The Honest Company, the consumer products manufacturer that pioneered e-commerce and subscription-based baby diaper and wipes sales more than a decade ago, has moved away from direct-to-consumer (DTC) sales as part of a plan to shift focus toward more profitable categories. The company ended website sales and ceased operations of its mobile app in late December and has exited both brick and mortar and e-commerce retailers in Canada .

“These updates were made with you, our loyal Honest family, at heart and will allow us to focus on what matters most: developing and designing products that meet our rigorous Honest Standards for you and your loved ones,” the company said in a note to its customers. 

In recent years, Honest products have rolled out to more brick and mortar retail sites including Walmart, Target, Amazon and Kroger.

In November, Honest launched its Transformation 2.0: Powering Honest Growth (the “Powering Honest Growth”), which builds upon the company’s original transformation pillars of brand maximization, margin enhancement and operating discipline. Powering Honest Growth is aimed at improving simplicity, focus and profitability, which includes exiting certain lower margin, non-strategic categories and channels, including exiting Honest.com fulfillment and apparel, ceasing Canadian sales, optimizing the company’s cost structure by rightsizing selling, general and administrative expenses and implementing supply chain efficiencies.

According to Honest the businesses impacted by the plan represented an average of 22-23% of total sales.

Previously, in 2023 as part of another transformation plan, Honest exited the European and Asian markets to allow it to better focus on how to drive growth in North America and moved away from certain low margin products primarily impacting portions of the household market. At the time, the company reported that baby diaper and wipes sales represented about 65% of its overall revenue.