Kenvue Reports Third Quarter 2025 Results

Kenvue Inc., the world's largest pure-play consumer health company by revenue, has released its financial results for the third quarter of 2025. The company, known for its iconic brands such as Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, reported a decrease in net sales but maintained confidence in its strategic initiatives and future outlook.

Financial Highlights

For the third quarter ended September 28, 2025, Kenvue reported a net sales decrease of 3.5% compared to the same period last year. The decline was primarily due to a 4.4% drop in organic sales, partially offset by a 1.0% benefit from foreign currency. The gross profit margin improved slightly to 59.1%, up from 58.5% in the prior year period. Adjusted gross profit margin also saw an increase to 61.2% from 60.7%.

Diluted earnings per share (EPS) were $0.21, a slight increase from $0.20 in the prior year period. Adjusted diluted EPS remained steady at $0.28. The company’s operating income margin was relatively stable at 16.7%, while the adjusted operating income margin saw a slight decline to 21.5% from 22.1%.

Business and Operational Highlights

The decrease in organic sales was driven by a 4.0% volume decrease and a 0.4% unfavorable value realization, reflecting planned strategic price investments. The company noted that volumes were impacted by changes in shipment timing in China, trade inventory reductions in certain customers, and a sequential deceleration in the global weighted category growth rate, particularly in the Self Care segment.

Despite these challenges, Kenvue's gross profit margin benefited from productivity gains attributable to global supply chain optimization initiatives, which helped offset the impact of lower volume, inflationary pressures, tariffs, and strategic price investments.

Strategic Initiatives and Corporate Developments

Kenvue affirmed its outlook for the full year 2025, expecting net sales and organic sales to be down by low-single-digits, with an approximately neutral impact from foreign currency translation. The company also expects adjusted operating income margin to decline year-over-year, with adjusted diluted EPS projected to be in the range of $1.00 to $1.05.

In terms of leadership, Kirk Perry has been named the permanent Chief Executive Officer, effective immediately. Additionally, Carlos De Jesus has been appointed as Group President, North America, and Jonathan Halvorson will take on the newly created role of Chief Digital and Marketing Officer.

Management's Perspective

CEO Kirk Perry expressed confidence in the company's strategic direction, stating, "Third quarter results keep us on track to deliver our full year guidance, and we are confident in the decisive actions we are taking to accelerate Kenvue’s performance and unlock the inherent value of our brands."

Future Outlook

Kenvue's outlook for the full year 2025 remains positive, with expectations of low-single-digit declines in net sales and organic sales. The company anticipates adjusted diluted EPS to be between $1.00 and $1.05, including a low-single-digit unfavorable impact from foreign currency. This outlook is based on current foreign exchange rates and the estimated impact of tariffs in place as of October 31, 2025.

Original SEC Filing: Kenvue Inc. [ KVUE ] - 8-K - Nov. 03, 2025