Band-Aid Maker Kenvue Cuts Workforce By 4%, Q1 Earnings Beat Street Expectations
Portfolio Pulse from Vandana Singh
Kenvue Inc (NYSE:KVUE), a consumer health company, reported Q1 sales of $3.89 billion, surpassing expectations of $3.79 billion. Sales grew by 1.1%, with organic growth at 1.9%. The company saw increases in Self Care and Essential Health segments but faced a decline in Skin Health and Beauty. Adjusted EPS was $0.28, beating the consensus of $0.26. Kenvue plans to cut its workforce by 4% aiming for $350 million in cost savings by 2026, expecting to incur $275 million in restructuring costs over the next two years. The company anticipates 1.0%-3.0% net sales growth and an adjusted EPS of $1.10-$1.20 for FY 2024. KVUE shares rose 4.95% to $20.03.
May 07, 2024 | 4:52 pm
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Kenvue Inc reported higher than expected Q1 sales and EPS, announced a 4% workforce reduction for cost savings, and provided positive FY 2024 guidance. Shares increased by 4.95%.
Kenvue's better-than-expected Q1 performance and positive future guidance, coupled with cost-saving measures, likely contributed to investor optimism, reflected in the stock's price increase. The workforce reduction, while a cost-saving measure, indicates a significant operational change that could have mixed impacts but is seen positively in the context of efficiency and future profitability.
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RELEVANCE 100