Shares of Kimberly-Clark (KMB) - Get Kimberly-Clark Corporation Report dropped Friday after the maker of Scott and Cottonelle toilet paper and Kleenex tissues reported a 12% drop in first-quarter earnings on a 5% decline in revenue.
The company, which also makes Huggies diapers, also lowered its guidance for 2021, noting a more challenging near-term environment.
Shares of the Dallas company fell 5.55% to $132.54 in trading Friday.
For the three months ended March 31, Kimberly-Clark posted earnings of $584 million, or $1.72 a share, down from $660 million, or $1.92 a share, in the year-ago period.
Revenue for the March quarter dropped 5% to $4.74 billion from $5 billion.
Both earnings and revenue missed analysts' estimates.
"Our first-quarter results and updated outlook reflect a volatile and challenging environment," said Chairman and Chief Executive Mike Hsu in a statement.
"First-quarter comparisons were impacted by COVID-19 related stock up in the year-ago period, consumer tissue category softness and commodity inflation. We also experienced temporary supply chain disruptions related to severe weather conditions in the southern part of the United States," he added.
For 2021, the company cut its adjusted earnings per share guidance range to $7.30 from $7.55 from $7.75 to $8, and lowered its organic sales growth outlook to flat to positive 1% from growth of 1% to 2%.
Last month, the consumer-products giant said that it would raise prices on a majority of its products by mid-to-high-single digits percent to offset rising commodity prices.
The price rise will go into effect in late June, the company said in March.