The Honest Company’s revenue increased 21% to $83 million in the first quarter of 2023 driven by strong retail consumption, growth in the Digital channel, distribution gains achieved in 2022, new revenue from baby clothing and the benefit of price increases.

Revenue from Diapers and Wipes (64% of total first quarter 2023 revenue) increased 23% to $53 million due to retail consumption gains across diapers, wipes and baby personal care, supported by new distribution and increased assortment.

“The strength of the Honest brand is reflected in our first quarter revenue growth of 21% and tracked channel consumption growth of 30%. With well-balanced growth across digital and retail channels, both up over 20% in the quarter, we remain confident about our omnichannel approach of making Honest products available when and where they are most convenient for consumers,” says CEO Carla Vernón. “Given our focus on restoring the strength of our business model and driving long-term value creation, I’m excited to announce that we have launched our Transformation Initiative in the first quarter. This initiative is designed to improve our cost structure and enable growth. We expect this initiative to drive profitability and sustained shareholder value by focusing on three primary pillars – Brand Maximization, Margin Enhancement, and Operating Discipline.”