- Kenvue Inc. (KVUE, Financial) reports a 3.9% decrease in net sales for Q1 2025.
- The company achieved a milestone by completing Transition Services Agreement exits in April.
- Kenvue updates its fiscal year 2025 outlook due to incremental tariff costs and currency impacts.
Kenvue Inc. (KVUE) announced financial results for the first quarter of 2025, ending March 30, reporting a 3.9% decline in net sales compared to the previous year. This decline includes a 1.2% drop in organic sales and a 2.7% negative impact from foreign currency fluctuations.
Despite these challenges, the company's gross profit margin slightly improved to 58.0%, up by 40 basis points from the previous year's 57.6%. However, the adjusted gross profit margin saw a slight contraction, decreasing by 20 basis points to 60.0% over the same period.
Kenvue achieved a notable milestone in April by completing its Transition Services Agreement exits, a significant step in its strategic separation initiatives. Meanwhile, the company's operating income margin increased to 14.9%, from 14.1% in the previous year, despite the pressures faced during the period.
The company has updated its fiscal year 2025 outlook, reflecting the expected impact of higher costs from tariffs and ongoing foreign exchange rate challenges. Kenvue anticipates net sales growth of 1% to 3% year-over-year, with organic sales expected to grow by 2% to 4%.
Kenvue continues to focus on activating its brands and implementing cost optimization strategies to drive sustainable and profitable growth. The company remains agile in navigating the evolving macroeconomic environment to mitigate financial impacts.
