As part of its broader restructuring efforts, Kenvue Inc. (KVUE) is considering the sale of some of its skin health and beauty brands. KVUE is currently rated a “Buy” in the portfolio, highlights Clif Droke, editor of Cabot Turnaround Letter.
Citing various sources, Reuters reported that Kenvue’s Clean & Clear, Maui Moisture, and Neostrata are among the brands up for consideration as sale candidates. Bebe, a German baby care brand, and Japanese brand Dr.Ci:Labo could also be included, according to Reuters.
Kenvue Inc. (KVUE)
It was also reported that Kenvue plans to retain its core brands, Neutrogena and Aveeno, while “focusing on improving profitability in weaker segments.”
The proposed move, which comes in the wake of a 5% decline in organic sales for the firm’s skin health and beauty unit in Q1, was prompted by activist investors like Starboard Value, Third Point, and Toms Capital. They’re pressing Kenvue to streamline its portfolio and boost returns.
The divestment process is being handled by Goldman Sachs, but no deal has been finalized yet.
Recommended Action: Buy KVUE.