The Honest Company reported fourth quarter and full year 2022 financial results for the year ended December 31, 2022.

In the fourth quarter of 2022, revenue increased 2% to $81.9 million, driven by strong retail consumption, distribution gains and price increases, partially offset by a decline in the Digital business.

Revenue from Diapers and Wipes (61% of total fourth quarter 2022 revenue) increased 1% as the benefit of price increases and strong retail performance was mostly offset by a decline in the Digital channel.

For the full year 2022, revenue of $314 million, which landed within the company’s outlook range, decreased 2%, driven by a decline in Skin and Personal Care, and Diapers and Wipes, which was partially offset by growth in Household and Wellness. Despite strong consumption trends, Digital channel revenue decreased 10% driven by a reduction in shipments to a key digital partner and lower traffic to Honest.com. This decline was partially offset by Retail channel revenue growth of 7%, driven by increased retail distribution, price increases and expanded assortment of its products at retail partners.

“Honest’s mission to provide purpose-driven and purpose-designed products that reflect an ever-diversifying set of consumers is as meaningful today as when it was launched 11 years ago. Since joining Honest, just over two months ago, I’ve been impressed with the quality of the products, the strength of the brand, and the commitment of our teams and partners,” says CEO Carla Vernón. “Honest is a brand with a demonstrated ability to deliver mission-driven innovation and lead growth with the high-quality products our consumers love and value. That legacy will remain our North Star as we build a glide path to a stronger and more profitable Honest in 2024.”