Kimberly-Clark cuts annual forecasts as China quality claims hurt diaper sales

The unexpected challenges in a key international market overshadowed cost-saving efforts, resetting expectations for investors who had been guided for stronger growth.

Kimberly-Clark, on track to complete its roughly $40 billion acquisition of Kenvue KVUE.N by the year-end, now expects 2026 organic sales growth to trail the weighted average growth of its categories and markets by about 100 basis points. Those categories grew about 2% over the last 12 months.

It had previously forecast growth in line with or above the then weighted category average of about 2.5%.

The company expects annual adjusted earnings per share to grow at a high-single-digit rate on a constant-currency basis, compared with its earlier forecast for double-digit growth.

Kimberly-Clark labeled the disruption a "one-time external impact". It will temper organic growth in International Personal Care segment this year by three to four percentage points and hold back operating profit growth by 10 to 12 percentage points, COO Russ Torres said, "as we invest aggressively to defend our franchise".