Shares of Honest Co. Inc. fell 6%, to $2.62, in premarket trading after the company logged a wider loss than expected in the fourth quarter as higher product and fulfillment costs weighed on margins.
The eco-friendly consumer-goods business posted a loss of $12.6 million, or 14 cents a share, compared with a loss of $9 million, or 10 cents a share, in the same quarter last year.
Analysts polled by FactSet had been expecting a loss of 5 cents a share.
Sales edged 2% higher, to $81.9 million, clearing analyst expectations by $1 million, according to FactSet.
The company said the uptick in revenue was driven by higher prices and distribution gains, which offset a decline in digital revenue.