Kenvue misses quarterly estimates as inflation, tariffs squeeze margins
Kenvue misses quarterly estimates as inflation, tariffs squeeze margins Aug 6 (Reuters) - Kenvue KVUE.N narrowly missed Wall Street estimates for second-quarter results on Thursday as inflation, tariffs and currency-related costs squeezed margins.
The consumer-health company, currently in the midst of a $40 billion buyout by Kimberly-Clark KMB.O, expects the deal to close in the fourth quarter of 2026.
Kenvue's adjusted gross margin fell to 60.2% from 60.9% a year earlier, as inflation, tariffs and currency-related costs outweighed some of the benefits from supply-chain savings and higher prices.
The maker of Tylenol painkillers and Neutrogena skincare products posted second-quarter adjusted profit of 31 cents per share, marginally below analysts' average estimate of 32 cents, according to data compiled by LSEG.
Quarterly sales rose 3% to $3.96 billion, but slightly missed analysts' estimate of $3.97 billion.
Self Care sales rose 2.2% to $1.59 billion on improved Tylenol performance in the U.S., while Zyrtec and Pepcid gained market share.
Skin Health and Beauty sales rose 5.1% to $1.11 billion, driven by higher sales of hair- and face-care products, including OGX and Neutrogena.
Essential Health sales, which include Listerine and Band-Aid, increased 2.3% to $1.25 billion.
The company expects about $250 million in pre-tax charges in 2026 from a restructuring program aimed at simplifying operations, improving its supply chain and lowering costs.
(Reporting by Kunal Das in Bengaluru; Editing by Vijay Kishore)
((Kunal.Das2@thomsonreuters.com;))