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Mar 31, 2023
Honest Co Q1 2023 Earnings Report
Reported a 21% increase in revenue and launched a Transformation Initiative to enhance profitability and enable future growth.
Key Takeaways
The Honest Company reported a strong first quarter with a 21% increase in revenue driven by growth in both digital and retail channels. The company launched a Transformation Initiative aimed at improving the cost structure and driving long-term value creation. They are raising the full year revenue outlook.
Revenue increased by 21% compared to the first quarter of 2022, reaching $83 million.
Digital and retail channels both experienced growth of over 20% during the quarter.
The company launched a Transformation Initiative focused on brand maximization, margin enhancement, and operating discipline.
Full year 2023 revenue outlook is increased to be up low-single digits versus revenue reported for the full year 2022.
Honest Co
Honest Co
Forward Guidance
The Company is increasing its full year 2023 revenue outlook to be up low-single digits versus revenue reported for the full year 2022. Adjusted EBITDA is expected to be in the range of negative $25 million to negative $30 million.
Positive Outlook
- Continued positive tracked channel consumption
- Benefit of additional price increases in 2023
Challenges Ahead
- Transformation Initiative impact of exiting low-margin businesses, expected to begin in the second quarter
- Comparing against prior year pipeline shipments that supported significant retail distribution growth in the second half of 2022