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Jun 29, 2025
Kenvue Q2 2025 Earnings Report
Kenvue reported a decrease in net sales and organic sales, with mixed results across profitability margins and a significant increase in net income and EPS compared to the prior year, which was impacted by asset impairment charges.
Key Takeaways
Kenvue experienced a decline in net sales and organic sales in Q2 2025, primarily due to unfavorable value realization and volume decline. Despite this, the company reported a substantial increase in net income and diluted EPS compared to the prior year, largely due to the absence of significant asset impairment charges that affected the previous year's results. Gross profit margin and adjusted gross profit margin contracted, while operating income margin saw a significant improvement.
Net sales decreased by 4.0% to $3,839 million, primarily driven by a 4.2% organic sales decline.
Diluted earnings per share increased significantly to $0.22 from $0.03 in the prior year, while Adjusted diluted earnings per share decreased to $0.29 from $0.32.
Gross profit margin contracted to 58.9% and Adjusted gross profit margin declined to 60.9%, impacted by unfavorable mix, inflationary pressures, and strategic price investments.
Operating income margin improved to 18.0% from 3.9% in the prior year, with Adjusted operating income margin at 22.7%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Kenvue is adjusting its full-year 2025 outlook to reflect year-to-date results and current expectations for the second half, considering the dynamic external environment and underlying business fundamentals.
Positive Outlook
- Commitment to improving execution and performance.
- Advancing a comprehensive strategic alternatives review to deliver inherent value.
- Focus on accelerating profitable growth.
- Confidence in taking appropriate actions to deliver sustainable value for shareholders.
- Appointment of experienced leaders to key roles (Group President, Asia Pacific and Chief Technology & Data Officer).
Challenges Ahead
- Current results do not reflect the Company’s full potential.
- Dynamic external environment impacting outlook.
- Underlying business fundamentals requiring adjustment to outlook.
- Unpredictability of discrete items like foreign exchange, acquisitions, or divestitures impacting GAAP reconciliation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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