2023-03-16 10:12:42 ET
Honest Company ( NASDAQ: HNST ) stock slid sharply on Thursday after posting a far wider than expected loss and sharp margin contraction in Q4.
The personal and household products company founded by Jessica Alba posted a $0.14 loss per share, outpacing expectations by $0.10. Revenue of $81.86M for the quarter, meanwhile, came in narrowly above estimates. Gross margins contracted 350 basis points year over year
An adjusted EBITDA loss of $1.55M for the quarter also surprised in contrast to the consensus estimate of a $1.96M profit.
“We are not satisfied with the revenue and margin results announced today. We do not believe they reflect the strength and potential of the Honest brand,” newly-minted CEO Carla Vernón commented. “In 2023, we will be relentlessly focused on taking actions and defining a strategy to set us up to be a stronger, more profitable Company in 2024 and beyond.”
Revenue and Adjusted EBITDA in 2023 are expected to be in-line with 2022 levels.
Shares of The Honest Company plunged 20.8% in the early hours of Thursday’s trading session.
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Honest Company stock slumps over 20% on EBITDA loss