Kimberly-Clark Corporation (NYSE:KMB) Q1 2018 Earnings Conference Call - Final Transcript
Apr 23, 2018 • 10:00 am ET
Or was that down quite substantially? I assume it must be, actually.
I don't have that number right now.
All right. Thank you so much.
Our next question comes from Lauren Lieberman with Barclays.
Just one quick question on freight costs. It's just a topic across the industry, and it's not something we've talked about much. So, what do you guys think in terms of freight inflation? Is it generally in line with your going into the year expectations? Or is that something we should just be thinking about as well?
It's an issue. We ship high Q low value items. So, freight's a big cost for us. We are less of a spot freight buyer and more of a contract freight buyer because of that. And so, we probably have been buffered from some of the spot gyrations that maybe some that are structured a little differently or were afraid of the smaller part of their cost, they might manage it in a different way. So, in our high-volume freight lanes, we have contractual relationships that we pay higher diesel, but we aren't paying some of the other costs. We may eventually have some pass through when those contracts are renegotiated, but for the moment, we're not suffering quite as much as others, if that's helpful.
That's very helpful. Thank you so much.
Our next question comes from Ali Dibadj with Bernstein.
Hey, guys. Thanks for the follow-up as well. So, two things. One is North America e-commerce clearly is one of the focus areas for you. Can you give us a sense of your online share versus your offline share and a sense of the pace of that closing if at all?
Yeah. I mean, I'd say broadly, in total, our online share is pretty similar to our offline share. In fact, it might even be a little bit higher because there's no private label typically in your online share. But it can vary a little bit by category. But I would say we're competitive. Because there is less private label online, we would probably want it to be even higher than our offline share.
And Ali, we vary by category. So, a little bit ahead maybe in maybe tissue and adult and fem care. And maybe we got off to a little bit of a slow start years ago on the diaper category. But we are gaining ground in diapers as well.
Okay. And no private label except the private label that you guys might be making or might not be making for Amazon. So, I wanted --
You couldn't resist that one, Ali, I guess. Just trying to churn the water and see if I'd take the bait? Is that the strategy this morning?
No, no. Look, you guys are very good with that stuff. On private label in general, look, I get it for you guys. I get it's less than 5% of your sales. Can you give us