Yahoo Finance Live anchors discuss second-quarter earnings for the Honest Company.
BRAD SMITH: Also, we're going to be taking a look at the opening bell here in just a few seconds here. Here's a look at the New York Stock Exchange.
All right, and there's a live look at the New York Stock Exchange. Up there on the podium, you've got Active Plus NYC ringing the opening bell. And taking a look at the major averages as we begin today's trading activity, we were pointing higher across the board earlier today. We'll see exactly where things open up. We got some hearty Friday chants down there on the floor of the New York Stock Exchange.
And there, you're taking a look at the major averages as we open higher across the board right now. The Dow opens up by about 4/10 of a percent. The S&P 500, you're also seeing that in the green by about half a percent as well, 19 points to the upside. And that tech-heavy NASDAQ, yeah, you're seeing that up by about 6/10 of a percent right now, 81 points to the upside.
BRIAN SOZZI: Easy money being made on Wall Street. Another name we're watching here for earnings is Honest Company, another company we have been super critical with over the past couple of quarters. Honest Company, Clorox, Poshmark, all of them we've watched. And wow. First, I understand the move here in the pre-market. The company just reported earnings today. But that stock, priced at $16 for that IPO in 2021, now trading at $3.90.
Really, the company has struggled just to overcome inflationary pressures, a lot of competition in that space. They play in "better for you" consumer products. This quarter, perhaps, a little bit better. Saw some strength in their diaper business. Also highlighting a move into, I guess, "better for you" concealer products. And there, you can see some of those things on the screen right there. But again, all in all, another challenging quarter, I would argue, for Honest. Profit margins, gross margins down 600 bips.
BRAD SMITH: Yeah, slight move higher that we're seeing perhaps reflective of the update that they issued as well in the full year gross margin outlook, reflecting some of the sequential improvement, perhaps derivative of what you just mentioned a moment ago in the strength that they had seen in some of the products, specifically the diapers and some of the other categories. Wipes and diapers, yeah.
BRIAN SOZZI: Brad, I had no "better for you" diapers when I was a kid. Whatever my mom could buy, she just bought. I mean, come on. I didn't have any of this stuff. I may have even had just paper put on me. I have no idea.
BRAD SMITH: It's not like there was diaper innovation back then.
BRIAN SOZZI: There was no diaper innovation.
BRAD SMITH: Right.
BRIAN SOZZI: Nothing.
BRAD SMITH: You just-- you know.
BRIAN SOZZI: Nothing.
BRAD SMITH: You just stick some extra--
BRIAN SOZZI: I think I got wrapped in leaves. I think my mom put leaves around me. I'm sure she'll text me and tell me, no, we didn't use leaves, but you get the point.
BRAD SMITH: Biblical Brian.
BRIAN SOZZI: Yeah, biblical Brian, yes.
BRAD SMITH: Yes.