Honest names former Amazon executive as new CEO

Bloomberg

Honest Co, the personal-care company founded by actress Jessica Alba, appointed former Amazon.com Inc and General Mills Inc executive Carla Vernón as its new chief executive officer.
Vernón assumes the role starting from January 9 and will replace Nick Vlahos, who has led the company since 2017 and took it public last year. Vlahos will remain on Honest’s board, according to a statement.
The new CEO was previously vice president of consumables at Amazon, where she oversaw categories such as baby care, household products and beauty, Honest said, adding that she was “instrumental in invigorating Amazon.com’s beauty experience” by introducing virtual lipstick try-on and creating a seasonal beauty sales event. Vernón becomes one of the only Afro-Latina CEOs at a publicly traded company, according to Honest.
She takes the reins at a company that has struggled to meet the expectations set at its IPO.
Honest, which sells diapers, shampoo and makeup that it markets as environmentally sustainable and free of harmful ingredients, has seen its shares steadily decline and took a hit earlier this year when sales of its cleaning products slumped more than expected as the pandemic eased. Consumers also returned to stores faster than foreseen, but the digitally-native brand didn’t have enough presence in retail — a misstep it’s trying to fix.
In November, the company posted third-quarter results earnings that missed investor expectations. Management said it expects sales to rise 7% to 10% in the first half of 2023 as its products become more widely available and price increases kick in.
Honest shares jumped 5.6% in New York trading. The stock has declined about 65% this year and 82% since the IPO, bringing the company’s market capitalisation to $264 million.