Jessica Alba-backed Honest Co. posts bigger-than-expected second-quarter loss as revenue tops estimates – Reuters

Honest Co. HNST,
+11.70%,
The Jessica Alba-backed company that makes clean baby, beauty, personal care and household products posted a bigger-than-expected second-quarter loss on Friday, though revenue beat estimates. The Los Angeles, Calif.-based company posted a loss of $10.012 million, or 11 cents per share, for the quarter, following a loss of $20.034 million, or 17 cents per share, in the period. of the previous year. Revenue reached $78.493 million from $74.576 million a year ago. The FactSet consensus called for a loss of 9 cents per share and revenue of $75.7 million. Revenue growth was driven by sales of diapers and wipes, which increased by 9%. “We maintain our outlook for revenue growth in the second half,” CEO Nick Vlahos said in a statement. “Given the cost pressures that continue to impact the industry and Honest, we have plans in place to mitigate the impact of inflation, including pricing, accretive innovation on the margin and cost savings, which we believe will drive long-term gross margin improvement.” The company expects full-year revenue to be flat compared to 2021. The FactSet consensus is for revenue of $317.3 million, down from $318.6 in 2021. The shares fell 1% premarket, but were down 52.5% in the year to date, while the S&P 500 SPX,
+0.40%
fell 12%.