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HONEST The Honest Company Reports Third Quarter 2021 Financial Results November 10 , 2021 Eighth consecutive quarter of year - over - year revenue and volume growth Revenue grew 6 % as compared to third quarter of 2020 and 47 % as compared to third quarter of 2019 Diapers and Wipes and Skin and Personal Care combined revenue grew 20 % as compared to third quarter of 2020 LOS ANGELES , Nov. 10 , 2021 ( GLOBE NEWSWIRE ) -- The Honest Company ( NASDAQ : HNST ) , a digitally native , mission - driven brand focused on leading the clean lifestyle movement , today reported third quarter 2021 financial results for the three and nine months ended September 30 , 2021 . Third quarter results reflect Honest's strategic investments in its core product categories across Diapers and Wipes and Skin and Personal Care , with both categories experiencing revenue growth compared to the third quarter of 2020 and 2019 . " The progress and underlying strength of our business reflects the continued success of our strategic initiatives . This past quarter's results reflect solid execution by our team , delivering growth , increasing market share , accelerating household penetration and adding incremental omnichannel distribution , " said Nick Vlahos , Chief Executive Officer of The Honest Company . " As our entire industry has faced a dynamic operating environment with significant inflationary pressure and supply chain challenges , our solid revenue and gross margin performance continues to show the strength of our business . As we look to the future , we remain confident in our strategic plan and are focused on executing with excellence to deliver long - term shareholder value and further solidify Honest's position as the next generation , modern CPG company . " Third Quarter Highlights • Revenue grew 6 % from the third quarter of 2020 led by Diapers and Wipes and Skin and Personal Care , which collectively grew 20 % compared to the third quarter of 2020 , partially offset by a decline in Household and Wellness . • Gross profit of $ 29.8 million and gross margin of 36 % reflecting strong demand for our product offerings as well as efficiencies from our costovation strategies which mitigated the negative impact of cost inflation . • Expanded retail distribution to over 40,000 retail locations in the third quarter of 2021 , an increase of 10 % as compared to the third quarter of 2020 . • Introduced consumer - centric new marketing including our Lavender Nighttime campaign and support for our Beauty Restage that highlighted the breadth of our Skin & Personal Care line and the sustainability improvements in our Beauty portfolio . • Increased household penetration to 3.5 % , a 10 % increase as compared to the third quarter of 2020 . Third Quarter 2021 Revenue by Product Category and Channel ( In thousands , except percentages ) Diapers and Wipes Skin and Personal Care Household and Wellness Total Revenue ( In thousands , except percentages ) Digital Retail Total Revenue For the three months ended September 30 , 2021 2020 2019 $ $ $ 53,847 $ 25,375 3,429 82,651 46,283 $ 38,923 13,684 19,779 11,866 3,726 $ 77,928 $ 56,333 For the three months ended September 30 , 2021 2020 2019 $ 39,114 $ 43,537 82,651 $ 43,952 $ 33,976 77,928 $ 30,755 25,578 56,333 2021 vs 2020 % change 16 % 28 ( 71 ) 6 % 2021 vs 2020 % change ( 11 ) % 28 6 % 2020 vs 2019 % change 19 % 45 218 38 % 2020 vs 2019 % change 43 % 33 38 % 2021 vs 2019 % change 38 % 85 ( 8 ) 47 % 2021 vs 2019 % change 27 % 70 47 % Revenue increased 6 % to $ 82.7 million for the third quarter of 2021 compared to the third quarter of 2020 when revenue increased 38 % compared to the third quarter of 2019. The increase in revenue for the third quarter of 2021 compared to the third quarter of 2020 was primarily a result of strong volume growth in our Skin and Personal Care and Diapers and Wipes product categories primarily within our Retail channel , partially offset by a decline in the Household and Wellness product category . Revenue would have grown 12 % , ( 1 ) excluding an estimated $ 4.4 million in COVID - 19 related revenue generated in the third quarter of 2020 primarily from sanitization and disinfecting products , which are included in our Household and Wellness product category . Our retail consumption outpaced category growth with Honest diapers increasing 24 % , Honest wipes increasing 23 % and Honest