Kenvue, formed after Johnson & Johnson's spin-off of consumer brands, initially saw positive investor sentiment with a 22% increase in shares at debut. After 15 months, activist investors pushed for changes due to slow growth. CEO Thibaut Mongon resigned amid poor earnings predictions, specifically a 4% decline in anticipated net sales. In efforts to enhance profitability, Kenvue is reviewing its brand portfolio and operational strategies. The stock price dropped significantly compared to its peak, contrasting with the wider rise of the S&P 500 index during the same period.
"Kenvue has world-class brands in attractive categories and a strong global platform. The actions announced today are to ensure we have the right talent, brand portfolio and operational foundation to fully capitalize on those strengths, accelerate profitable growth and best position the Company for future success."
"In its most recent quarter, Kenvue expects net sales to fall 4%, continuing a downward trend. As a result of that weak performance, shares fell from their all-time high of about $27 in 2023 to around $21.25 today."
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