September 27, 2022

The Honest Company Reports Second Quarter 2022 Results

The Honest Company (NASDAQ: HNST), a digitally native, mission-driven brand focused on leading the clean lifestyle movement, today reported financial results for the three and six months ended June 30, 2022.

Highlights

  • Second quarter revenue growth of 5%, led by a 9% increase in diapers and wipes
  • Strategic initiatives remain on track for execution of innovation, new retail distribution and pricing
  • Maintains full year 2022 revenue outlook, reflecting mid-single digit growth for the remainder of the year
  • Updates full year gross margin outlook, which reflects sequential improvement in the second half of 2022
  • Updates full year Adjusted EBITDA(1) outlook, including positive Adjusted EBITDA expected in the fourth quarter

“I’m pleased we delivered mid-single digit revenue growth in the quarter despite an uncertain consumer environment. The Honest brand continues to resonate with today’s conscious consumer, as reflected in our strong consumption trends, healthy growth in our digital channel, and continued new distribution wins,” said Chief Executive Officer Nick Vlahos.

“We are maintaining our revenue growth outlook in the second half of the year. Given cost pressures that continue to impact the industry and Honest, we have put plans in place to mitigate the impact of inflation, including pricing, margin-accretive innovation, and cost savings, which we’re confident will drive long-term gross margin improvement. At the same time, we continue supporting our long-term growth plans by funding high-return initiatives that are expected to increase consumer demand, elevate our digital platform, and deliver a robust innovation pipeline for 2023 and beyond. Our 2022 outlook continues to expect sequential Adjusted EBITDA improvement over the back half of the year, and positive Adjusted EBITDA in the fourth quarter.”