KM

Kimberly-Clark Corporation stock research

Mar 31, 2023

FY2023 Q1

Kimberly-Clark (KMB) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was higher than the prior quarter but lower than a year ago. Gross margin improved sequentially and showed a notable year-over-year increase.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was higher than the prior quarter but lower than a year ago. Gross margin improved sequentially and showed a notable year-over-year increase.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew faster than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to gross margin expansion.
  • Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher than the prior quarter but lower than a year ago.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

33.2%

Gross profit

$1.7B

Revenue

$5.2B

Cost of revenue

$3.5B

Quarter-over-quarter change

n/a

Year-over-year change

+3.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$5.2B$1.7B$3.5B33.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

+3.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew faster than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to gross margin expansion.

Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher than the prior quarter but lower than a year ago.

Monitor the trend in cost of revenue relative to revenue, as its movement directly affects gross margin stability.