The Honest Company (NASDAQ:HNST) Inc shares nosedived on Wednesday after actress Jessica Alba announced her departure from the company.
Having co-founded Honest in 2012, Alba said earlier this week that she was to step down as the consumer goods firm’s chief creative officer to pursue “new projects and passions”.
“Honest has been a true labour of love for me - one that showed me what’s possible when you infuse purpose into business,” Alba, who starred in 2005’s ‘Fantastic Four’ movie, said.
“While there never would have been an easy time to make this decision, I know we have a leadership team in place to advance my founding vision and protect Honest’s reputation as an industry changemaker.”
Honest began trading on the Nasdaq in 2021, with its most recent filings showing a 10% jump in annual sales revenue to US$90.26 million.
A surprise profit was recorded in the fourth quarter, which Honest attributed to price increases and growth of its digital channel.
Alba will remain on Honest’s board of directors, though news of her resignation sent shares in the company down 7.3% to US$3.45 during Wednesday’s trading.
Since floating in 2021, shares are down almost 82%.