Yesterday, Kenvue Inc. announced financial results for the second quarter ended June 29, 2025. Interim Chief Executive Officer Kirk Perry highlighted the Company’s focus on operational execution, strategic portfolio management, and advancing its comprehensive review of strategic alternatives to unlock long-term value.
For the quarter, net sales declined 4.0% year-over-year with $3.8 billion, reflecting a 4.2% drop in organic sales partially offset by a 0.3% benefit from foreign currency. The organic sales decrease was driven by a 0.9% unfavorable value realization from planned price investments and a 3.3% volume decline, impacted by slower category growth, weak seasonal demand in North America, trade inventory fluctuations, and shipment timing changes in China.
Operating income margin improved to 18.0% from 3.9% last year, largely due to the absence of prior-year non-cash impairment charges, while adjusted operating income margin remained essentially flat at 22.7%.
In segments, in H1 of 2025, the Self Care recorded $3.22 billion, down 3.3% year on year. The Skin Health and Beauty recorded $2.03 billion, down 5.6% year on year. The Essential Health recorded $2.3 billion, down 3.4% year on year.
Chief Financial Officer Amit Banati noted that the Company is revising its full-year 2025 outlook to reflect year-to-date performance and expectations for the remainder of the year amid a challenging macroeconomic environment. Kenvue now expects full-year net sales and organic sales to decline in the low-single digits, with adjusted operating income margin down year-over-year and adjusted diluted EPS between $1.00 and $1.05, including a low-single-digit unfavorable currency impact.
