Kenvue Inc. (NYSE:KVUE) saw its stock decline by 5.3% after CEO Thibaut Mongon shared a cautious outlook during the dbAccess Global Consumer Conference, citing underwhelming seasonal demand and retail de-stocking as key concerns.
Mongon noted that the company’s allergy and sun care products have seen a weaker-than-expected performance so far this year, largely due to an extended winter that delayed the onset of spring into the second quarter. This delay has impacted consumer buying behavior and disrupted typical seasonal sales patterns.
Further compounding the issue, Mongon highlighted a pullback from U.S. retailers in response to ongoing tariff uncertainty. Retailers have begun reducing inventory levels, which has caused a divergence between product shipments and actual consumer consumption – a dynamic that wasn’t evident in the first quarter.
In addition to these seasonal and logistical challenges, the CEO acknowledged broader consumer headwinds across multiple regions. While the specifics vary by market, overall economic pressures are making shoppers more cautious, further weighing on sales performance.
The market reacted negatively to the remarks, with investors concerned about both short-term sales softness and the potential for prolonged impacts from retailer inventory adjustments and shifting consumer sentiment.
Kenvue, a major player in the consumer health space, now faces scrutiny as it navigates a tough retail landscape and delayed seasonal trends. Analysts and shareholders alike will be watching closely for signs of recovery or further pressure in the months ahead.