Business
The Honest Company Reports Second Quarter 2023 Results
Second Quarter Revenue Increased 8% versus Prior YearRaises Full Year Revenue and Adjusted EBITDA OutlookOperating Cash Flow Improvement Driven by Working
About this update from The Honest Company, Inc.
[{"type":"text","content":"Second Quarter Revenue Increased 8% versus Prior YearRaises Full Year Revenue and Adjusted EBITDA OutlookOperating Cash Flow Improvement Driven by Working Capital Discipline LOS ANGELES, Aug. 08, 2023 (GLOBE NEWSWIRE) -- The Honest Company (NASDAQ: HNST), a digitally-native consumer products company dedicated to creating clean- and sustainably-designed products spanning baby care, beauty, personal care, wellness and household care, today reported financial results for the three and six months ended June 30, 2023. “The power of the Honest Brand is reflected in our continued revenue growth in the second quarter, supported by strong consumption trends, underscoring the deep trust and love that our Honest community of shoppers have for our clean and sustainably-developed baby, beauty, wellness, and household products. Underpinning our second quarter performance was our Transformation Initiative, which drove positive operating cash flow in the quarter as a result of disciplined inventory management, marketing efficiencies and a tight focus on our cost structure,” said Chief Executive Officer, Carla Vernón. “We remain committed to expanding margins and driving shareholder value as we continue to realize additional benefits from our Transformation Initiative in the back half of the year. These improvements will establish the foundation upon which we will expand the Honest brand to become a larger, more vibrant, and more widely available brand than it is today.” Second Quarter Results(All comparisons are versus the second quarter of 2022) 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 increased 8% to $85 million driven by strong retail consumption, growth in the Digital channel, new revenue from baby clothing, and the benefit of price increases. Revenue by Product Category For the three months ended June 30, 2023 2022 % change(Unaudited, in thousands, except percentages) Diapers and Wipes $55,256 $51,901 6%Skin and Personal Care 22,735 23,275 (2)Household and Wellness 6,553 3,317 98 Total Revenue $84,544 $78,493 8% _______________________ Diapers and Wipes: Revenue from Diapers and Wipes (65% of total second quarter 2023 revenue) increased 6% due to retail consumption gains across diapers and wipes, supported by new distribu...