MW Benadryl, Band-Aid parent says tariffs and late allergy season are hurting its business

By Steve Gelsi

Kenvue CEO Thibaut Mongon says consumers are under pressure and worried about the economy

Kenvue Inc..'s stock was headed for its worst day in nearly two years on Tuesday, as the maker of Band-Aids, Benadryl and Tylenol said tariffs, persistent inflation and weaker demand for allergy medicine, due to a late start to the season, are hurting sales in the current quarter.

"The consumer continues to be under pressure, regardless of the geography," Kenvue Chief Executive Thibaut Mongon said Tuesday at the Deutsche Bank Consumer Conference, according to a transcript. "Consumers are worried."

The stock (KVUE) dropped 5.9% in afternoon trading, which put it on track for its biggest one-day decline since the record 6.2% selloff on Sept. 7, 2023. Kenvue was spun off from Johnson & Johnson $(JNJ)$ in May 2023.

Pricing is also creating a "short-term" headwind, due to the fact that the company's products aren't at price points where management or retail customers want them to be, he said.

"You want to be at the $4.99, $9.99, $14.99 price point to really hit the right ratio for consumers and drive volume," Mongon said. "So that creates a short-term headwind on the business."

The company has also faced "de-stocking" in the U.S. due to tariffs. This means that retailers and other suppliers are being "much more thoughtful," and are cutting back on orders across the company's brand portfolio, due to tariffs and other uncertainties.

Kenvue's product shipments "are definitely trailing consumption" in the second quarter- something that did not happen in the first quarter, he said.

"Clearly, the tariff environment created a lot of uncertainty for [distributors] and we have seen them taking immediate actions," Mongon said.

The company's allergy product sales have also been impacted by the cooler-than-usual winter and spring.

"On allergy...we saw a later start to the season, and so far, it's below last year and below [Kenvue's] expectations," he said.

To be sure, Kenvue has been building up its market share with self-care products such as Listerine, while its Nicorette nicotine gum has more than 50% of the market in Europe, the Middle East and Africa.

After spinning off from Johnson & Johnson in 2023, Kenvue's stock had closed at a record high of $27.50 on May 15 before pulling back. In the past 12 months, it has traded on an intraday basis between $17.67 a share and $25.17 a share, according to Dow Jones Market Data.

Also read: Starboard reportedly takes big stake in Tylenol maker Kenvue

-Steve Gelsi

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June 03, 2025 15:48 ET (19:48 GMT)

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