By Kelly Cloonan

Shares of Kenvue fell after the drug maker's chief executive officer said consumers continue to pull back on spending and retailers increasingly destock inventories amid tariff-related macroeconomic pressures.

The stock fell 7.1% to $21.98 on Tuesday, on track for its largest percent decrease on record. Shares have risen 14% over the past 12 months.

CEO Thibaut Mongon said at a Tuesday conference the company is seeing consumers across its geographies pull back on spending as they face a challenging macroeconomic environment.

"I would say consumers are under pressure, consumers are worried," he said, adding sales in the current quarter are likely similar to the first quarter, which saw revenue down 3.9% to $3.74 billion.

Kenvue's U.S. retailers, meanwhile, are increasingly reducing their inventory across the company's portfolio amid tariff uncertainty, he said. Kenvue's shipments in the current quarter now trail consumption, he said.

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

Kenvue also continues to face some near-term headwinds as it pursues a new commercial strategy, with a drag on its first-quarter results expected to continue into the current quarter as the company adjusts its prices and destocks in China, he said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

June 03, 2025 14:20 ET (18:20 GMT)

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