The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Honest (HNST) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Honest is a member of our Consumer Discretionary group, which includes 270 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of th ...

The Honest Company, Inc. (HNST) reported solid third-quarter 2024 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.The Honest Company reported impressive double-digit revenue growth, hitting an all-time high in sales, alongside a significant expansion in gross margin. The company's strategic focus on its transformation pillars, brand maximization, margin enhancement and operating discipline has been key to its success. The better-than-expected third-q ...

Financial Data and Key Metrics Changes - The Honest Company achieved its highest quarterly revenue in history with $99 million in sales, representing a 15% year-over-year increase [7][26] - Gross margin expanded to 39%, an increase of 710 basis points compared to the same period last year [7][30] - Adjusted EBITDA was $7 million, marking the fourth consecutive quarter of positive adjusted EBITDA [8][35] Business Line Data and Key Metrics Changes - Strong performance was noted in the baby products and wipes portfolios, contributing to the overall revenue growth [26] - Retail tracked channel consumption grew 9% year-over-year, while Amazon consumption increased by 19% [9][26] Market Data and Key Metrics Changes - Honest's portfolio outperformed the personal care sector, which saw a 2% decline in consumption [9] - Household penetration among Honest users reached 6.7%, an increase of 23 basis points year-over-year [18] Company Strategy and Development Direction - The company focuses on brand maximization, margin enhancement, and operating discipline as transformation pillars [7] - There is a strategic intent to expand distribution, particularly in the dollar store segment, where Honest currently has no presence [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of consumption trends, supported by strong household penetration and repeat purchase rates [64][66] - The company raised its full-year revenue guidance to high single-digit percentage growth and adjusted EBITDA guidance to $20 million to $22 million [38][40] Other Important Information - The company is actively monitoring potential tariff impacts on its wipes sourced from China and is preparing for diversification of sourcing [76][78] - Marketing expenses increased to $13 million, reflecting a balanced approach to brand awareness and consumer engagement [34] Q&A Session Summary Question: Impact of shipment benefits on the quarter - Management indicated that approximately 3 to 4 percentage points of revenue growth were attributed to inventory supplied for retail events [46] Question: Confidence in marketing investments for growth - Management expressed comfort in increasing marketing spend to drive brand awareness and trial, noting positive results in household penetration [50] Question: Opportunity in the Dollar Store segment - Management highlighted a growth strategy focused on distribution, noting that there is significant runway for expansion in the dollar channel [55] Question: Sustainability of consumption trends - Management indicated strong underlying fundamentals for consumption, driven by unit growth and increased basket sizes [64][66] Question: Gross margin sustainability - Management confirmed that gross margin improvements are structural and sustainable, with ongoing efforts to reduce product costs [67][69] Question: Amazon Prime Day effectiveness - Management noted that Prime Day attracts both loyal customers and new-to-brand shoppers, enhancing brand awareness [72][74] Question: Exposure to China sourcing - Management is actively working on plans for diversification and cost reductions in response to potential tariffs on wipes sourced from China [76][78] Question: Gross margin lift from price mix benefits - Management clarified that the gross margin increase was primarily due to cost savings rather than pricing [81]

Honest (HNST) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this consumer products company would post a loss of $0.05 per share when it actually produced a loss of $0.04, delivering a surprise of 20%.Over the last four quarters, the company has surpa ...

Achieves Record Revenue of $99 million, an Increase of 15% from Prior Year QuarterDelivers Positive Net Income, an Increase of $8 million from Prior Year QuarterExpands Gross Margin 710 Basis Points to 39% Versus Prior Year QuarterRaises Full Year 2024 Revenue and Adjusted EBITDA Outlook LOS ANGELES, Nov. 12, 2024 (GLOBE NEWSWIRE) -- The Honest Company (NASDAQ: HNST), a personal care company dedicated to creating cleanly-formulated and sustainably-designed products, today reported financial results for the ...

Achieves Record Revenue of $93 million, up 10% Improved Profitability with Gross Margin of 38%, a 1,120 Basis Point Increase Raises Full Year 2024 Revenue and Adjusted EBITDA Outlook LOS ANGELES, Aug. 08, 2024 (GLOBE NEWSWIRE) -- The Honest Company (NASDAQ: HNST), a personal care company dedicated to creating clean- and sustainably-designed products, today reported financial results for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023. "This quarter, it i ...

For Immediate Release Industry: Consumer Discretionary Chicago, IL – June 14, 2024 – Today, Zacks Equity Research discusses Reynolds Consumer Products Inc. (REYN) , Central Garden & Pet Co. (CENT) , The Honest Company, Inc. (HNST) and Lifetime Brands, Inc. (LCUT) . Link: https://www.zacks.com/commentary/2287761/4-stocks-to-watch-in-a-promising-consumer-productsdiscretionary-industry The Consumer Products-Discretionary industry looks promising amid gradually easing inflation and evolving consumer preferences ...

Shares of Honest (HNST) have been struggling lately and have lost 8.8% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the sto ...

Honest (HNST) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 87.50%. A quarter ago, it was expected that this consumer products company would post a loss of $0.08 per share when it actually produced earnings of $0.01, delivering a surprise of 112.50%.Over the last four quarters, the company ...

Updated Post Q1 2024 Earnings You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation primarily on our current expectations and projections about future events and trends that we believe may impact our business, financial condition and operating results. Please note that these forward-looking statements reflect our opinions only as of the date of this presentation and we undertake no obligation to revise ...