Honest Co. hired Carla Vernón, a veteran of Amazon.com Inc., to guide the consumer-products startup out of rough waters. Her turnaround bid relies largely on the e-commerce giant’s biggest rival: Walmart Inc.
The company, which for years got most of its revenue from e-commerce, is betting an expanded presence in the aisles of the largest US retailer will provide the boost it needs following a 91% slump in its stock price since its 2021 public offering. Honest’s baby wipes, shampoos and body washes are arriving at all US Walmart locations this summer, while its diapers are now in about half of the discounter’s locations.
Vernón’s moves seem to be paying off. This month, Honest reported strong retail results for the second quarter, which helped boost sales above analysts’ average estimate. Honest, which is also sold in Target Corp. and Publix locations, has seen its share of revenue from retail locations climb in recent years. It first entered Walmart stores in fall 2022, and has gained distribution since then.
Honest has said that Walmart is helping it gain new shoppers in the US South and Southeast, regions where it hasn’t had a strong following. Walmart now stocks Honest diapers and wipes in its aisles next to competing products, instead of just on end-of-aisle displays, Chief Financial Officer Kelly Kennedy said during an Aug. 8 conference call.
Honest isn’t abandoning its online business, which includes subscriptions for diapers and wipes. Digital sales also increased in the company’s most recent quarter. But a stronger brick-and-mortar presence could help offset weakness in the online channel. The company said there was lower traffic to Honest.com in 2022.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Walmart CFO on gaining high-income shoppers: 'This is not your grandfather's Walmart'Walmart's refresh is inviting in a new wave of customers, according to the company's C-suite.
Lire la suite »
Walmart vs. Target: Why you can't compare their earningsWalmart's (WMT) second quarter earnings results smashed analyst expectations. Rival Target (TGT) however, reported results that were mixed. Bernstein Senior Research Analyst Dean Rosenblum and LSEG Director of Consumer Research Jharonne Martis joined Yahoo Finance Live to discuss the retailers' results. Rosenblum says comparing the two retailers is 'something of a false equivalency.' 'They are very, very different businesses,' Rosenblum said, pointing out how Walmart has a more substantial food and beverage business than Target. 'In an environment where consumers are stretched and just trying to cover the essentials, a retailer like...Walmart who is the biggest grocer in the world is going to benefit tremendously,' Rosenblum said. Martis noted that more high-end consumers are shopping at Walmart and at TJX Companies (TJX) saying, 'the high-end consumer, who we've learned from the luxury retailers, is being more conservative.' 'They still want the best brands, but they want to pay significantly less for them,' Martis said, adding 'the American consumer, what's really enticing them, is those steep promotions.' When it comes to stocks to buy, Rosenblum has an 'outperform' rating on Target and a 'market perform' rating on Walmart. When asked to explain why, Rosenblum said 'Target is priced for desperation and Walmart is priced for perfection.' Click here to see more from the Yahoo Finance series 'Retail Evolution: The New Era.'
Lire la suite »
Walmart flashes a warning sign to the entire consumer economy: Andrea FelstedWalmart just highlighted the dark side of inflation.
Lire la suite »
Walmart earnings, jobless claims, mortgage rates: What to watchYahoo Finance Live co-host Seana Smith highlights investors should look out for tomorrow, Thursday, 17, from corporate earnings for retailer Walmart (WMT), Ross Stores (ROST), luxury brand Tapestry (TPR) amid its acquisition deal with Capri Holdings (CPRI), and semiconductor manufacturer Applied Materials (AMAT), to economic data on the latest jobless claims print and mortgage rates.
Lire la suite »
Walmart raises forecasts, tops quarterly sales estimates as lower prices pull in shoppersWalmart now expects fiscal 2024 earnings to be in the range of $6.36 per share to $6.46 per share, compared to the prior forecast of $6.10 to $6.20
Lire la suite »
China’s sliding yuan could be next ‘black swan event’ for markets, hedge fund EDL saysFirm is betting on further falls for China’s offshore currency
Lire la suite »