Jessica Alba’s Honest Co. shares slide almost 10% premarket as earnings fall short of estimates

Honest Co. shares
slid 9.7% in premarket trade Friday, after the company founded by actress and entrepreneur Jessica Alba that sells environmentally clean baby and personal care products missed earnings estimates for the second quarter. The Los Angeles-based company posted a net loss of $20.2 million, or 17 cents a share, for the quarter, after a loss of $375,000, or 1 cent a share, in the year-earlier period. The company’s adjusted loss per share came to 23 cents, wider than the 19 cents FactSet consensus. Revenue rose to $74.6 million from $72.3 million, just below the $78.8 million FactSet consensus. Chief Executive Nick Vlahos said the company saw positive response to a new Clean Conscious Diaper with more than 17% retail consumption growth for its diapers, wipes and personal care products. Skin and personal care revenue rose 16% from the year-earlier quarter, while diapers and wipes fell 2%. Household and wellness revenue fell 6% as consumers became vaccinated, lowering demand for sanitization products. Shares have fallen 5.6% in the last three months, while the S&P 500
has gained 8.5%.

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