- Honest Company, the startup of Jessica Alba’s consumer goods, applied for a scholarship on Friday.
- It generated $ 300.5 million in revenue last year, with diapers and diapers accounting for 63% of sales.
- The company, which has never been profitable, plans to trade on the Nasdaq under the symbol “HNST.”
- See more stories on Insider’s business page.
Jessica Alba’s setup for consumer goods Honest Company is announced.
The company filed for trading on Friday with plans to sell shares on the Nasdaq under the symbol “HNST.” It listed a bursary holding value of $ 100 million.
Diapers and wipes accounted for 63% of the company’s revenue of $ 300.5 million last year. Skin, personal care, household and wellness products made up the rest of the sales.
While the company’s revenue grew by approximately 28% by 2020 compared to the previous year, it reported a net loss of $ 14.5 million. It has never been profitable annually since its inception in 2012.
“We have suffered net losses every year since our inception and may not be able to achieve or maintain profitability in the future,” the company wrote in the risk factors section of its S-1.
Honest Company’s growth in 2020 was driven in part by an increase in digital sales, which last year accounted for 55% of its revenue. Indigenous brands like Honest, which sells products on Honest.com, and digital retailers like Amazon, benefited from an overall shift to e-commerce last year as brick-and-mortar stores closed during the coronavirus pandemic. U.S. e-commerce sales rose 32.4% to $ 791.7 billion in 2020, according to the U.S. Census Bureau.
“We are seeing consumers increasingly self-educating about the benefits of clean and natural products through social media, influencers and other online content, driving digital engagement and purchases that support the continued growth of the e-commerce channel,” the company said in its prospectus. writing.
Alba started Honest Company with the goal of making consumer products that the actress considered ‘clean’, with the exception of chemicals and materials such as parabens and sulfates. The brand’s approach to labeling its products has led to difficulties in the past. In 2017, the company filed a lawsuit alleging that some of its products were fraudulently labeled as ‘natural’, ‘plant-based’ or ‘no harsh chemicals (ever!)’. “
“Health and safety incidents or inaccuracies in the advertising or mislabeling of products can adversely affect our business by exposing us to lawsuits, product reminders or regulatory enforcement actions,” the company wrote in its Risk Factors section.