Kenvue, the consumer health company, has reported a bumper start to its 2026 financial year following a strong first quarter for its Skin Health and Beauty Division.
Net sales increased 4.5% to US$3.9bn, compared with $3.7bn in the same quarter last year, and reflected organic sales growth of 0.7% and a foreign currency benefit of 3.8%.
The Johnson & Johnson (J&J) spinoff consumer health company also saw gross profits jump to $2.3bn, supported by a standout quarter for beauty sales.
Skin Health and Beauty net sales increased 8.4% to $1bn, compared with Q1 2025, with solid organic sales growth in the EMEA, Latin America and Asia Pacific.
This was fuelled by innovations and brand activations across regions, including a “solid sun season” in Latin America, bolstered by sales of Neutrogena’s Sun range.
Kenvue also benefited from the release of hair care brand OGX’s new Pro Growth collection in North America and the EMEA.
“Our year is off to an encouraging start, as our continued efforts to strengthen the business and sharpen execution resulted in delivering net and organic sales growth for the second consecutive quarter, along with meaningful year-over-year improvement in gross margin, operating margin and EPS,” said Kenvue CEO Kirk Perry, whose annual salary was recently unveiled by Cosmetics Business.
The Q1 2026 trading update follows Kenvue's announcement of its acquisition by Kimberly-Clark in a $48.7bn deal last year.
The tie-up will see Kenvue’s health and beauty brands, such as Neutrogena, Aveeno, OGX and Listerine, sit under the same umbrella as Kimberly-Clark’s personal care brands.
Due to the pending transaction with Kimberly-Clark, Kenvue has not provided forward-looking guidance for the year in this quarterly update.
Kenvue also kicked off a strategic review of its business in July 2025 amid falling sales and job cuts.
The initiative aims to optimise its operating model, transform its supply chain, reduce complexity and drive operational efficiencies, while strengthening core capabilities.
Kenvue provided an update on the strategic overhaul’s progress, stating that the initiative is expected to result in pre-tax restructuring expenses and other charges totalling approximately $250m for its fiscal year 2026.
The consumer health company is also doubling down its focus on hair care ranges through new scalp-focused formulas.
New product line launches from both OGX and Neutrogena will focus on scalp health, fuelled by skin care-first formulations harnessing the power of ingredients like peptides.
Perry added: “We remain confident in our ability to navigate ongoing macro uncertainty, as we accelerate our organisation and business transformation through our new strategic plans and work toward completing our value-creating combination with Kimberly-Clark in the second half of this year.”
Related content:
- Unveiled: Kenvue CEO Kirk Perry’s annual salary
- Kenvue sales slip in 2025 despite strong final quarter
- Exclusive: Kenvue prioritise scalp science as hair portfolio enters new era
- Neutrogena maker Kenvue to be sold to Kimberly-Clark in $48.7 billion deal
- L’Oréal sales surge 7.6% in Q1 driven by ‘step up’ in innovation
- Hermès shares sink as Q1 results uncover impact of Iran war and tourism drop
- Douglas Group Q1 sales grow 1.7% in ‘challenging’ market
- Coty sales sink 6% as prestige and consumer beauty lag in Q1
- Estée Lauder Companies’ Q1 sales beat estimates as turnaround takes hold in ‘pivotal year’
- e.l.f. Beauty sales rise in Q1 amid Rhode expansion plans