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

Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved while cost of revenue declined, resulting in a higher gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved while cost of revenue declined, resulting in a higher gross margin.

The gross margin strengthened sequentially and year-over-year, driven by a lower cost of revenue relative to revenue.
Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher.

Gross margin snapshot

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

Gross margin

35.8%

Gross profit

$1.8B

Revenue

$5.1B

Cost of revenue

$3.3B

Quarter-over-quarter change

+2.1 pts

Year-over-year change

+5.3 pts

Quarterly gross margin trend

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

Period	Revenue	Gross profit	Cost of revenue	Gross margin
Mar 31, 2023	$5.2B	$1.7B	$3.5B	33.2%
Jun 30, 2023	$5.1B	$1.7B	$3.4B	33.7%
Sep 30, 2023	$5.1B	$1.8B	$3.3B	35.8%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

+2.1 pts

Year-over-year change

Sep 30, 2022

+5.3 pts

What the margin says

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

The gross margin strengthened sequentially and year-over-year, driven by a lower cost of revenue relative to revenue.

Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.