Kenvue Considers Divesting Some Skin Health and Beauty Brands, Rebalancing Product Portfolio

Kenvue is considering selling several underperforming skin health and beauty brands, including Clean & Clear, Maui Moisture, Neostrata, Bebe and Dr.Ci:Labo, to streamline its product portfolio and focus on core assets.

Kenvue, which was separated from Johnson & Johnson in 2023, is working with Goldman Sachs to explore asset divestiture options, according to people familiar with the matter. Some small brands within Kenvue's skin health and beauty division are under review, with total annual revenue expected to exceed $500 million. The company plans to retain key brands such as Neutrogena and Aveeno. The skin health and beauty division, which consists of about a dozen brands, reported a 4.8% year-on-year decline in organic sales in the first quarter of 2025. The final sale plan has not yet been determined and nothing has been determined yet.

Kenvue is dealing with pressure to continue to improve performance and simplify operations under intense scrutiny from activist investors. The Target brand accounts for only a small portion of the company's $15.5 billion in annual revenue and has been a drag on growth. By divesting non-core assets, Kenvue aims to sharpen its focus on high-performing flagship brands and drive marketing investments more effectively.