KM

Kimberly-Clark Corporation stock research

Jun 30, 2023

FY2023 Q2

Kimberly-Clark (KMB) Gross Margin — Quarter Ended Jun 30, 2023

Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit improved relative to a year ago, while cost of revenue was lower than both the preceding quarter and the year-ago period, resulting in a higher gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit improved relative to a year ago, while cost of revenue was lower than both the preceding quarter and the year-ago period, resulting in a higher gross margin.

  • The gross margin improved compared to both the prior quarter and the same quarter last year, driven by a lower cost of revenue relative to revenue.
  • Compared to the immediately preceding quarter, revenue was slightly lower but gross margin was higher. Versus the same quarter one year earlier, revenue was stable while gross margin was higher.

Gross margin snapshot

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

Gross margin

33.7%

Gross profit

$1.7B

Revenue

$5.1B

Cost of revenue

$3.4B

Quarter-over-quarter change

+0.5 pts

Year-over-year change

+3.5 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%
Jun 30, 2023$5.1B$1.7B$3.4B33.7%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+0.5 pts

Year-over-year change

Jun 30, 2022

+3.5 pts

What the margin says

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

The gross margin improved compared to both the prior quarter and the same quarter last year, driven by a lower cost of revenue relative to revenue.

Compared to the immediately preceding quarter, revenue was slightly lower but gross margin was higher. Versus the same quarter one year earlier, revenue was stable while gross margin was higher.

Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the gross margin improvement.