Kenvue misses quarterly estimates as inflation, tariffs squeeze margins

Kenvue misses quarterly estimates as inflation, tariffs squeeze margins

Thu, August 6, 2026 at 2:47 PM GMT+3 1 min read

• KVUE +0.26%
• KMB +0.94%

Aug 6 (Reuters) - Kenvue 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, ​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)