Kenvue reports early sales slump after brand cutback rumors

Kenvue has reported a preliminary sales decline and is undergoing a leadership shakeup, potentially slimming its brand portfolio.

The consumer health company preliminarily posts a 4% drop in reported net sales for the second quarter of 2025, with organic sales falling 4.2%. At the same time, the company announced CEO Thibaut Mongon’s immediate departure and Kirk Perry’s appointment as interim CEO.

Alongside the leadership transition, Kenvue confirmed it is in the middle of a strategic review that could lead to divestitures and portfolio simplification. “The board’s strategic review is underway, and we are considering a broad range of potential alternatives, including ways to simplify the company’s portfolio and how it operates,” says Larry Merlo, chair of the board.

Preliminary financial figures show that while earnings per share sit between US$0.21 and US$0.22, adjusted results are significantly higher.

A full earnings report is expected on August 7.

Core challenges

The company became officially independent in 2023, following its separation from Johnson & Johnson. While the spinout positioned it as one of the largest pure-play consumer health companies, the past few quarters have shown the transition has not been smooth.

Kenvue’s preliminary report says it brought in US$3.8 billion in net sales in the second quarter of 2025, down from US$4 billion in the same period last year. Organic sales, which exclude the external impact of currency shifts and portfolio changes, declined by 4.2%.

Currency had a 0.3% positive effect, while acquisitions and divestitures contributed a negative 0.1%. These adjustments resulted in a reported net sales decrease of 4% year-over-year.

The company has continued to absorb spinout-related expenses, including deferred asset transfers and compensation adjustments. These “founder share” expenses and structural handovers remain a hangover from its former parent.

Kenvue brought in US$3.8 billion in net sales in the second quarter of 2025.Potential brand cuts

Kenvue’s board has launched a strategic business review, overseen by a newly formed Strategic Review Committee and advised by Centerview Partners and McKinsey & Company. The initiative aims to simplify operations, improve execution, and unlock long-term shareholder value.

No brand divestitures have been officially announced, but the board is considering a “broad range of potential alternatives, including ways to simplify the company’s portfolio and how it operates.”

According to Reuters, which cites unnamed sources, Kenvue is reportedly considering selling several underperforming skin health and beauty brands, including Clean & Clear, Maui Moisture, Neostrata, Bebe, and Dr.Ci:Labo.

These brands under potential review are considered smaller names within Kenvue’s portfolio and are estimated to generate over US$500 million in annual revenue collectively. 

In the third quarter of 2024, Kenvue also reported a 4.2% sales decline in its Skin Health and Beauty division, which includes brands like Neutrogena and Aveeno.

Then CEO Mongon cited market softness and underperformance in sun care as major challenges. The results highlighted persistent struggles that may now be driving a more aggressive effort to reshape the company’s brand portfolio.

Kenvue says it will provide updates as the strategic review progresses.

Kenvue is reportedly considering selling several underperforming skin health and beauty brands.Leadership turnover

Effective immediately, Kirk Perry has taken over as interim CEO of Kenvue, following the departure of Thibaut Mongon, who also stepped down from the board. Perry has served as a Kenvue board member since December 2024.

He previously took on roles as CEO of data analytics firm Circana, president of Global Client and Agency Solutions at Google, and multiple senior positions at Procter & Gamble.

The search for a permanent CEO is underway. 

Beauty companies are under mounting pressure to modernize, with increasing focus on integrating technology across product development, operations, and consumer engagement.

Personal Care Insights recently reported that digital transformation in the personal care sector has surged by 183% since 2019, yet many brands still rely on outdated systems that limit their ability to respond to market shifts.

With his background in digital strategy, data analytics, and AI-driven business transformation, Perry is being positioned to help Kenvue build a more agile, tech-enabled business.

The board says aligning Perry’s leadership expertise with the company’s future direction is a key step in driving growth and long-term value creation.