Honest Co. brand body lotion
Gabby Jones/Bloomberg
Shares of Honest Co. nosedived 25% to a record low, after the Jessica Alba-faced consumer goods firm delivered disappointing second-quarter results Friday.
Honest Co. (ticker: HNST) said it lost $20.2 million, or 17 cents a share in the quarter, compared with a loss of a penny a share in the year-ago period. On an adjusted basis, which strips out nonrecurring items, it lost 23 cents a share. Revenue climbed 3% to $74.6 million. Analysts were looking for a per-share loss of 19 cents on revenue of $78.8 million.
Honest Co. stock slid about 25% to $10.52 in recent trading, its lowest intraday level since the company made its trading debut in May, according to Barron’s data. Honest priced its initial public offering at $16 a share.
Sales of skin and personal care products climbed 2% in the quarter, while those of household and wellness products slipped 6%. Revenue from diapers and wipes declined 2%, although Honest Co. noted that was largely because of consumers stocking up amid the pandemic-affected second quarter of 2020. Excluding an estimated $3.7 million in stock-up purchases in the year-ago quarter—mostly in diapers and wipes—overall company revenue growth was up 9%, it said.
It’s only the second earnings report for Honest Co. as a public company. It isn’t the only recent debut to struggle, although analysts are largely upbeat about the stock’s prospects.
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