Recently, Kenvue Inc. is reportedly exploring a potential sale or spin-off of its skin health and beauty division, which includes well-known brands such as Neutrogena, Aveeno, and Clean & Clear. The move comes as part of a wider strategic review following a challenging year marked by leadership changes and investor pressure.
According to sources familiar with the matter, the division — despite experiencing declining sales — could fetch a valuation between US$6 billion and US$9 billion. While early interest has emerged from potential buyers, Kenvue is said to be considering divesting only non-core brands at this stage.
In recent years, Kenvue’s skin health and beauty division has continued to face mounting pressure. According to a review by Qingyan, the division’s performance began to decline in the third quarter of 2023, marking five consecutive quarters of net sales decline (from Q3 2023 to Q3 2024). Although a slight rebound of 1% was recorded in the fourth quarter of 2024, sales soon fell again in the first and second quarters of this year.
Looking at brand performance, Neutrogena, for instance, has struggled to win over Gen Z consumers, losing market share to competitors such as L’Oréal Group’s CeraVe. By 2021, CeraVe had already replaced Neutrogena as the most dermatologist-recommended skincare brand.
The review underscores Kenvue’s efforts to streamline its operations and enhance shareholder value amid a difficult market and growing legal challenges. A sale or spin-off of its beauty arm would allow the company to sharpen its focus on its core over-the-counter and healthcare portfolio, while freeing up capital to navigate ongoing uncertainty.
