Honest Company Stock Gains Post Q1 Results; Maintains FY22 Outlook

• Honest Company Inc (NASDAQ: HNST) reported a first-quarter FY21 sales decline of 15% year-on-year to $68.72 million, missing the consensus of $68.80 million.
• Diapers and Wipes revenue declined 13% Y/Y to $43.3 million, and Skin & Personal Care fell 19% to $21.3 million.
• Digital revenue decreased 19% Y/Y to $34.3 million, and Retail revenue fell 11% to $34.5 million.
• The gross margin for the quarter contracted by 500 basis points to 30%.
• The operating loss for the quarter was $(14.5) million versus a loss of $(4.1) million last year.
• The company held $78 million in cash and equivalents as of March 31, 2022.
• EPS loss of $(0.16) missed the analyst consensus of $(0.15).
• 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 14% at $3.34 on the last check Friday.