Kenvue (NYSE:KVUE) today announced its financial results for the first quarter ended March 30, 2025, reporting a decrease in net sales driven by foreign currency headwinds and a slight organic sales decline.
The consumer health company also updated its full-year 2025 outlook, factoring in current foreign exchange rates and the estimated impact of recently implemented tariffs.
For the first quarter of 2025, Kenvue reported net sales of $3.74 billion, a 3.9% decrease compared to the prior year period.
This was primarily attributed to a 2.7% headwind from foreign currency translation and a 1.2% decline in organic sales.
Despite the top-line decrease, the company saw an improvement in its reported gross profit margin, which rose to 58% from 57.6% in the prior year period.
While the company's operating income margin improved to 14.9% from 14.1% in the prior year, the adjusted operating income margin, however, was 19.8%, down from 22% in the same period last year.
During the quarter, diluted earnings per share increased to $0.17 compared to $0.15 in the prior year period.
On an adjusted basis, diluted earnings per share came in at $0.24, down from $0.28 in the first quarter of 2024.
Meanwhile, Kenvue also highlighted a significant milestone achieved in April with the successful completion of its Transition Services Agreement (TSA) exits, a key step in its separation process.
Looking ahead, Kenvue updated its outlook for the full year 2025.
The company now expects net sales to increase by 1% to 3% year-over-year.
This includes an unchanged organic sales growth expectation of 2% to 4%, but now anticipates a roughly 1% headwind from foreign currency translation.
The company also forecasts a year-over-year decline in its adjusted operating income margin, primarily reflecting the estimated impact of higher costs due to recently implemented tariffs.