Nov 7 (Reuters) -

Kenvue ( KVUE ) reported third-quarter sales slightly below

Wall Street expectations on Thursday, hurt by weak sales of its

skin health and beauty brands including Neutrogena, a trend that

has attracted criticism from activist hedge fund, Starboard

Value.

Kenvue ( KVUE ) said it now expects annual net sales to grow

closer to the lower end of its forecast of 1% to 3% growth.

The consumer products company has struggled with an

underperforming skin health and beauty segment, while its

self-care brands such as Tylenol and Benadryl have grown.

Shares have risen 4.5% so far this year and were trading

flat at $22.61 during premarket hours.

After Starboard built a sizable stake in Kenvue ( KVUE ), the

activist hedge fund said there was an opportunity to improve

revenue growth for the company's beauty and skin health

products, which were weighing on its stock.

Kenvue ( KVUE ) is focusing on improving sales through increased

marketing spend and in-store presence of its skincare products.

But sales in the segment fell 4.2% to $1.07 billion in

the third quarter ended Sept. 29, missing analysts' estimate of

$1.10 billion, according to data compiled by LSEG.

Total revenue fell slightly, to $3.90 billion, below

analysts' estimate of $3.93 billion, helped by strong sales of

its self-care products.

On an adjusted basis, the company reported a profit of 28

cents per share, compared with analysts' estimate of 27 cents

per share.

It reaffirmed its annual per share profit forecast of

between $1.10 and $1.20. Analysts were expecting a profit of

$1.14 per share.