2023-03-17 09:17:32 ET
The Honest Company ( NASDAQ: HNST ) was downgraded at Telsey Advisory Group after a bruising Q4 earnings report from the consumer good company. Analyst Dana Telsey and team are pessimistic on the visibility for HNST to see topline or margin improvements.
"While sales came in slightly better than expected, significant gross margin and operating expense deleverage led to the bottom line miss relative to expectations. Skin and personal care and the digital channel remain headwinds, as consumers shift back towards the retail channel and digital players reduce orders."
Telsey also noted that the FY23 outlook from Honest Company ( HNST ) for flat revenue and EBITDA year over year fell well short of expectations.
Who saw the troubles for Honest Company coming? Seeking Alpha Marketplace author Daniel Jones had a warning for investors on Honest Company in early February just in front of a 44% slide in share price.
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Honest Company loses another bull as Telsey runs to the sidelines after earnings misfire