By Dhirendra Tripathi
Investing.com – The Honest Company stock (NASDAQ: HNST ) surged 12% Thursday as the company sold more diapers and skin and personal care products to go past analysts’ estimate for its third-quarter revenue.
It was the eighth consecutive quarter of year-over-year revenue and volume growth for the company, which focuses on sustainable processes and products.
Year-on-year revenue growth of 6% to around $83 million was led by diapers and wipes and skin and personal care. The categories collectively grew 20% compared to the third quarter of 2020, partially offset by a decline in household and wellness products.
The company also reaped the benefit of expanded distribution, closing September with 40,000 retail locations.
Diapers and wipes contributed 65% of the company’s third-quarter revenue.
With more people vaccinated now and able to move out freely, retail channel revenue rose and pulled ahead of digital revenue after trailing for several quarters.
Household and wellness products sales were dampened as consumer demand for sanitization and disinfecting products weakened after growing strongly during the pandemic.
The net loss more than doubled to $5.1 million and fell short of expectations.
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