Third Quarter Highlights:
- Revenue grew 6% from the third quarter of 2020 led by Diapers and Wipes and Skin and Personal Care, which collectively grew 20% compared to the third quarter of 2020, partially offset by a decline in Household and Wellness.
- Gross profit of $29.8 million and gross margin of 36% reflecting strong demand for our product offerings as well as efficiencies from our costovation strategies which mitigated the negative impact of cost inflation.
- Expanded retail distribution to over 40,000 retail locations in the third quarter of 2021, an increase of 10% as compared to the third quarter of 2020.
- Introduced consumer-centric new marketing including our Lavender Nighttime campaign and support for our Beauty Restage that highlighted the breadth of our Skin & Personal Care line and the sustainability improvements in our Beauty portfolio.
- Increased household penetration to 3.5%, a 10% increase as compared to the third quarter of 2020.
Third quarter financials showcase a significant shift from digital to in-store retail for The Honest Company. As more people return to brick-and-mortar shopping, the brand has seen a reversal of online trends, which has now returned back to physical experiences. Their most-recent quarter showcased 53% of the brand’s total revenue from their store channels. Compared to Q3 of 2020, The Honest Company’s retail channel (in-store) revenue increased 28%, digital channel revenue decreased 11%.
“The progress and underlying strength of our business reflects the continued success of our strategic initiatives. This past quarter’s results reflect solid execution by our team, delivering growth, increasing market share, accelerating household penetration and adding incremental omnichannel distribution. As our entire industry has faced a dynamic operating environment with significant inflationary pressure and supply chain challenges, our solid revenue and gross margin performance continues to show the strength of our business. As we look to the future, we remain confident in our strategic plan and are focused on executing with excellence to deliver long-term shareholder value and further solidify Honest’s position as the next generation, modern CPG company,” said Nick Vlahos, Chief Executive Officer of The Honest Company.