Financial Data and Key Metrics Changes - The third quarter results indicate strong progress in transforming Kimberly-Clark into an industry-leading personal care company, with consistent operating margin expansion and industry-leading productivity [6][8] - The company achieved its seventh consecutive quarter of volume plus mix-led growth, despite challenges in the broader consumer packaged goods (CPG) industry [6][8] Business Line Data and Key Metrics Changes - In North America, Kimberly-Clark gained 10 basis points of market share in diapers during the third quarter, with a year-to-date increase of 90 basis points [15][19] - The promotional activity in North America is lower than pre-2019 levels, with a focus on driving trial for innovation rather than expanding categories [16][18] Market Data and Key Metrics Changes - The company is experiencing double-digit growth in the club channel, driven by consumer shifts and changes in assortment [19] - Digital channels accounted for 100% of growth in North America, with a 7-point share benefit compared to brick-and-mortar [44] Company Strategy and Development Direction - Kimberly-Clark's strategy is centered on innovation-led growth, focusing on improving products across the good, better, best spectrum [12][75] - The company aims to achieve a gross margin of at least 40% and an operating profit of 18% to 20% by the end of the decade [33][82] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer purchasing power is under pressure, but demand for essential categories remains resilient [51] - The company is confident in its ability to mitigate stranded costs from the IFB transaction and expects to see a step-up in growth in adjusted EPS from continuing operations [32][34] Other Important Information - The company is working to reduce volatility in fiber costs through a joint venture with Suzano, which is expected to stabilize input costs [80][82] - The company is committed to driving premiumization across its product lines, with a significant increase in the premium mix in both North America and China [75][76] Q&A Session Summary Question: Update on competitive dynamics in U.S. diapers - Management acknowledged increased competitive activity but noted solid performance and a slight market share gain in diapers [12][15] Question: Shape of the P&L in 2026 and 2027 - Management indicated it is premature to provide detailed guidance but emphasized targeting organic growth ahead of categories [32][33] Question: Performance in North America relative to trends - Management explained that hurricane-related shipment dynamics and promotional timing contributed to stronger performance in the quarter [42][43] Question: Promotional activity in North America - Management stated that promotional activity is a tactic to drive trial and that they are focused on strengthening value propositions [51][52] Question: Cost outlook and tariff impacts - Management reported a reduction in gross tariffs and ongoing efforts to mitigate costs, expecting improvements in Q4 and early 2026 [59][60] Question: Competition in the ultra-premium diaper segment - Management expressed confidence in their technology and innovation pipeline, aiming to compete effectively across all tiers [75][76]