Loading...
•
Sep 30, 2022
Honest Co Q3 2022 Earnings Report
Honest Co achieved record quarterly revenue driven by retail expansion and innovation.
Key Takeaways
The Honest Company reported a 2% increase in revenue to $85 million for the third quarter of 2022. Growth was driven by Household and Wellness category, offset by a decrease in Skin and Personal Care. The company updates full year 2022 revenue outlook for key digital customer’s inventory adjustments; maintains full year Adjusted EBITDA outlook, reflecting positive Adjusted EBITDA in the fourth quarter.
Third quarter revenue growth was 2%, negatively impacted by a prior-year Skin and Personal Care rotational program.
Third quarter consumption of Honest products grew 6%.
Accelerated growth in Household and Wellness category by integrating Honest Baby Clothing® into our lifestyle platform
Gross margin of 30.3% reflected a 30 basis point improvement versus the second quarter of 2022
Honest Co
Honest Co
Forward Guidance
The company anticipates first half of 2023 revenue growth of 7% to 10% over the first half of 2022.
Positive Outlook
- Retail distribution expansion that occurred in the second half of 2022
- New round of price increases on select diapers, wipes, and personal care items effective in the middle of December 2022
Challenges Ahead
- Uncertainty in US consumer spending
- Continued tight inventory management by retailers
- Lapping significant distribution gains
- Lapping pipeline shipments
- Lapping revenue from integrating the Honest Baby Clothing business