Kenvue stock rises as CEO departs, board initiates strategic review

Published 14/07/2025, 14:16
Kenvue stock rises as CEO departs, board initiates strategic review

Investing.com - Kenvue Inc (NYSE:KVUE), a $41 billion consumer health company, saw its stock rise to $21.34 after announcing CEO Thibaut Mongon has departed and stepped down from the board, with Kirk Perry named as interim CEO effective immediately. According to InvestingPro data, the company maintains impressive gross profit margins of 58%.

The company’s board has initiated a comprehensive review of strategic alternatives and established a Strategic Review Committee to oversee the process, according to Citi analyst Filippo Falorni, who maintained a Neutral rating and $24.50 price target on the stock. This target aligns with the broader analyst range of $22-$29, as reported by InvestingPro, which also indicates the stock is currently fairly valued based on its proprietary Fair Value model.

Kenvue indicated the strategic review will consider a broad range of potential alternatives, including optimizing the company’s brand portfolio, while improving execution and enhancing operating performance to accelerate profitable growth.

The company also released preliminary second-quarter 2025 results, reporting net sales down 4.0% compared to consensus estimates of -1.6%, organic sales growth of -4.2% versus consensus of -0.5%, and adjusted earnings per share of $0.28-$0.29 compared to consensus of $0.28.

Kenvue is scheduled to report its full second-quarter 2025 financial results on August 7, with Citi expecting a positive market reaction to the leadership change and strategic review announcement.

In other recent news, Kenvue Inc. has reported preliminary second-quarter sales, indicating a decline of 4.0%, with organic sales dropping by 4.2% compared to the same period last year. The company expects preliminary diluted earnings per share to be between $0.21 and $0.22, with adjusted diluted earnings per share projected between $0.28 and $0.29. Amid these developments, Kenvue announced a CEO transition, appointing board member Kirk Perry as interim CEO following the departure of Thibaut Mongon. Alongside this leadership change, the company has launched a strategic review process to explore various alternatives, including potential changes to its brand portfolio. Reports suggest Kenvue is considering divesting several smaller brands from its skin health and beauty portfolio, engaging Goldman Sachs to assist with the process. Analysts have weighed in on these developments, with Goldman Sachs maintaining a Neutral rating due to ongoing challenges, while Jefferies reiterated a Buy rating, expressing confidence in the company’s recovery strategy. Kenvue plans to report full second-quarter financial results on August 7 and will revise its full-year 2025 outlook.

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