NEW YORK — Kenvue Inc., the maker of Band-Aid, Tylenol, and Neutrogena, has lowered its 2025 sales and earnings guidance while pressing forward with a strategic review, as analysts trimmed price targets on the stock amid signs of a tougher year ahead.
The consumer health company, spun off from Johnson & Johnson in 2023, now expects net sales to decline in the low single digits, reversing its earlier forecast of a 1%–3% increase, and sees adjusted earnings of $1.00 to $1.05 per share, below Wall Street’s $1.13 consensus. The outlook reflects softer consumer spending, margin pressure, and ongoing weakness in its skin health and beauty segment.
Second-quarter results underscored the challenges: revenue fell 4% year-over-year to $3.84 billion, missing estimates of $4.18 billion, while organic sales slid 4.2%. Adjusted EPS of $0.29 topped expectations by a penny but came in well below last year’s $0.35. Kenvue attributed the decline to weaker consumption, shifts in trade inventory, and increased promotional activity.
Leadership changes are reshaping the company. CEO Thibaut Mongon was ousted in July, with former Google and Procter & Gamble executive Kirk Perry stepping in as interim chief. In May, Amit Banati, former CFO of Kellanova, joined as the finance chief. Perry told analysts he plans to draw on his consumer brand experience to deliver “reliable and consistent results” as the board considers “a broad range of potential alternatives” — a process some investors believe could lead to a sale of all or part of the business.
The earnings miss and guidance cut prompted analyst moves. Investment bank Jefferies lowered its price target to $25 from $26 while maintaining a Buy rating, citing “a tougher road ahead” in 2025 and warning of softer top-line trends and margin compression. Still, the firm sees long-term value in Kenvue’s brand portfolio and says reinvestment will be key to turning around performance. Canaccord Genuity lowered its target to $26 from $29 but maintained a Buy rating. Meanwhile, Barclays, Citigroup, Bank of America, and UBS all reduced their targets in July.
Kenvue shares opened on Thursday at $21.45, near the lower end of their 12-month range of $19.75–$25.17, giving the company a market value of approximately $41 billion and a P/E ratio of nearly 39. The company raised its quarterly dividend to $0.2075 per share, payable Aug. 27, representing a yield of 3.9%.
RBC Capital Markets analyst Nik Modi summed up the challenge: “Kenvue is clearly a ‘show me’ story” that must prove it can deliver steady improvement before the stock can regain momentum.”
