Tariffs Stand to Aggravate Cost Pressures, but Kimberly-Clark's Prudent Brand Investments to Persist

Like peers, narrow-moat Kimberly-Clark has been inundated by many challenges, including a tepid economic environment and elevated cost pressures, including impending tariffs. In this context, management has been forthright that its market share had lagged, and consumers have traded down to lower-priced options in select categories to preserve cash. We think this could prompt a step-up in promotions across its categories—now that industrywide supply/demand imbalances have largely been put to rest.