July 23 (Reuters) - Kleenex tissue maker Kimberly-Clark ( KMB )

on Tuesday raised its forecast for full-year profit

after beating Wall Street estimates for second-quarter earnings,

betting on higher prices and steady demand for its personal care

products.

Demand for Kimberly-Clark's ( KMB ) products such as skin health and

hygiene held steady, on the back of double-digit volume growth

in China that helped lift volumes in its personal care business,

a major revenue contributor.

The company continues to see resilient purchase patterns and

healthy volumes in its product categories without a lot of trade

down, Chris Jakubik, head of Kimberly Clark's ( KMB ) investor relations

told Reuters.

The company's overall volumes in the quarter ended June

30 rose 1%, while its prices were up 2%.

However, the company posted quarterly sales of $5.03

billion, missing analysts' estimates of $5.10 billion as some

retailers pared back on orders.

Consumer goods companies have been struggling with

increasing competition from private label brands eating into

their shelf space at retailers.

"In the second quarter, we had some inventory destocking

that actually held back our volume growth in the quarter and in

the first half," Jakubik added.

Shares of the company, which maintained its annual organic

sales forecast, were down about 3% in early trading.

In North America, the company's sales declined for its

consumer tissue and Kimberly-Clark ( KMB ) professional businesses.

The company's gross margins for the April-to-June quarter

expanded by 290 basis points to 36.9%.

The Huggies diaper maker's quarterly profit of $1.96 per

share topped analysts' estimates of $1.71 per share.

The company also expects annual earnings per share to grow

at a mid-to-high teens percentage rate, up from the previously

expected low-teens percentage rate.