05.17.22
In its first quarter earnings call, The Honest Company announced it would be launching its branded baby diapers and wipes on www.walmart.com in the third quarter and then in Walmart retail outlets across the U.S. in the fourth quarter. Executives are optimistic that the expansion will benefit sales beginning late 2022 and in 2023.
“Not only is Walmart the largest seller of diapers in the U.S., but their strength in the South and Southeast regions will significantly benefit Honest as our annual contract value in those markets is underdeveloped, the lowest of all U.S. regions,” says Nick Vlahos, CEO.
Honest will also expand its personal care product line into Ulta locations later this year, an expansion from its current online presence.
The company announced that during the quarter, diaper and wipe sales, representing 63% of total revenue, decreased 13% in the first quarter compared to the same period of 2021. While this was largely driven by declining digital traffic and purchases as more consumers returned to in-store shopping, sales were also impacted by supply chain disruption, specifically in the wipes business. Executives reported that diaper business was not significantly impacted by the supply chain crisis.
Honest has initiated mid- to high-single digit price increases across two-thirds of its product portfolio, including diapers and wipes. These measures should benefit margins in 2022.
“Not only is Walmart the largest seller of diapers in the U.S., but their strength in the South and Southeast regions will significantly benefit Honest as our annual contract value in those markets is underdeveloped, the lowest of all U.S. regions,” says Nick Vlahos, CEO.
Honest will also expand its personal care product line into Ulta locations later this year, an expansion from its current online presence.
The company announced that during the quarter, diaper and wipe sales, representing 63% of total revenue, decreased 13% in the first quarter compared to the same period of 2021. While this was largely driven by declining digital traffic and purchases as more consumers returned to in-store shopping, sales were also impacted by supply chain disruption, specifically in the wipes business. Executives reported that diaper business was not significantly impacted by the supply chain crisis.
Honest has initiated mid- to high-single digit price increases across two-thirds of its product portfolio, including diapers and wipes. These measures should benefit margins in 2022.