The brand's financial report is out, revenue stagnated and losses worsened!

In recent times, major listed companies have successively disclosed their financial reports for the fourth quarter and full year of 2022. Many big sellers have handed in a fairly good answer sheet.

Recently, the beauty and personal care brand The Honest Company also announced its financial data for 2022. It is understood that The Honest Company is a brand founded by Hollywood actress Jessica, focusing on natural, organic and harmless maternal and child products and household products.

However, to the shock of many, the personal care giant’s revenue grew by only 2% in the fourth quarter of last year, and by only 12% for the full year, with diapers, wipes and other personal care products contributing most of the growth.

Although revenue has increased, losses have further increased. According to financial data disclosed by The Honest Company, net losses increased to $12.6 million in the fourth quarter of 2022, and the figure was $9 million in 2021. The net loss for the whole of last year also increased, from $38.7 million in the previous year to $49 million.

Faced with stagnant revenue and growing losses, The Honest Company has also tried to make some changes. In the past few years, the layout of its offline stores in the United States has increased by 16%, and it has entered many supermarkets such as Walmart and Publix.

In addition, the company's founder is considering streamlining the business and cutting off unprofitable departments and products. After research, it was found that beauty products may become a new growth point for the company's future revenue.

On Tuesday, Grove Collaborative, a local blockbuster in the United States , also announced its revenue data for 2022, showing that its revenue even fell by 16% compared with the previous year, but its losses narrowed year-on-year because the company laid off a large number of employees last year in order to reduce costs and increase efficiency.

Both companies predict that they will break even by 2024. Currently, both companies have a presence on Amazon. After searching, it was found that The Honest Company's best-selling product on the platform is a baby diaper, which has received more than 12,000 reviews and a score of 4.5, which is quite good overall.

However, Grove Collaborative only entered the Amazon and Walmart online platforms in February this year and is still in the early stages of development.

However, as the trend of American consumers returning to physical stores gradually increases, both Grove Collaborative and The Honest Company have stated that they will increase their investment in offline retail stores in the future.

Industry insiders predict that as online traffic growth approaches saturation, more and more sellers may choose to expand offline in the future.

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