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Shares of Jessica Alba’s Honest Co. fell a whopping 26 percent on Friday after the company reported sales declines compared to last year when consumers were hoarding diapers and other products.
Known for its eco-friendly and baby products, Honest Co. said sales of its diapers and wipes decreased by 2 percent to $47 million in the second quarter ended June 30 compared with a 19 percent increase a year ago.
Sales of its household and wellness products also declined by six percent to $2.9 million.
The stock recently traded down more than 26 percent to about $10 a share, or less than half of what the stock was worth when the “Dark Angel” actress took the 10-year-old company public in May at $21.22 a share.
Honest Co. is just the latest household goods business to report sales declines compared to 2020 when consumers were stockpiling goods in preparation for global coronavirus lockdowns.
“Household and Wellness sales have been softer than expected as consumer demand has decreased as more consumers have become vaccinated and retailers continue to manage heavy inventories of sanitization and disinfecting products in stores,” the company said in a statement.
Honest said it lost $20.2 million, or 17 cents a share in the quarter, compared with a loss of a penny a share a year ago.
The company’s skins and personal care products were the winner of the quarter, sales of which increased by 16 percent to $24 million.
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