The Honest Company’s 5 November release reported third-quarter revenue of $84.6 million, down 8.6% from a year earlier. Its own organic revenue measure came to $79.3 million, up 9.2% on the comparable adjusted base. Both figures refer to the quarter ended 30 September. They compare different sets of activities. The Honest Company results and reconciliation
Honest’s reconciliation removes revenue from activities it has been exiting, including apparel, fulfilment through its own website and sales to Canadian retail channels. When comparing the remaining business, Honest attributed growth to wipes and personal care, partly offset by lower diaper revenue. The unadjusted number still matters because revenue from an operation disappears when the company exits it. The adjusted comparison helps explain what happened in the business management chose to keep. The Honest Company results and reconciliation
Through WCRC’s Powerful Brands methodology, the question is whether the narrower business earns repeat demand. A retailer could compare unit sales and repeat purchases of wipes and personal care products in the same stores. Expanding distribution can lift sales even while shoppers buy at the same rate in each store. Tracking both measures would help distinguish distribution gains from stronger performance on the shelf. WCRC Powerful Brands methodology · WCRC on distinct promises in personal care
Diapers warrant their own comparison. A household can buy wipes regularly and still choose another brand’s diapers. The next useful evidence is whether each category is winning more repeat purchases at the retailers Honest continues to serve.