Jessica Alba's Honest Beauty raised $412.8m in its first initial public offering (IPO) last year
The Honest Company saw revenues slump by 15% to US$69m in its first quarter 2022 results.
The consumer goods company, which was founded by actress Jessica Alba, said the decrease in revenue reflected the boost in sales it saw in 2021, related to sanitising and disinfecting products.
Other factors included a more normalised level of trade promotion relative to the first quarter of 2021.
“In the face of significant macro headwinds, I’m pleased we are able to maintain our financial outlook for the year,” said Chief Executive Officer Nick Vlahos.
“Consistent with the expectations we communicated on our last earnings call, the first quarter of 2022 experienced challenging comparisons year-over-year as well as softness in the digital space as many consumers returned to in-store shopping in our product categories.”
Revenue from its skin and personal care category, which represented 31% of the total first quarter revenue, also decreased 19% during the period.
Beauty product sales for its online offering decreased due to consumers shifting to the retail channel, as well as supply chain constraints leading to products becoming out of stock.
“With the first quarter behind us, Honest expects to return to growth over the next three quarters as we introduce new innovation, expand with new strategic retail partners and improve the digital experience on Honest.com,” added Vlahos.
It comes after Honest Beauty raised a $412.8m in its first initial public offering (IPO) listing, according to Reuters.
The company sold 25.8 million shares at $16 a piece, the mid to top range of its guideline pricing, which was estimated to be between $14 and $17 before registering last month.
At the time, the LA-based business was valued at $1.44bn for its IPO.