By Connor Hart

Kenvue is scheduled to report second-quarter results before the market opens Thursday. Here is what you need to know.

EARNINGS: The Johnson & Johnson spinoff, which makes Tylenol and Benadryl, is expected to post a profit of $482.3 million, or 25 cents a share, according to analysts surveyed by FactSet. That compares with a profit of $58 million, or 3 cents a share, in the same quarter a year earlier.

ADJUSTED EPS: Stripping out one-time items, Wall Street projects the drug maker to notch adjusted earnings of 28 cents a share.

SALES: Quarterly sales are forecast to fall to $3.85 billion in the recent quarter, from $4 billion a year ago.

Kenvue's stock has slipped 6.4% over the past three months and was recently trading at $21.63.

WHAT TO WATCH

--Kenvue said last month that it has been considering simplifying its portfolio due to a recent sales slump. Investors will be looking for any insights into the company's continuing strategic review, such as what potential alternatives the company has been weighing.

--The review came after Kenvue said in June that consumers have reigned in spending, and that retailers are increasingly destocking inventories, amid tariff-related macroeconomic pressures. The company said it would revise its full-year outlook as it reported its full second-quarter results. Investors will be looking to see how the recent sales slump will affect the company's full-year results.

--Former Chief Executive Thibaut Mongon stepped down from his role at the same time the company disclosed its strategic review. Kenvue named director Kirk Perry as its interim CEO, though investors will be looking for updates regarding the company's search for a new top executive.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

August 06, 2025 14:48 ET (18:48 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.