THE WHAT? Jessica Alba’s brainchild the Honest Company is set to list on the Nasdaq exchange at a valuation of $1.4bn, signalling a comeback for the business, according to a report by the FT.com.
THE DETAILS The clean beauty company, which has yet to be profitable, has seen a string of product lawsuits and recalls.
In 2017 Honest recalled baby wipes due to mould being found in packaging and baby powder over skin and eye infection concerns.
Taking to the IPO prospectus, Alba said, ‘Our rapid growth was compromising key business functions.”
However, having enjoyed a period of success during the pandemic as consumers sought out cleaning products and household items, Honest’s revenues rose from $236m in 2019 to $300m in 2020.
THE WHY? The recent listing valuation signals the company is going in the right direction. While Alba will be stepping down from the board, the Actress will continue to head up the creative aspect of the brand as Chief Creative Officer.
According to the IPO, “Jessica Alba is a globally recognised Latina business leader, entrepreneur, advocate, actress and New York Times bestselling author. Our brand may . . . depend on the positive image and public popularity of Ms Alba to maintain and increase brand recognition.”