Dive Brief:
- The Honest Company has appointed Carla Vernón as its new CEO, starting Jan. 9, 2023, the company announced on Tuesday.
- With Vernón taking the helm of the company, current CEO Nick Vlahos will step down from the post after a nearly six-year tenure and transition to its board of directors.
- Before joining The Honest Company, Vernón was the vice president of consumables categories at Amazon and spent over two decades at General Mills.
Dive Insight:
The Honest Company has been busy reshaping its leadership over the past few years.
In 2021, the company hired Kelly Kennedy as its new CFO. A few months later, Honest added James White and Susan Gentile to its board of directors. Pete Gerstberger, an Amazon Key veteran, also joined as chief digital and strategy officer that year. The hiring spree has continued into 2022, with Honest bringing on Steve Winchell as its executive vice president of operations and research and development in June, and now the hiring of Amazon veteran Vernón as CEO.
“What makes Carla unique is her innate ability to drive product innovation and go-to-market strategies that captivate consumers’ imagination, strengthen brand loyalty, and significantly impact the bottom line,” founder and Chief Creative Officer Jessica Alba said in a statement. “I could not dream of a better person to take Honest into this exciting new chapter. With Carla at the helm, I am confident Honest will continue to redefine category expectations and pave the way for others to follow.”
Honest’s business has also evolved over the past few years. In April 2021, the company filed to go public, one of a slew of retailers that did so that year. Its stock price has fallen significantly since its debut, but the retailer has forged ahead with new partnerships to expand its reach.
The Honest Company signed a deal with Walmart in July to sell its products both in stores and online, including items like diapers, eczema relief products, wipes and other personal care items. The following month, the company expanded its wholesale deal with Ulta Beauty to include more than 635 of the beauty retailer’s physical stores.
Incoming CEO Vernón comes from another wholesale partner, Amazon. In fact, she worked with Honest on its platform at Amazon, something current CEO Vlahos praised, saying she “understands how to engage the conscious-minded shopper and their desire for clean and natural products.”
“With the recent distribution expansion that has delivered record-high retail sales and a strong management team in place, now is the perfect time for Honest to transition to its next CEO,” Vlahos said in a statement.
In November, The Honest Company reported modest Q3 revenue growth. The company saw a 2% bump in revenue to $85 million overall. While its household and wellness category grew 115%, and the diapers and wipes business increased 3% year over year, the skin and personal care division declined by 13%.
