The consumer products company says it gets more than half its revenue from just three retailers: Target, Amazon and Costco.
What happened
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Why it matters
In an April 9 prospectus that emphasizes its reliance on just three retailers, The Honest Co. filed for an initial public offering with the Securities and Exchange Commission. Its placeholder IPO target is $100 million, according to the filing.
Last year the consumer products company generated 45% of its revenue from retail partners (including their e-commerce), and about 55% of 2020 revenue came from digital channels, with a third coming from its own website. The company said Target accounts for about 23% of its revenue, Amazon about 22% and Costco about 8%, according to the filing.
The Honest Company also said it has "incurred net losses each year since [its] inception and ... may not be able to achieve or maintain profitability in the future." But in 2020, the company’s revenue rose 27.6% year over year to $300.5 million, as operating loss narrowed by 57% to $13.5 million and net loss narrowed 53.5% to $14.5 million.
This news brief is based on reporting published by Retail Dive on 2021-04-13. The original report is linked below.
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