Oct 22 (Reuters) - Hedge fund Starboard Value called

consumer products company Kenvue ( KVUE ) a bargain and said its

skin health and beauty segment's lackluster growth is the reason

for the stock's underperformance.

Starboard Chief Investment Officer Jeffrey Smith said there

is an opportunity to improve revenue growth and margins at the

segment which has the Neutrogena and Aveeno brands.

"They need to focus on skin health beauty," Smith said,

joking, "this sounds simple, right? Now they just have to do

it."

Kenvue ( KVUE ) has attributed the lackluster performance of its

skin-health brands primarily to missteps around the placement of

its products in stores.

Kenvue's ( KVUE ) skin health business, which also houses brands such

as Clean & Clear, was the worst performer its three segments in

the second quarter, recording a nearly 4% decline in sales to

$1.10 billion and missing Wall Street estimates.

A company spokesperson said Kenvue ( KVUE ) is aware of Starboard's

investment and will engage with the firm as well as with all

other shareholders.

"We continue to advance our three strategic priorities

of reaching more consumers, investing further behind our brands

and building a culture of performance and impact," the

spokesperson said.

The company said in August that it would increase marketing

spending and improve its brands' in-store presence, among other

measures, to boost sales.

Starboard has built a sizable stake in the consumer products

company that makes Band-Aid, Listerine, and Tylenol. Kenvue ( KVUE ) went

public last year and is worth roughly $44 billion.

Kenvue ( KVUE ), previously a part of Johnson & Johnson ( JNJ ), has

seen its stock price fall 18% since the company was listed

publicly in May 2023. It was little changed in Tuesday afternoon

trading at $22.90.

Smith was speaking at the 13D Monitor Active-Passive

Investor Summit.