Zacks Consensus Estimate for Q4 earnings per share has decreased by 2 cents to $1.49, while estimates for the current year and full year have increased by a cent each to $7.27 and $7.55, respectively, indicating ongoing favorable prospects despite short-term hurdles [3]. - Kimberly-Clark's Q3 2024 revenues were $4,952 million, a decline of 4% year over year, attributed to retail inventory reductions, hurricane-related disruptions, and lower demand in certain international markets [6]. Market Challenges - The shifting consumer and retail environment presents headwinds, particularly in key international markets such as parts of Asia, Latin America, and North America's professional segment, with economic pressures reducing purchase frequency and declining birth rates weakening demand for products like diapers [5]. - The company's exit from low-margin private label products has contributed to a 1.3-point decline in quarterly revenue growth, with an anticipated further revenue headwind of around 2% in 2025 due to the phasing out of additional private-label diaper contracts in North America [7]. Strategic Initiatives - Kimberly-Clark has increased its advertising spend by 60 basis points in Q3 and plans to maintain or increase this investment in Q4 to sustain demand amid heightened price sensitivity, although this may limit margin expansion [8]. - The Powering Care Strategy focuses on accelerating innovation, optimizing margin structure, and restructuring for growth, aiming to solidify the company's position as a category leader globally [11]. - The company is targeting $3 billion in cost savings over the next several years, achieving $130 million in savings in Q3 and aiming for a gross margin of 40% by 2030 [12]. Future Outlook - Kimberly-Clark anticipates that its Q4 top-line performance will closely mirror that of Q3, reflecting a challenging consumer landscape and potential retail inventory reductions [9]. - Despite short-term challenges, the long-term strategic initiatives provide a foundation for optimism regarding sustained growth and profitability [13].

Core Insights - Kimberly-Clark's Q3 2024 earnings exceeded expectations, with adjusted earnings of $1.83 per share, surpassing the Zacks Consensus Estimate of $1.69, reflecting a 5% year-over-year increase [3][4] - However, total sales of $4,952 million fell short of the consensus estimate of $5,063 million, marking a 4% decline compared to the previous year [3][4] - The company has revised its organic sales outlook downward, now projecting growth between 3% and 4%, down from a previously anticipated mid-single-digit growth rate [11] Financial Performance - Adjusted gross margin expanded by 90 basis points to 36.7%, attributed to productivity gains [7] - Organic sales increased by 1%, driven by a 1% rise in pricing, particularly in hyperinflationary economies like Argentina [5][6] - In North America, organic sales fell by 1%, while Developing and Emerging markets saw an 8% increase in organic sales [6] Segment Performance - Personal Care segment sales were $2,635 million, down 2% year over year, but organic sales rose by 3% [8] - Consumer Tissue segment sales dropped 2% to $1,539 million, with organic sales down 1% due to inventory reductions [9] - K-C Professional segment sales fell 10% to $767 million, impacted by unfavorable currency rates and divestitures [10] Future Outlook - Adjusted operating profit is projected to grow at a mid-to-high teens percentage rate on a constant currency basis in 2024 [12] - The consensus estimate for Kimberly-Clark has shifted downward by 7.63% in the past month, indicating a negative trend in estimates [13][14] - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [16]

Core Insights - Kimberly-Clark Corporation (KMB) is currently trading at a forward 12-month price-to-sales (P/S) ratio of 2.19, which is significantly higher than the industry average of 1.29, indicating high growth expectations from the market [1] - The company's shares have declined by 7.6% over the past three months, underperforming the industry and broader market indices [2] - Despite the high valuation and recent stock performance concerns, Kimberly-Clark's Powering Care strategy and growth initiatives may still attract investors [3] Financial Performance - Kimberly-Clark reported third-quarter 2024 revenues of $4,952 million, a decline of 4% year over year, attributed to retail inventory reductions, hurricane-related disruptions, and lower demand in international markets [5] - For 2024, organic net sales growth is projected to be between 3% and 4%, down from a previously anticipated mid-single-digit growth rate, with currency headwinds expected to negatively impact net sales by nearly 400 basis points [6] - The company anticipates minimal growth in operating profit for the fourth quarter, with increased investments in operations and brands offset by productivity savings and a decrease in Other Income and Expenses [9] Market Challenges - Kimberly-Clark faces challenges from a dynamic consumer and retail environment, with softened demand in key international markets and reduced purchase frequency in Southeast Asia and Latin America due to economic pressures [4] - The current economic landscape has led to increased promotional strategies, with a 60 basis point rise in advertising spend in the third quarter, which may limit margin expansion and profitability [7] - The company expects fourth-quarter performance to closely mirror the third quarter, reflecting ongoing challenges in consumer demand and retail inventory reductions [8] Growth Strategy - The Powering Care Strategy is central to Kimberly-Clark's transformation, focusing on accelerated growth, operational efficiency, and enhanced organizational alignment [10] - Innovation is a priority, with the recent launch of Skin Essentials being well-received, aimed at driving premiumization and catering to evolving consumer demands [11] - The company has set a productivity target of $3 billion in savings over the next few years, achieving $130 million in the third quarter of 2024, which has contributed to margin expansion [13] Long-term Outlook - Kimberly-Clark aims for a 40% gross margin target by 2030, with current gross margin at 37% year to date [14] - Despite elevated valuation and recent underperformance, the company's strong brand image and strategic initiatives suggest potential for long-term success [15]

Group 1 - Kimberly-Clark Corporation has elected Joseph Romanelli to its board of directors, increasing the board size from 12 to 13 members [1] - Joe Romanelli brings extensive global leadership experience and expertise in healthcare, which aligns with Kimberly-Clark's Powering Care strategy [2] - Romanelli has been president of Human Health International for Merck & Co. since 2022, overseeing operations in over 75 markets and leading a team of 14,000 [2] Group 2 - Kimberly-Clark operates in more than 175 countries and offers a portfolio of trusted brands, including Huggies, Kleenex, and Scott, which hold leading market positions in approximately 70 countries [3] - The company emphasizes sustainable practices and has been recognized as one of the World's Most Ethical Companies for five consecutive years [3]

Group 1 - U by Kotex® has launched a limited-edition line of jeans called MaxiMalism Jeans, designed to feature a transparent back pocket for carrying menstrual pads openly, aiming to empower women and reduce stigma around periods [1][2] - A recent study indicates that 83% of girls feel the need to hide their period products, while 76% of school-age students associate periods with negative connotations [1][2] - The MaxiMalism Jeans are part of U by Kotex®'s initiative to change perceptions about menstruation, with the first batch released on October 22 already sold out, and additional batches scheduled for release on October 24 and 27 [2] Group 2 - Kimberly-Clark, the parent company of U by Kotex®, operates in over 175 countries and is recognized for its commitment to sustainability and ethical practices, holding leading market positions in approximately 70 countries [3] - The company has been acknowledged as one of the World's Most Ethical Companies for six consecutive years and was named one of Fortune's Most Innovative Companies in America in 2024 [3]

Goldman Sachs analyst Bonnie Herzog reiterated the Buy rating on Kimberly-Clark Corporation KMB stock, with a price forecast of $152.The company reported third quarter adjusted earnings per share of $1.83, beating the street view of $1.70. Quarterly revenues of $4.952 billion missed the analyst consensus of $5.048 billion.According to Herzog, Kimberly-Clark’s management efforts on productivity and the current environment are conducive to margin expansion.The analyst projects that the market underestimates t ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited interim condensed consolidated financial statements for Kimberly-Clark Corporation for the three and nine months ended September 30, 2024, and 2023, including statements of income, comprehensive income, balance sheets, stockholders' equity, and cash flows, along with detailed notes [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net Sales decreased to $4,952 million in Q3 2024, while Operating Profit significantly increased to $1,154 million, leading to higher Net Income Attributable to Kimberly-Clark and Diluted EPS Consolidated Statements of Income Highlights (in millions, except per share amounts) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $4,952 | $5,132 | $15,130 | $15,461 | | **Gross Profit** | $1,784 | $1,838 | $5,505 | $5,295 | | **Operating Profit** | $1,154 | $774 | $2,662 | $1,674 | | **Net Income Attributable to K-C** | $907 | $587 | $2,098 | $1,255 | | **Diluted EPS** | $2.69 | $1.73 | $6.21 | $3.70 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total Assets slightly decreased to $17,165 million as of September 30, 2024, while Total Liabilities decreased, and Total Stockholders' Equity increased to $1,444 million Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2024 (Unaudited) | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $5,847 | $5,703 | | **Total Assets** | $17,165 | $17,344 | | **Total Current Liabilities** | $7,066 | $6,930 | | **Long-Term Debt** | $6,882 | $7,417 | | **Total Stockholders' Equity** | $1,444 | $1,068 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash provided by operations increased to $2,417 million for the nine months ended September 30, 2024, with investing activities providing cash and financing activities using more cash due to repurchases and debt repayments Cash Flow Summary (in millions) | Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Cash Provided by Operations** | $2,417 | $2,327 | | **Cash Provided by (Used for) Investing** | $94 | $(266) | | **Cash Used for Financing** | $(2,480) | $(1,620) | | **Change in Cash and Cash Equivalents** | $18 | $387 | | **Cash and Cash Equivalents - End of Period** | $1,111 | $814 | [Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the 2024 Transformation Initiative charges, the PPE business sale gain, intangible asset impairment, and segment operating profit increases across Personal Care, Consumer Tissue, and K-C Professional - Announced the 2024 Transformation Initiative, expected to be completed by the end of 2026 with total anticipated pre-tax costs of approximately **$1.5 billion**. For the nine months ended Sep 30, 2024, total charges were **$359 million** pre-tax[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Completed the sale of the personal protective equipment (PPE) business on July 1, 2024, for **$635 million**, recognizing a pre-tax gain of **$566 million**[35](index=35&type=chunk) - Recognized a pre-tax impairment charge of **$97 million** in Q3 2024 on intangible assets related to the Softex and Thinx businesses within the Personal Care segment[38](index=38&type=chunk) Segment Operating Profit (in millions) | Segment | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | % Change | | :--- | :--- | :--- | :--- | | Personal Care | $1,567 | $1,461 | +7% | | Consumer Tissue | $800 | $707 | +13% | | K-C Professional | $535 | $514 | +4% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2024 net sales decrease to $5.0 billion, offset by 1% organic growth, and an increase in adjusted operating profit, detailing the Transformation Initiative, PPE sale impact, and segment performance [Overview of Third Quarter 2024 Results](index=21&type=section&id=Overview%20of%20Third%20Quarter%202024%20Results) Q3 2024 net sales decreased 4% to $5.0 billion, with 1% organic growth, while operating profit rose to $1.2 billion and diluted EPS increased to $2.69, impacted by special items - Net sales of **$5.0 billion** decreased **4%** compared to the prior year[81](index=81&type=chunk) - Organic sales grew **1%** year-over-year[81](index=81&type=chunk) - Diluted earnings per share were **$2.69**, compared to **$1.73** in the prior year, with results impacted by transformation charges, a gain on the sale of the PPE business, and impairment charges[81](index=81&type=chunk)[79](index=79&type=chunk) [Analysis of Consolidated Results](index=24&type=section&id=Analysis%20of%20Consolidated%20Results) Q3 2024 consolidated net sales decreased 4% due to currency and divestitures, despite 1% organic growth, with adjusted operating profit increasing 5% driven by supply chain productivity savings Percent Change in Net Sales - Q3 2024 | Component | Consolidated | North America | D&E Markets | Developed Markets | | :--- | :--- | :--- | :--- | :--- | | **Organic** | 1% | (1)% | 8% | (2)% | | **Currency Translation** | (3)% | 0% | (12)% | (1)% | | **Divestitures/Exits** | (1)% | (2)% | (1)% | (1)% | | **Total** | (4)% | (3)% | (4)% | (4)% | - Adjusted operating profit for Q3 2024 was **$810 million**, a **5% increase** from the prior year, and **$2.6 billion** for the nine-month period, a **12% increase**[96](index=96&type=chunk) - Results benefited from gross supply chain productivity savings of approximately **$130 million** in Q3 and **$385 million** for the nine months ended Sep 30, 2024[96](index=96&type=chunk) [Results by Business Segments](index=27&type=section&id=Results%20by%20Business%20Segments) Q3 2024 saw net sales declines across all segments, but nine-month operating profit increased for Personal Care (+7%), Consumer Tissue (+13%), and K-C Professional (+4%) Q3 2024 Net Sales and Operating Profit by Segment | Segment | Net Sales (in millions) | % Change (YoY) | Organic % Change | Operating Profit (in millions) | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Personal Care** | $2,635 | -2% | +3% | $482 | -4% | | **Consumer Tissue** | $1,539 | -2% | -1% | $265 | -1% | | **K-C Professional** | $767 | -10% | -1% | $161 | -4% | - For the nine months ended Sep 30, 2024, operating profit increased **7%** in Personal Care, **13%** in Consumer Tissue, and **4%** in K-C Professional compared to the prior year[103](index=103&type=chunk)[108](index=108&type=chunk)[114](index=114&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Cash from operations was $2.4 billion for the first nine months of 2024, with investing activities providing cash, financing activities using $2.5 billion, and total debt decreasing to $7.5 billion - Cash provided by operations was **$2.4 billion** for the nine months ended Sep 30, 2024[115](index=115&type=chunk) - Repurchased **5.4 million shares** of common stock for a total cost of **$752 million** during the first nine months of 2024[117](index=117&type=chunk) - Total debt stood at **$7.5 billion** as of September 30, 2024, down from **$8.0 billion** at the end of 2023[118](index=118&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of September 30, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[126](index=126&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[126](index=126&type=chunk) PART II – OTHER INFORMATION [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details Q3 2024 share repurchases of over 4.1 million shares under the 2021 Program, with average prices ranging from $139.77 to $143.75 per share Share Repurchases for Q3 2024 | Period (2024) | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July | 723,792 | $139.77 | | August | 1,864,673 | $141.56 | | September | 1,591,765 | $143.75 | - Share repurchases were made pursuant to the 2021 Program, which authorizes the repurchase of up to **40 million shares** not to exceed **$5 billion**[128](index=128&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans or other similar arrangements during the third quarter of 2024 - During the three months ended September 30, 2024, no directors or officers adopted or terminated any Rule 10b5-1 trading plans or other similar arrangements[130](index=130&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including CEO and CFO certifications required by Sarbanes-Oxley and interactive data files in XBRL format - Lists required certifications from the Chief Executive Officer and Chief Financial Officer[132](index=132&type=chunk) - Includes XBRL instance documents and related taxonomy files for interactive data[132](index=132&type=chunk)