Kenvue Reports Q1 Sales Dip Amid Tariff Pressures and FX Headwinds

THE WHAT?  Kenvue posted a 3.9% decline in net sales for Q1 2025, with foreign exchange and tariff-related costs impacting results and prompting a revised full-year outlook.

THE DETAILS  For the quarter ending March 30, 2025, Kenvue reported net sales of US$3.9 billion, down 3.9% year-over-year, driven by a 1.2% drop in organic sales and a 2.7% foreign exchange headwind. Adjusted gross profit margin contracted by 20 basis points to 60.0%, while adjusted operating income margin fell to 19.8% from 22.0%. Adjusted EPS declined to US$0.24 from US$0.28 in Q1 2024. Despite progress in its post-separation structure, including the successful exit of Transition Services Agreements, the company revised its full-year guidance to reflect the financial impact of tariffs and currency fluctuations. It now expects organic sales growth of 2–4%, with overall net sales rising 1–3%.

THE WHY? Kenvue continues to face inflationary and macroeconomic pressures, particularly from increased tariffs and unfavorable FX rates. However, the company remains focused on executing its Vue Forward initiatives and brand investments, which it views as essential for building long-term, sustainable growth in its personal care and self-care portfolio.

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