While many brands and retailers continue to place large bets on China, Jessica Alba’s consumer packaged goods (CPG) firm The Honest firm is abandoning the country entirely, as well as Europe, in order to double down on key areas where the company is already booming. The business also stated that it will discontinue low-margin product categories and SKUs.
According to the company’s Q1 2023 results call on Tuesday (May 9), revenue increased by 21% to $83 million. This expansion may be attributable to a variety of causes, including strong retail consumption, an increase in the digital channel, distribution gains achieved in 2022, increased income earned from baby clothes, and the beneficial impact of pricing increases.
“Our first-quarter revenue growth of 21% and tracked channel consumption growth of 30% reflect the strength of the Honest brand.”With well-balanced growth across digital and retail channels, both of which increased by more than 20% in the quarter, we remain confident in our omnichannel approach of making Honest products available when and where it is most convenient for customers,” said CEO Carla Vernón.
Revenue increase in the company’s numerous product categories drove revenue growth in the first quarter of 2023. Diapers and wipes revenue increased by 23%, accounting for 64% of total revenue. Gains in retail consumption across diapers, wipes, and infant personal care were ascribed to the growth, which was assisted by increased distribution and a broader range.
