We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
KMB Accelerates Growth Through Digital & Club Channel Expansion
Read MoreHide Full Article
Key Takeaways
KMB's Q3 highlights a shift toward digital and club channels as its primary growth engines.
North America saw all recent growth from digital, with KMB gaining a seven-point online share edge.
Club channels posted double-digit gains, driven by consumer migration and improved retailer assortments.
Kimberly-Clark Corporation's (KMB - Free Report) third-quarter fiscal 2025 performance underscores a pivotal shift in the company’s growth model, with digital and club channels emerging as the primary growth engines. This transition reflects evolving consumer habits and supports the company’s strategy to align its portfolio with evolving purchasing behavior. As shoppers increasingly favor convenience, value and flexibility, these channels are proving essential to sustaining long-term momentum.
In North America, digital channel has become the centerpiece of growth. Management reported that 99% of last year’s growth originated from online channels, and this year the figure reached the 100% mark. This digital success is further reinforced by a substantial share advantage. KMB's share is higher by a remarkable seven points in digital channels compared with its traditional brick-and-mortar footprint.
The club channel also shows continued robust performance with double-digit growth. This expansion is driven by both consumer migration to the club format and favorable assortment changes at major retailers. While the heavy skew toward club packs creates a slight negative mix headwind for U.S. diapers in the short term, this expansion ensures Kimberly-Clark is effectively meeting value-seeking consumers with larger pack sizes.
This strong channel execution proves that KMB is winning where consumers are choosing to shop. By establishing a dominant position in e-commerce and maximizing presence in high-volume club stores, Kimberly is ensuring its long-term base is resilient and aligned with modern consumer purchasing trends. With greater visibility, faster feedback and broader consumer reach, these platforms represent a structural tailwind that solidifies the company’s competitive position.
KMB, which competes with Village Farms International (VFF - Free Report) and Ollie's Bargain Outlet (OLLI - Free Report) , has seen its shares decline 22.7% in the past six months as compared with the industry’s fall of 12.4%. Meanwhile, shares of Village Farms and Ollie's Bargain have rallied 186.5% and 4.7%, respectively.
Image Source: Zacks Investment Research
Kimberly’s forward 12-month price-to-earnings ratio of 15.17 reflects a lower valuation than the industry’s average of 18.42. TGT has a Value Score of D. KMB is trading at a discount to Village Farms (with a forward 12-month P/E ratio of 15.19) and Ollie's Bargain (27.75).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMB’s 2025 earnings implies a year-over-year decline of 12.6%, while the same for 2026 indicates growth of 11.3%. Earnings estimates for 2025 and 2026 have been southbound by four cents and upbound by 9 cents per share, respectively, in the past 30 days.
Image: Bigstock
KMB Accelerates Growth Through Digital & Club Channel Expansion
Key Takeaways
Kimberly-Clark Corporation's (KMB - Free Report) third-quarter fiscal 2025 performance underscores a pivotal shift in the company’s growth model, with digital and club channels emerging as the primary growth engines. This transition reflects evolving consumer habits and supports the company’s strategy to align its portfolio with evolving purchasing behavior. As shoppers increasingly favor convenience, value and flexibility, these channels are proving essential to sustaining long-term momentum.
In North America, digital channel has become the centerpiece of growth. Management reported that 99% of last year’s growth originated from online channels, and this year the figure reached the 100% mark. This digital success is further reinforced by a substantial share advantage. KMB's share is higher by a remarkable seven points in digital channels compared with its traditional brick-and-mortar footprint.
The club channel also shows continued robust performance with double-digit growth. This expansion is driven by both consumer migration to the club format and favorable assortment changes at major retailers. While the heavy skew toward club packs creates a slight negative mix headwind for U.S. diapers in the short term, this expansion ensures Kimberly-Clark is effectively meeting value-seeking consumers with larger pack sizes.
This strong channel execution proves that KMB is winning where consumers are choosing to shop. By establishing a dominant position in e-commerce and maximizing presence in high-volume club stores, Kimberly is ensuring its long-term base is resilient and aligned with modern consumer purchasing trends. With greater visibility, faster feedback and broader consumer reach, these platforms represent a structural tailwind that solidifies the company’s competitive position.
Kimberly’s Price Performance, Valuation & Estimates
KMB, which competes with Village Farms International (VFF - Free Report) and Ollie's Bargain Outlet (OLLI - Free Report) , has seen its shares decline 22.7% in the past six months as compared with the industry’s fall of 12.4%. Meanwhile, shares of Village Farms and Ollie's Bargain have rallied 186.5% and 4.7%, respectively.
Image Source: Zacks Investment Research
Kimberly’s forward 12-month price-to-earnings ratio of 15.17 reflects a lower valuation than the industry’s average of 18.42. TGT has a Value Score of D. KMB is trading at a discount to Village Farms (with a forward 12-month P/E ratio of 15.19) and Ollie's Bargain (27.75).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMB’s 2025 earnings implies a year-over-year decline of 12.6%, while the same for 2026 indicates growth of 11.3%. Earnings estimates for 2025 and 2026 have been southbound by four cents and upbound by 9 cents per share, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Kimberly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.