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Jun 30, 2021
Honest Co Q2 2021 Earnings Report
The Honest Company reported a revenue increase of 3% year-over-year, driven by growth in Skin and Personal Care, offset by declines in Diapers and Wipes and Household and Wellness, with gross margin decreasing slightly due to normalized trade spend and higher input costs.
Key Takeaways
The Honest Company reported a 3% increase in revenue for Q2 2021 compared to Q2 2020. Skin and Personal Care revenue increased by 16%, while Diapers and Wipes declined by 2%, and Household and Wellness declined by 6%. The company's gross margin was 36%, a decrease of 50 basis points year-over-year. Net loss for the quarter was $20.0 million, and adjusted EBITDA was a loss of $0.8 million.
Revenue grew 3% year-over-year, with a 9% increase excluding the impact of COVID-19 stock-up in the prior year.
Skin and Personal Care revenue increased by 16% year-over-year.
Gross margin was 36%, a decrease of 50 basis points from the prior year.
Net loss was $20.0 million, including one-time IPO related costs and other transaction-related expenses.
Honest Co
Honest Co
Honest Co Revenue by Geographic Location
Revenue by Geographic Location
Digital Revenue
CapyFin.com Forward Guidance
This press release and earnings call referencing this press release contain forward-looking statements about us and our industry that involve substantial risks and uncertainties.
Positive Outlook
- our expectations regarding our revenue and adjusted EBITDA and other operating results, in particular with respect to our revenue outlook for the remainder of 2021
- our strategic initiatives and priorities, including the timing and cadence of marketing and product innovation
- our ability to implement our strategy to deliver sustained long-term growth and increased value for our stakeholders
- our ability to effectively manage our growth
- our ability to acquire new consumers and successfully retain existing consumers
Challenges Ahead
- our ability to offset commodity prices, input cost and transportation cost inflation with productivity or pricing improvements
- anticipated trends, growth rates and challenges in our business and in the markets in which we operate
- the effect of COVID-19 or other public health crises on our business and the global economy, including the shift from our Digital channel to our Retail channel as consumers get vaccinated and return to in-store shopping
- our continued revenue growth through omnichannel strategy and ability to capture growth in whitespace opportunities in our Retail channel
- expectations regarding consumer demand and the timing and amount of orders from key customers