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Kimberly-Clark Appoints Scott Usitalo as Chief Marketing Officer

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Price movement of Kimberly-Clark

Kimberly-Clark (KMB) has a market cap of $47.6 billion. It rose by 1.7% to close at $132.41 per share on June 14, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.4%, 3.2%, and 5.5%, respectively, on the same day. This means that KMB is trading 3.8% above its 20-day moving average, 2.4% above its 50-day moving average, and 8.2% above its 200-day moving average.

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Related ETFs and peers

The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) invests 2.0% of its holdings in Kimberly-Clark. The ETF tracks an index of US consumer cyclical firms selected and weighted by price momentum. The YTD price movement of PSL was 0.18% on June 14, 2016.

The PowerShares High Yield Equity Dividend Achievers Portfolio ETF (PEY) invests 1.7% of its holdings in Kimberly-Clark. The ETF aims to track a yield-weighted index of US companies that have increased their annual dividend for at least ten consecutive years.

The market caps of Kimberly-Clark’s competitors are as follows:

  • The Procter & Gamble Company (PG): $221.8 billion
  • Edgewell Personal Care Company (EPC): $4.8 billion

Kimberly-Clark appointed CMO

Scott Usitalo has been appointed as Kimberly-Clark’s chief marketing officer. Usitalo will report to Tony Palmer, president of global brands and innovation.

Performance of KMB in fiscal 1Q16

Kimberly-Clark reported fiscal 1Q16 net sales of $4,476.0 million, a fall of 4.6% compared to net sales of $4,691.0 million in fiscal 1Q15. Sales of personal care, consumer tissue, and K-C professional segments fell by 4.4%, 5.0%, and 4.0%, respectively, in fiscal 1Q16 compared to fiscal 1Q15. The company’s cost of products sold as a percentage of net sales fell by 2.0%, and its operating profit rose by 7.5% in fiscal 1Q16 compared to the corresponding period last year.

Its net income and EPS (earnings per share) rose to $545.0 million and $1.50, respectively, in fiscal 1Q16 compared to $468.0 million and $1.27, respectively, in fiscal 1Q15. The company reported non-GAAP EPS of $1.53 in fiscal 1Q16, a rise of 7.7% compared to fiscal 1Q15.

KMB’s cash and cash equivalents rose by 2.6%, and its inventories fell by 0.37% in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio rose to 0.96x in fiscal 1Q16 compared to 0.85x in fiscal 4Q15.

For ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.

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