The Honest Company ( NASDAQ: HNST ) was one of the few stocks not joining a powerful rally on Thursday.
The company founded by Jessica Alba posted a larger than expected loss, $0.13 as opposed to a $0.08 expectation, despite a narrow revenue beat. Digital revenue decreased 14% as the company said “key digital customer’s inventory reduction” impacted results while strong growth in household product sales were offset by skincare declines.
Moving forward, a full-year sales expectation in the range of $310M to $315M fell short of the analyst consensus of $319.37M. Adjusted EBITDA losses are expected to persist as well, with management slating a loss of $10M to $20M expected for the full year.
Shares of the Los Angeles-based consumer staples company crashed 8.31% lower into mid-day trading on Thursday.
Nonetheless, CEO Nick Vlahos remained confident on the longer-term trajectory for the company.
“Despite persistent cost inflation, economic pressure on the consumer and tighter inventory management by retailers, strong consumption of Honest products within our categories speaks to consumers’ desire to purchase clean and natural products, which gives us confidence in our growth plans as we enter 2023,” he concluded.
Read more on the details of the quarter .
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Honest Company stock slides on larger than expected loss