The maker of Huggies diapers and Cottonelle toilet paper said it expects to charge higher prices through 2022 in an effort to offset rising costs.
Kimberly-Clark Corp. on Friday reported its second-straight quarterly sales decline as well-stocked Americans bought less toilet paper and paper towels in a largely reopened economy.
Organic sales, a measure that strips out currency effects and deals, fell again, down 3%. Rising materials costs sliced profit and margins for the second quarter. Earnings fell more than 40%, worse than Wall Street anticipated.
Americans are cutting back on pandemic staples, from paper towels to cleaning wipes, just as product makers face soaring costs.
“Clearly our results did not turn out as expected,” Kimberly-Clark Chief Executive Mike Hsu said Friday in a call with analysts.
