Kenvue stock slides after missing Q4 estimates

Published 06/02/2025, 13:16
© Reuters

Investing.com -- Kenvue Inc. reported fourth-quarter earnings and revenue that fell short of analyst expectations, while providing a cautious outlook for 2025. The consumer health company’s stock slipped 1.9% following the announcement.

For the fourth quarter, Kenvue (NYSE:KVUE) posted adjusted earnings per share of $0.26, missing the analyst estimate of $0.31. Revenue came in at $3.7 billion, below the consensus forecast of $3.95 billion. Net sales decreased 0.1% YoY, though organic sales grew 1.7%.

The company’s full-year 2024 net sales increased 0.1% to $15.5 billion, with organic sales growth of 1.5%. Kenvue’s gross profit margin improved 200 basis points for the year.

Looking ahead to 2025, Kenvue expects net sales change between -1% and +1% YoY, with organic sales growth of 2% to 4%. The company anticipates a 3% headwind from foreign currency translation.

"We delivered on our 2024 profit commitments despite headwinds that resulted in softer than expected sales growth and we enter 2025 as a more competitive company with stronger foundations," said CEO Thibaut Mongon.

CFO Paul Ruh added, "We expect to drive further productivity and operational efficiency gains, which will fund our planned increase in brand investments, positioning us to grow adjusted operating margin for the year."

Kenvue projects flat to 2% YoY growth in adjusted diluted earnings per share for 2025, including a mid-single-digit unfavorable impact from foreign currency.

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