The Honest Company’s revenue increased 2% to $85 million for the third quarter of 2022 compared to the third quarter of 2021. Revenue growth in the quarter was negatively impacted by 8 percentage points due to a prior-year Skin and Personal Care rotational program with a key club retailer that did not repeat this year. Growth was driven by 115% revenue growth in Household and Wellness, 3% revenue growth in Diapers and Wipes, offset by a 13% revenue decrease in Skin and Personal Care.

Revenue from Diapers and Wipes (65% of total third quarter 2022 revenue) increased 3% in the third quarter of 2022 compared to the third quarter of 2021. Growth was seen across all key retail customers, driven by larger-size offerings, price increases, as well as initial shipments to support expansion into new distribution. Honest consumption outpaced category growth in Diapers and Wipes, increasing 6% vs. overall category growth of 3%. Wipes were particularly strong, with growth in tracked channels more than double the overall category, driven by alternate use of wipes beyond diapering.

“I’m delighted with our Honest team’s execution against our strategic priorities. In an uncertain macro environment, our brand and go-to-market strategies continue to resonate with the consumer. Our strong consumption and market share gains at retail have led to incremental distribution with both new and existing customers. We continue to make our products accessible to more consumers, while building brand awareness, household penetration and brand loyalty,” says CEO Nick Vlahos. “Despite persistent cost inflation, economic pressure on the consumer and tighter inventory management by retailers, strong consumption of Honest products within our categories speaks to consumers’ desire to purchase clean and natural products, which gives us confidence in our growth plans as we enter 2023.”