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Kenvue
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Kenvue Reports Third Quarter 2025 Results
November 3, 2025
Net Sales (3.5)%; Organic Sales (4.4)%
Diluted EPS was $0.21; Adjusted Diluted EPS was $0.28
Affirms Outlook for FY'25
Kirk Perry Named Permanent Chief Executive Officer and Company Announced Additional Key Leadership Appointments
SUMMIT, N.J.--(BUSINESS WIRE)-- Kenvue Inc. (NYSE: KVUE) today announced financial results for the third quarter ended September 28, 2025.
"Throughout the third quarter, our team remained focused on our four operating priorities to drive improved performance," said Kirk Perry, Chief Executive Officer. "Third quarter results keep us on track to deliver our full year guidance and we are confident in the decisive actions we are taking to accelerate Kenvue's performance and unlock the inherent value of our brands."
Third Quarter Summary
Net sales decreased 3.5% vs the prior year period, primarily reflecting Organic sales decline of 4.4%, partially offset by foreign currency benefit of 1.0%.
Gross profit margin was 59.1% vs 58.5% in the prior year period. Adjusted gross profit margin was 61.2% vs 60.7% in the prior year period.
Operating income margin was 16.7% vs 16.8% in the prior year period. Adjusted operating income margin was 21.5% vs 22.1% in the prior year period.
Diluted earnings per share were $0.21 vs $0.20 in the prior year period. Adjusted diluted earnings per share were $0.28 both in the current and prior year periods.
The Company is affirming its outlook for Full Year 2025.
Third Quarter 2025 Financial Results
Net Sales and Organic Sales
Third quarter 2025 Net sales decreased 3.5% vs the prior year period, primarily reflecting Organic sales decline of 4.4%, partially offset by foreign currency benefit of 1.0%. Organic sales decline was driven by a 4.0% volume decrease and unfavorable value realization of 0.4%, reflecting planned strategic price investments. Similarly to the second quarter 2025, volumes in the third quarter 2025 were impacted by changes in shipment timing versus last year in China, trade inventory reductions in certain customers, and sequential deceleration in the global weighted category growth rate, reflecting low seasonal incidences impacting Self Care.
Gross Profit Margin and Operating Income Margin
Third quarter 2025 Gross profit margin expanded 60 basis points to 59.1% from 58.5% in the prior year period. Adjusted gross profit margin expanded 50 basis points to 61.2% from 60.7% in the prior year period. The year-over-year change in both measures reflects the savings from productivity gains attributable to our global supply chain optimization initiatives, which helped offset the impact from lower volume, inflationary, tariff, and foreign exchange headwinds, as well as strategic price investment.
Third quarter 2025 Operating income margin was 16.7% vs 16.8% in the prior year period. Third quarter 2025 Adjusted operating income margin was 21.5% vs 22.1% in the prior year period. The year-over-year change in both measures reflects the year-over-year improvement in Gross profit margin and Adjusted gross profit margin, savings from Our Vue Forward, as well as a year-over-year increase in brand support.
Interest Expense, Net and Taxes
Third quarter 2025 Interest expense, net was $93 million vs $96 million in the prior year period.
Third quarter Effective tax rate was 24.3% vs 33.6% in the prior year period. The Adjusted effective tax rate was 24.0% vs 28.9% in the prior year period. The year-over-year reduction in both measures largely reflects an increase in discrete tax benefits and unfavorable tax return true-ups in the third quarter 2024.
Net Income Per Share ("Earnings Per Share")
Third quarter 2025 Diluted earnings per share were $0.21 vs $0.20 in the prior year period and Adjusted diluted earnings per share were $0.28 both in the current and prior year periods.
2025 Outlook
The Company is affirming its outlook for Full Year 2025 as follows:
Net sales and Organic sales are expected to be down low-single-digits, assuming approximately neutral impact from foreign currency translation.
Adjusted operating income margin is expected to decline year-over-year.
Adjusted diluted earnings per share are expected to be in the range of $1.00 to $1.05, including a low-single-digit unfavorable impact from foreign currency.
The outlook is predicated on the current foreign exchange rates and the estimated impact from tariffs in place as of October 31, 2025.
Leadership Appointments
The Company announced today that the Board of Directors has named Kirk Perry as Chief Executive Officer on a permanent basis, effective immediately. Mr. Perry, who had served as Interim Chief Executive Officer since July 14, 2025, will also continue to serve as a non-independent member of the Board of Directors.
The Company has appointed Carlos De Jesus as Group President, North America, effective November 3, 2025. Mr. De Jesus has spent more than 25 years in the global consumer products industry, with a proven track record of driving growth for billion-dollar brands and leading large-scale turnarounds across global markets.
The Company also announced that it will appoint Jonathan Halvorson to a newly created role of Chief Digital and Marketing Officer, effective November 17, 2025. The role of Chief Growth Officer will be eliminated, and Charmaine England will leave the Company following a transition period.
No Earnings Webcast
In a separate release issued today, Kenvue announced it has entered into a definitive merger agreement under which Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction.
As a result, Kenvue will no longer host its previously planned quarterly conference call with investors. The Company has posted prepared remarks regarding its third quarter 2025 earnings results on its website at investors.kenvue.com.
Segment Results
Self Care
Net sales decreased 3.8% vs the prior year period. Organic sales declined 5.3%, driven by a 5.0% volume decrease and unfavorable value realization of 0.3%.
$520 million vs $557 million in the prior year period.
Skin Health and Beauty
Net sales decreased 3.2% vs the prior year period. Organic sales declined 3.5%, driven by a 2.2% volume decrease and unfavorable value realization of 1.3%.
$137 million vs $191 million in the prior year period.
Essential Health
Net sales decreased 3.3% vs the prior year period. Organic sales declined 4.2%, driven by a 4.3% volume decrease partially offset by favorable value realization of 0.1%.
$307 million vs $291 million in the prior year period.
Financial Statements
Condensed Consolidated Statements of Operations (Unaudited; Dollars in Millions)
Fiscal Three Months Ended September 28, 2025 vs September 29, 2024:
$3,764 vs $3,899
$1,538 vs $1,617
$2,226 vs $2,282
Selling, general, and administrative expenses: $1,512 vs $1,590
$84 vs $31
$629 vs $654
Interest expense, net: $93 vs $96
$526 vs $577
$128 vs $194
$398 vs $383
$0.21 vs $0.20
$2,305 (margin 61.2%)
$811 (margin 21.5%)
$538 (margin 14.3%)
$0.28
Geographic Net Sales (Q3 2025 vs Q3 2024):
$1,765 vs $1,844
Europe, Middle East, and Africa: $959 vs $913
$672 vs $793
$368 vs $349
$1.1 billion
$9.0 billion
$7.8 billion
Kenvue Inc. press release, November 3, 2025