Kenvue's Sales Miss Estimates Amidst Kimberly-Clark's $48.7 Billion Acquisition

Kenvue, the maker of Tylenol, reported third-quarter net sales of $3.76 billion, a 3.5% decrease that fell short of Wall Street estimates of $3.84 billion as compiled by LSEG. This announcement coincides with news of Kimberly-Clark's planned acquisition of Kenvue for approximately $48.7 billion. The sales decline impacted key segments, with the self-care division, encompassing Tylenol and Benadryl, experiencing a 3.8% decrease. Similarly, the skin health segment, featuring brands like Neutrogena and Aveeno, saw a 3.2% reduction in sales. Since its 2023 spinoff from Johnson & Johnson, Kenvue has navigated challenges, including increased scrutiny surrounding its Tylenol brand. Following the acquisition announcement, Kenvue's shares saw a premarket trading increase of approximately 20%.