Core Viewpoint - Billionaire activist investor Jeff Smith remains optimistic about Kenvue (KVUE) despite a 28% year-to-date stock decline, primarily due to management changes he facilitated [1] Management Changes - Significant leadership transitions occurred, with former CEO Thibaut Mongon ousted in July and interim CEO Kirk Perry appointed, alongside Amit Banat as CFO in May [1][2] - Smith expressed satisfaction with the rapidity of these changes, indicating potential improvements in Kenvue's brands and business lines [2] Brand Controversy - Kenvue's stock struggles are linked to controversial claims from the Trump administration connecting Tylenol use during pregnancy to autism, leading to a 10% drop in shares following reports of upcoming findings from Health and Human Services Secretary Robert F. Kennedy Jr. [3] - Kenvue has actively urged regulators to dismiss citizen petitions for autism warning labels, with a federal judge previously dismissing similar lawsuits due to lack of scientific evidence [4] Financial Performance - During the Q2 earnings call, interim CEO Kirk Perry outlined a turnaround strategy while acknowledging operational challenges, with Kenvue reporting a 2.7% sales decline in the first half of the year and maintaining guidance for low single-digit revenue declines for 2025 [5] - Key issues identified include excessive complexity in product lines, insufficient consumer insight focus, and poor retail and e-commerce execution [6] Strategic Review - Perry noted that Kenvue has too many products across various markets without adequate strategic focus, prompting the board to initiate a comprehensive review of strategic alternatives, including potential brand portfolio reshaping [7] - Retail inventory destocking and weak seasonal product performance, along with underwhelming operations in China, have negatively impacted results, although easier comparisons are expected in Q4 [8]