Consumer goods company The Honest Company (HNST) reported better-than-expected sales in the third quarter and has been increasing its focus on sustainable packaging. But is that enough to help to company thrive amid ongoing supply chain issues? Let’s find out.The Los Angeles-based Honest Company, Inc. (HNST) is a Jessica Alba-backed sustainable products-focused consumer goods concern that made an impressive stock market debut on May 5, 2021. Its shares soared in price to hit their 52-week high of $23.88 on its first day of trading. Also, in July 2021, the company announced a new sustainable packaging initiative for Honest Beauty that features 100% recyclable cartons using 100% tree-free paper made from upcycled sugarcane by-products.
The stock surged in price on November 11 after the company beat third-quarter consensus sales estimate by 2.7%. However, it has lost 36.8% over the past six months to close yesterday’s trading session at $9.53.
HNST’s digital sales fell 11% year-over-year to $39.11 million in the third quarter, and its losses increased significantly. Furthermore, its near-term prospects look bleak because its business could continue to be impacted by ongoing supply chain issues.