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Honest Company Shares Decline 28% After Outlook Disappoints

Published 03/25/2022, 11:08 AM
Updated 03/25/2022, 11:09 AM

By Sam Boughedda

Investing.com -- Honest Company Inc (NASDAQ:HNST) shares plunged 28% Friday on the back of the company's quarterly report, which saw it miss earnings and revenue expectations.

The consumer goods company reported a loss per share of $0.10 on revenue of $80.38 million. Analysts polled by Investing.com expected a loss per share of $0.07 on revenue of $84.65 million. Revenue rose 3% year-over-year.

While the company's diapers and wipes segment and skin and personal care segment saw a rise in revenue, 16%, and 26%, respectively, its household and wellness segment declined $9.7 million, or 68%, in the fourth quarter. The company put the decline down to reduced COVID-19 related consumer demand for sanitizing and disinfecting products and face masks.

In a further blow to shareholders, the company sees 2022 revenue as being approximately flat compared to 2021, with first-quarter revenue anticipated to decline about 15%.

Honest Company CEO Nick Vlahos said they "expect inflation and supply chain headwinds to continue to challenge the industry."

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