Kenvue, the Johnson & Johnson spinoff that owns brands such as Tylenol and Benadryl, announced Monday that Chief Executive Officer Thibaut Mongon has stepped down.
Kenvue shares were up by more than 6% during pre-market on the back of the announcement.
Board director Kirk Perry has been named interim CEO while the company undergoes a strategic review aimed at simplifying its operations and strengthening performance after a challenging quarter.
The change at the top comes amid ongoing struggles for the consumer health company, which has been contending with softer consumer demand, inventory reductions by retailers, and pressures from tariffs in key international markets.
Mongon’s departure follows the appointment of a new chief financial officer in May, when Amit Banati replaced Paul Ruh.
In a statement, Kenvue Chair Larry Merlo said the board has full confidence in the interim leadership and the direction the company is taking.
“We are confident that the steps we are taking put Kenvue on the right path to deliver both near- and long-term value creation for shareholders,” said Chair Larry Merlo.
Second-quarter results point to continuing slowdown
Preliminary second-quarter results released by the company on Monday underscore the challenges it faces.
Kenvue said it expects sales to decline 4% for the quarter ended June 29, with adjusted earnings per share forecast between 28 cents and 29 cents.
The company plans to issue its full second-quarter report and revise its full-year guidance on August 7.
While the expected earnings per share are broadly in line with analyst expectations compiled by LSEG, the sales decline reflects broader macroeconomic pressures affecting the consumer health sector.
In June, Mongon said the company was adjusting its pricing strategy and grappling with destocking by retailers, particularly in China.
The headwinds are expected to weigh on results into the second half of the year.
Company weighs portfolio changes and brand divestitures
As part of its broader strategic review, Kenvue is evaluating options to simplify its product portfolio.
People familiar with the matter told Reuters in June that the company is exploring the sale of several smaller skin health and beauty brands, including Clean & Clear, Maui Moisture, Neostrata, Bebe, and Dr.Ci:Labo.
Kenvue intends to retain more prominent brands such as Neutrogena and Aveeno, which remain central to its consumer health strategy.
The board has formed a dedicated committee to oversee the review process and is being advised by Centerview Partners and McKinsey & Company.
Merlo said the company is considering a wide range of potential alternatives, not only in terms of product lines but also operational structure.
The strategic pivot reflects Kenvue’s effort to reestablish growth momentum following a slow start to the year.
While the company has maintained a stable of well-known consumer products, it now faces pressure to trim underperforming segments and refine its focus in an increasingly competitive environment.
The results of the review, as well as guidance for 2025, are expected to become clearer when the company delivers its full quarterly earnings in early August.
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