Business
The Honest Company Reports First Quarter 2022 Results In Line With Outlook
Maintains Full Year 2022 OutlookContinues to Forecast Growth for the Remainder of the Fiscal YearPlans for Pricing Execution, Innovation, and New Retail
About this update from The Honest Company, Inc.
[{"type":"text","content":"Maintains Full Year 2022 OutlookContinues to Forecast Growth for the Remainder of the Fiscal YearPlans for Pricing Execution, Innovation, and New Retail Distribution Remain on Track LOS ANGELES, May 13, 2022 (GLOBE NEWSWIRE) -- 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 months ended March 31, 2022. “In the face of significant macro headwinds, I’m pleased we are able to maintain our financial outlook for the year. Consistent with the expectations we communicated on our last earnings call, the first quarter of 2022 experienced challenging comparisons year-over-year as well as softness in the digital space as many consumers returned to in-store shopping in our product categories. With the first quarter behind us, Honest expects to return to growth over the next three quarters as we introduce new innovation, expand with new strategic retail partners and improve the digital experience on Honest.com,” said Chief Executive Officer Nick Vlahos. “While inflation and supply chain pressures continue to challenge Honest and the industry, we remain deeply focused on what we can control: driving innovation, maintaining cost discipline, investing in digital capabilities, expanding our distribution footprint and executing our pricing strategies to position Honest for long-term growth. In addition, our capital position allows us to fund growth investments in our digital platform and product innovation without having to access the external markets in a rising interest rate environment.” First Quarter Results This press release includes non-GAAP financial measures. See “Use of Non-GAAP Financial Measures” at the end of this press release for more information. Revenue decreased 15% to $69 million for the first quarter of 2022 compared to the first quarter of 2021. The decrease in revenue for the first quarter of 2022 compared to the first quarter of 2021 reflects increased revenue in 2021 relating to a liquidation of legacy beauty inventory ahead of last year’s Beauty Restage, as well as elevated sales in the year-ago period related to sanitizing and disinfecting products. Other factors include a consumer shift from the Digital channel to the Retail channel in our core product categories, supply chain constraints leading ...