KVUE · 10-Q · 2026Q2 · Full report

Operating Expense Trends

Kenvue Inc. · 2026-08-06 · Importance 43 · Surprise 32

Six-month selling, general, and administrative expenses decreased $51 million, or 1.7%, to approximately $2.990 billion, reducing SG&A as a percentage of sales by 210 basis points to 38.0%. Restructuring savings and a $46 million reduction in Separation-related costs more than offset unfavorable translation effects and Pending Transaction-related costs. Quarterly SG&A increased $33 million, or 2.2%, primarily because of higher brand-support expenses, unfavorable currency translation, and transaction costs, partly offset by restructuring savings and a $16 million reduction in Separation-related costs. Segment adjusted operating income increased 9.4% to $2.105 billion for six months, reflecting lower administrative and brand-support expenses alongside supply-chain benefits.

Key facts

• Selling, general, and administrative expenses for the fiscal six months ended June 28, 2026: $2,990 million, a decrease of $51 million, or 1.7%; SG&A as a percentage of Net sales decreased 210 basis points to 38.0% from 40.1% source
• Selling, general, and administrative expenses for the fiscal three months ended June 28, 2026: $1,537 million, an increase of $33 million, or 2.2%; SG&A as a percentage of Net sales decreased 30 basis points to 38.9% from 39.2% source
• Other expense, net was $11 million for the fiscal six months ended June 28, 2026 and $16 million for the fiscal six months ended June 29, 2025, driven by $12 million and $17 million of currency losses on transactions respectively source
• Other expense, net was $11 million for the fiscal three months ended June 28, 2026 and $10 million for the fiscal three months ended June 29, 2025, driven by $12 million and $11 million of currency losses on transactions respectively source
• Separation-related costs decreased $16 million in the fiscal three months ended June 28, 2026 and decreased $46 million in the fiscal six months ended June 28, 2026 source
• Other operating expense, net was $6 million for the fiscal three months ended June 28, 2026 and $5 million for the fiscal three months ended June 29, 2025 source
• Other operating expense, net was $17 million for the fiscal six months ended June 28, 2026 and $18 million for the fiscal six months ended June 29, 2025 source