Kenvue misses quarterly estimates as inflation, tariffs squeeze margins

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)

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