Kimberly-Clark Corp. KMB has recently announced that it is extending its partnership with Walt Disney Parks and Resorts. As part of the alliance, Kimberly-Clark will increase the availability and offering of its brands to Walt Disney World Resort, Disneyland Resort and Disney Cruise Line.
Kimberly-Clark is offering its brands on various fronts including The Baby Care Centers hosted by Huggies. The Baby Care Centers makes it easier for parents to care for children and comfortably manage tasks like changing diapers during their visits to Walt Disney World Resort and Disneyland Resort. Additionally, parents can purchase Kimberly-Clark's baby care and family care products such as Huggies diapers and wipes, Kleenex tissues, and Pull-Ups training pants in the Baby Care Centers and select retail areas throughout Walt Disney World Resort and Disneyland Resort. In addition, parents can take strollers for their little babies on a rental basis, which will be sponsored by the Huggies brand.
Also, Disney Junior – Live On Stage! will be sponsored by the Pull-Ups brand at Walt Disney World Resort and Disneyland Resort.
We note that Kimberly-Clark’s diaper segment has been witnessing lower market share and higher competitive promotional activity. Kimberly-Clark’s Huggies diapers are competing with Procter & Gamble’s cheaper Luvs and upscale Pampers offerings. Notably, parents are shifting away from Huggies and buying either less expensive or premium diaper offerings. This is hurting the company’s market share.
Therefore, this extended relationship between Kimberly-Clark and Disney Consumer Products, Media Networks, and The Walt Disney Studios will surely benefit the company as it will be able to reach out to millions of families visiting the parks annually.
Overall, Kimberly-Clark’s profits have been aided by its cost saving initiatives and continued product innovation. The company also achieved higher organic sales on the back of volume growth and better pricing in the last few consecutive quarters.
In October, Kimberly-Clark posted better-than-expected results for the third quarter of 2015 and raised the low end of its previous guidance range for full-year adjusted earnings and organic sales growth, despite currency headwinds.
Kimberly-Clark has a Zacks Rank #3 (Hold).
Better-ranked stocks in the consumer staples sector include B&G Foods, Inc. BGS, Omega Protein Corp. OME and Campbell Soup Company CPB. All of them sport a Zacks Rank #1 (Strong Buy).
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