Description

Kenvue’s Guidance Reset: Can New Leadership Fix The Execution Gap?

Kenvue reported second-quarter 2025 results below expectations, with organic sales declining 4.2% year-over-year, primarily due to challenging external factors and internal execution issues. Although global consumption—a metric reflecting actual consumer demand—grew in all segments, it significantly outpaced reported organic sales, highlighting inventory and shipment timing discrepancies. The company experienced particularly adverse seasonal trends and customer inventory dynamics in the Self Care segment, which saw organic sales decline 5.9%, despite strong market share retention and gains, including growth in the U.S. Tylenol brand and ZYRTEC’s leadership despite a soft allergy season. The Skin Health and Beauty segment recorded a 3.7% organic sales decline, though global consumption stabilized for the first time since late 2023, with growth in EMEA, Latin America, and Asia Pacific partly offsetting North America and Asia Pacific softness.