KMB · 8-K · 20260804PR052113

Gross Margin Drivers

KIMBERLY CLARK CORP · 2026-08-04 · Importance 37 · Surprise 32 · No source text

Second-quarter gross margin was 38.3%, compared with 35.0% a year earlier, and adjusted gross margin increased 190 basis points to 38.8%. First-half adjusted gross margin rose 60 basis points to 38.3%, driven by one-time tariff refunds and productivity gains. Margin benefits were partly offset by planned investments in new-product trial and price-value tiers, supply-chain investments, unfavorable pricing net of cost inflation, business exits, and the China disruption.

Key facts

• Gross margin was 38.3 percent compared to 35.0 percent in the prior year, inclusive of $22 million, or approximately 50 basis points, and $82 million, or approximately 200 basis points, respectively, of charges related to the 2024 Transformation Initiative. source
• Excluding Transformation Initiative charges, adjusted gross margin was 38.8 percent, an increase of 190 basis points versus the prior year driven by one-time tariff refunds and strong productivity savings. source
• For the first half, gross margin was 37.6 percent compared to 36.1 percent in the prior year, inclusive of $64 million, or approximately 80 basis points, and $135 million, or approximately 160 basis points, respectively, of charges related to the 2024 Transformation Initiative. source
• Gross margin was 38.3 percent; adjusted gross margin was 38.8 percent, up 190 basis points versus the prior year. source
• Excluding Transformation Initiative charges, adjusted gross margin for the first half was 38.3 percent, up 60 basis points versus the prior year. source

Impact estimates