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HONEST The Honest Company Reports Second Quarter 2021 Financial Results August 13 , 2021 Seventh consecutive quarter of year - over - year revenue and volume growth Revenue grew 3 % and 20 % , respectively , as compared to second quarter of 2020 and 2019 LOS ANGELES , Aug. 13 , 2021 ( GLOBE NEWSWIRE ) -- The Honest Company ( NASDAQ : HNST ) , a digitally native , mission - driven brand focused on leading the clean lifestyle movement , reported second quarter 2021 financial results for the three and six months ended June 30 , 2021 . " The underlying strength and financial performance of our overall business for the first half of 2021 reflects the ongoing success of our strategic initiatives focused on Content , Community , Commerce , and our powerful innovation and category expansion , " said Nick Vlahos , Chief Executive Officer of The Honest Company . " For the first half of 2021 , we were pleased to deliver 8 % revenue and volume growth on top of the accelerated COVID stock - up surge of 25 % revenue growth that we saw in the first half of 2020 as compared to the first half of 2019. We also exceeded our gross margin expectations for the overall business in the first half of 2021 , showing the strength of our business at a time when our entire industry faced a challenging input cost , inventory and supply chain environment . " Vlahos continued , " During the second quarter we saw positive consumer response to our new Clean Conscious Diaper and marketing innovation with over 17 % retail consumption growth for Honest's Diapers , Wipes and Personal Care products as measured by syndicated data for the thirteen - weeks ended June 27 , 2021. This growth on top of the significant COVID - 19 stock - up we experienced in the Diapers and Wipes category in 2020. As we look to the remainder of the year , we continue to have confidence in our three year strategic plan , Strategy 2023 , and are focused on executing with excellence to deliver shareholder value over the long - term and solidify Honest's position as the next generation , modern CPG company . " Second Quarter Highlights • Revenue grew 3 % from the second quarter of 2020 ; excluding an estimated $ 3.7 million COVID - 19 stock - up impact primarily in Diapers and Wipes in the prior year period , revenue growth was 9 % ( ¹ ) : o Skin and Personal Care revenue increased 16 % from the second quarter of 2020 and increased 39 % as compared to the second quarter of 2019 . o Diapers and Wipes declined 2 % as compared to the second quarter of 2020 with mid - single digit growth in diapers offset by the 2020 COVID - 19 stock - up impact in the prior year period . Diapers and Wipes grew 17 % as compared to the second quarter of 2019 . o Household and Wellness revenue declined 6 % from the second quarter of 2020 as consumer and customer demand for sanitization products decreased as consumers became vaccinated and customers managed heavy levels of inventory . Household and Wellness declined 31 % as compared to the second quarter of 2019 as we simplified the product portfolio while discontinuing certain non - core products that did not align with our revamped product strategy . • Gross margin was 36 % representing a decrease of 50 basis points from the second quarter of 2020 and expansion of 710 basis points from the second quarter of 2019 ; notably , gross margin expanded 110 basis points from the first quarter of 2021 ; the gross margin decline from the second quarter of 2020 was driven by more normalized levels of trade spend ; the expansion in gross margin vers us the second quarter of 2019 and the first quarter of 2021 was driven in part by our cost savings and product mix initiatives • Net loss was $ 20.0 million ( including one - time IP O related costs and other transaction - related expenses ) and adjusted EBITDA was a loss of $ 0.8 million for the second quarter of 2021 ( 1 ) Calculated based on non - GAAP adjusted revenue for the second quarter of 2020 of $ 68.7 million . See the reconciliation of non - GAAP adjusted revenue , a non - GAAP financial measure , to revenue calculated in accordance with GAAP in the discussion at the end of this press release . Second Quarter 2021 Revenue by Product Category and Channel ( In thousands , except percentages ) Diapers and Wipes Skin and Personal Care Household and Wellness $ For the three months ended June 30 , 2021 47,831 $ 23,866 2,879 2020 48,744 $ 20,558 3,052 2019 40,823 17,121 4,173 2021 vs 2020 % change ( 2 ) % 16 ( 6 ) 2020 vs 2019 % change 19 % 20 ( 27 ) 2021 vs 2019 % change 17 % 39 ( 31 )