Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
NEW YORK - Kenvue Inc. (NYSE:KVUE), a consumer health giant with a market capitalization of $41 billion and impressive gross profit margins of 58%, has appointed board member Kirk Perry as interim CEO and launched a strategic review process as the company reported preliminary second-quarter sales declined 4.0%, according to a company statement Monday. InvestingPro analysis shows the company maintains a fair financial health score, with particularly strong profitability metrics.
Perry, who joined Kenvue’s board in December 2024, immediately replaces Thibaut Mongon, who has departed the company and stepped down from the board. Perry previously served as President and CEO of Circana, a data analytics provider, and held senior positions at Google and Procter & Gamble.
"I have seen firsthand Kenvue’s many strengths and share the Board’s confidence in the Company’s growth and value creation opportunities," Perry said in the press release.
The company, which owns brands including Tylenol, Neutrogena, and Listerine, reported preliminary second-quarter organic sales declined 4.2% compared to the same period last year. Preliminary diluted earnings per share are expected to be between $0.21 and $0.22, while adjusted diluted earnings per share are projected between $0.28 and $0.29. Despite current challenges, InvestingPro data indicates net income is expected to grow this year, though the stock currently trades at a relatively high P/E multiple of 38x.
Kenvue’s board has established a Strategic Review Committee to evaluate various alternatives, including potential changes to the company’s brand portfolio. The committee is being advised by Centerview Partners and McKinsey & Company.
"The actions announced today are to ensure we have the right talent, brand portfolio and operational foundation to fully capitalize on those strengths, accelerate profitable growth and best position the Company for future success," said Larry Merlo, Kenvue’s Board Chair.
The company plans to report complete second-quarter results on August 7, when it will also revise its full-year 2025 outlook. Executive search firm Heidrick & Struggles is assisting in the search for a permanent CEO.
In other recent news, Kenvue Inc. has been named to the Fortune 500 list, ranking at number 281, with reported sales of $15.5 billion for the fiscal year 2024. The company is also exploring the sale of several smaller brands from its skin health and beauty portfolio, such as Clean & Clear and Maui Moisture, as part of a strategic effort to streamline operations. This potential divestiture is reportedly being guided by Goldman Sachs, although no final decision has been made. Meanwhile, Goldman Sachs maintained a Neutral rating on Kenvue, citing growth challenges and a more pressured second quarter than anticipated. The firm noted mixed trends across Kenvue’s business segments, with specific challenges such as tariff policy impacts and retailer inventory de-stocking risks. Jefferies analysts reiterated their Buy rating for Kenvue, maintaining a price target of $27.00, despite recent share declines and challenges in the consumer landscape. CEO Thibaut Mongon highlighted seasonal demand concerns at the dbAccess Global Consumer Conference, noting that allergy and sun care products have not met expectations due to a prolonged winter. These developments are important considerations for investors evaluating Kenvue’s current position and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.