Q4 2021 Results
For its fourth quarter, Honest said it lost $9 million during its fourth quarter, which worked out to a loss of $0.10 per share. Revenue for the quarter was $80.4 million. Wall Street had been expecting around $84.2 million in revenue, and an EPS loss of $0.08. Fiscal 2021 results tallied out to a loss of $38.7 million, or a loss of $0.43 per share, based on $318.6 million in revenue.
CEO Remarks: Inflation and Supply Chain
CEO Nick Vlahos noted that Honest expects inflation and supply chain issues to be an issue moving forward. Vlahos said the company is “driving innovation, investing in digital capabilities, expanding our distribution footprint and executing our pricing strategies to position Honest for long-term growth” in the face of operational headwinds.
2022 Guidance: Growth After the First Quarter
The Honest Company “projects full-year 2022 revenue to be approximately flat versus full year 2021, reflecting a decline in year-over-year revenue in the first quarter of 2022, followed by expected growth in the remaining three quarters of 2022.” Q1 2022 revenue is projected to drop about 15% compared to Q1 2021. The next three quarters are projected “to see mid-single digit growth compared to 2021.”