The Honest Company experiences eighth consecutive quarter of growth
The Honest Company announced on Wednesday a 6 percent jump in third quarter revenue and its eighth consecutive quarter of year-over-year revenue growth.
For the three months ended September 30, 2021, revenues totalled $82.7 million at the consumer goods company led by diapers and wipes and skin and personal care categories, which collectively grew 20 percent compared to the third quarter of 2020.
Revenue was partially offset by a decline in household and wellness categories, where revenue decreased 71 percent as compared to the third quarter of 2020, driven by an overall reduction in consumer demand for sanitization and disinfecting products. For the third quarter, diaper and wipes represented 65 percent of revenue, skin and personal care represented 31 percent of revenue, while household and wellness represented 4 percent of revenue.
As more consumers have chosen to return to in-store shopping, retail channel revenue increased 28 percent to $43.5 million in the third quarter of 2021 as compared to the third quarter of 2020. The company, in fact, expanded retail distribution to over 40,000 retail locations in the third quarter of 2021, an increase of 10 percent as compared to the third quarter of 2020.
Likewise, digital channel revenue decreased 11 percent to $39.1 million in the third quarter of 2021, as compared to the third quarter of 2020 when digital channel revenue grew 43 percent as compared to the third quarter of 2019.
The Los Angeles-based company, which first launched in 2012, said net loss for the third quarter of 2021 was $5.1 million, compared to net loss of $2.0 million during the third quarter of 2020.
“The progress and underlying strength of our business reflects the continued success of our strategic initiatives. This past quarter’s results reflect solid execution by our team, delivering growth, increasing market share, accelerating household penetration and adding incremental omnichannel distribution,” said Nick Vlahos, chief executive officer of The Honest Company.
“As our entire industry has faced a dynamic operating environment with significant inflationary pressure and supply chain challenges, our solid revenue and gross margin performance continues to show the strength of our business. As we look to the future, we remain confident in our strategic plan and are focused on executing with excellence to deliver long-term shareholder value and further solidify Honest's position as the next generation, modern CPG company.”
In May, Honest was valued at $1.92 billion in its Nasdaq debut, after its shares opened 33 percent above their offer price.
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