Strong Market Share in Self Care
In the U.S., 83% of Kenvue's Self Care business held or gained market share, with ZYRTEC growing household penetration and Tylenol achieving its 12th consecutive quarter of share improvement.
Kenvue, Inc.
· KVUE
July 14th, 2025
Summary
- Earnings Call Date:
- 2025-07-14
- Change Since:
- -9.83%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
NeutralThe earnings call highlighted Kenvue's strengths in market share gains and leadership improvements but was overshadowed by underwhelming financial performance and challenges in key markets. The revised guidance and focus on strategic alternatives suggest a period of transition and uncertainty.
Company Guidance
During Kenvue's Second Quarter 2025 Earnings Conference Call, the company revised its guidance for fiscal 2025, projecting organic sales to decline in the low single digits with a roughly neutral impact from currency fluctuations. The adjusted operating margin is expected to contract due to strategic price investments, fixed cost deleverage, and inflationary pressures, which productivity initiatives may not fully offset. Consequently, adjusted diluted EPS is anticipated to range between $1 to $1.05, considering a low single-digit drag from currency. The company highlighted a challenging second quarter, with organic sales declining by 4.2% and adjusted operating margin decreasing by 10 basis points to 22.7%, leading to an adjusted diluted EPS of $0.29. Despite these results, Kenvue remains committed to enhancing operational rigor, improving execution, and strategically reviewing alternatives to unlock shareholder value.
Sequential Improvement in Skin Health and Beauty
Neutrogena Face returned to year-over-year consumption growth in the U.S. during Q2, and global consumption of Skin Health and Beauty brands stabilized for the first time in over a year.
Leadership and Capabilities Strengthening
Kenvue appointed new leaders, including Andy Dasgupta and Mike Wondrasch, and enhanced capabilities in marketing, sales, digital, and AI.
Success in EMEA and Latin America
The company saw positive performance in EMEA and Latin America, contributing to a more stable global consumption trend.
Operator
Hello, and welcome to Kenvue's Second Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sofya Tsinis, Head of Investor Relations for Kenvue.
Sofya Tsinis
Good morning, everyone, and welcome to Kenvue's Second Quarter 2025 Earnings Conference Call. I'd like to extend a special welcome to Kirk Perry, Interim Chief Executive Officer; and Amit Banati, Chief Financial Officer, as they participate in their first earnings call with us today. Before we get started, I'd like to remind you that today's call includes forward-looking statements regarding, among other things, our operating and financial performance, market opportunities and growth. These statements represent our current beliefs, expectations or assumptions about future events and are subject to various risks, uncertainties and changes that are difficult to predict and could cause our actual results to differ materially. For information regarding these risks and uncertainties, please refer to our earnings materials related to this call posted on our website and our filings with the SEC. During this call, we will reference certain non-GAAP financial information. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with the U.S. GAAP.
These non-GAAP financial measures should be viewed in conjunction with the most directly comparable U.S. GAAP financial measures and are not presented as substitutes for or superior...
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