Honest Company Reports Mixed Q2 Earnings

Honest Company Inc HNST reported second-quarter FY22 sales growth of 5.3% year-on-year to $78.49 million, beating the analyst consensus estimate of $76.29 million.
Diapers and Wipes revenue increased 9% Y/Y to $51.9 million, and Skin & Personal Care fell 2% to $23.3 million.
Digital revenue increased 9% Y/Y to $37.8 million, and Retail revenue grew 2% to $40.6 million.
The gross margin for the quarter contracted by 600 basis points to 30%.
The operating loss for the quarter was $(10.7) million versus a loss of $(19.5) million last year.
The company held $40.3 million in cash and equivalents as of June 30, 2022.
EPS loss of $(0.11) missed the analyst consensus of $(0.08).
Outlook: HNST's FY22 revenue outlook remains unchanged and expects to be flat year on year.
It expects an adjusted EBITDA loss of $(5) million - $(10) million.
Price Action: HNST shares traded higher by 1.93% at $3.91 on the last check Friday.

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