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Kenvue ( KVUE ) cuts 2025 sales forecast

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Says strategic review continues to advance

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Analysts see Kenvue ( KVUE ) as potential acquisition target

(Recasts paragraph 1, adds details from conference call in

paragraphs 6-7, adds graphic)

By Sneha S K

Aug 7 (Reuters) - Kenvue ( KVUE ) cut its annual sales

forecast on Thursday, as the consumer health company undergoes a

strategic review aiming to boost brand performance amid a

cautious spending environment.

The company, spun off from Johnson & Johnson ( JNJ ) in

2023, has been working to shore up profitability, especially in

its struggling skin health and beauty unit that houses brands

such as Neutrogena and Aveeno.

Wall Street analysts view the Band-Aid maker as an

acquisition target after it came under pressure from investors,

who have criticized the lackluster performance in those

segments.

Kenvue ( KVUE ) ousted its CEO Thibaut Mongon in July, which some

investors expect would be the groundwork for an eventual sale of

the entire company or pieces of it. The company, which named

Kirk Perry as its interim chief, said on Thursday its previously

announced strategic review continues to advance and the board is

considering a broad range of potential alternatives.

It had also appointed former Kellanova executive Amit

Banati as its finance chief in May.

Kenvue's ( KVUE ) executives on a post-earnings call emphasized on

leveraging their prior experience in consumer companies to

improve its performance to deliver reliable and consistent

results.

"I clearly see the opportunity where I can step in and make

a difference right away, drawing on my past experiences," Perry

said.

The Tylenol maker expects its 2025 net sales to be down

low-single-digits, compared with its prior expectation of a 1%

to 3% increase. It said the cautious sentiment of consumers has

been factored into the forecast.

"Kenvue ( KVUE ) is clearly a 'show me' story and must demonstrate

sequential improvement/consistent delivery in order for shares

to rate higher," said RBC Capital Markets analyst Nik Modi.

The company forecast annual adjusted profit to be in the

range of $1.00 to $1.05 per share, below analysts' estimate of

$1.13 per share, according to data compiled by LSEG.

It posted adjusted profit per share of 29 cents during the

second quarter, compared with the estimate of 28 cents.