KM

Kimberly-Clark Corporation stock research

Mar 31, 2024

FY2024 Q1

Kimberly-Clark (KMB) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and cost of revenue both decreased compared to the same quarter one year earlier, while gross profit remained stable, resulting in an improved gross margin. Compared to the immediately preceding quarter, revenue increased, cost of revenue increased, and gross profit increased, but gross margin weakened.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and cost of revenue both decreased compared to the same quarter one year earlier, while gross profit remained stable, resulting in an improved gross margin. Compared to the immediately preceding quarter, revenue increased, cost of revenue increased, and gross profit increased, but gross margin weakened.

  • Gross margin improved versus the year-ago quarter, driven by a proportionally larger decline in cost of revenue relative to revenue. The margin weakened sequentially as cost of revenue grew faster than revenue.
  • Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was lower, cost of revenue was lower, gross profit was stable, and gross margin was higher.

Gross margin snapshot

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

Gross margin

39.0%

Gross profit

$1.7B

Revenue

$4.3B

Cost of revenue

$3.2B

Quarter-over-quarter change

-18.8 pts

Year-over-year change

+5.7 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$5.1B$1.7B$3.4B33.7%
Sep 30, 2023$5.1B$1.8B$3.3B35.8%
Dec 31, 2023$1.7B$974.0M$711.0M57.8%
Mar 31, 2024$4.3B$1.7B$3.2B39.0%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

-18.8 pts

Year-over-year change

Mar 31, 2023

+5.7 pts

What the margin says

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

Gross margin improved versus the year-ago quarter, driven by a proportionally larger decline in cost of revenue relative to revenue. The margin weakened sequentially as cost of revenue grew faster than revenue.

Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was lower, cost of revenue was lower, gross profit was stable, and gross margin was higher.

Monitor the relationship between revenue and cost of revenue trends, as sequential margin compression suggests cost growth outpaced revenue growth.

KMB Gross Margin — Quarter Ended Mar 31, 2024