Honest Company has exited its direct-to-consumer (DTC) sales model. Having pioneered subscription-based sales of baby diapers and wipes over a decade ago, the company is now shifting focus to higher-margin product categories. It ceased operations on its official website and mobile platform by the end of December and withdrew from both physical retail and e-commerce channels in Canada.
Previously, Honest products were available through major brick-and-mortar retailers including Walmart, Target, Amazon, and Kroger. In November 2025, Honest launched its “Transformation 2.0: Powering Honest Growth” initiative. This initiative builds upon the company's three existing transformation pillars: brand maximization, margin improvement, and operational standardization. It aims to enhance business simplicity, focus, and profitability through specific actions including: exiting certain low-margin, non-strategic categories and channels (including shutting down Honest.com operations), ceasing sales in Canada, optimizing cost structures by streamlining sales and administrative expenses, and improving supply chain efficiency. Honest disclosed that the affected businesses represent approximately 22% to 23% of total sales.
Previously in 2023, Honest exited European and Asian markets to better focus on driving growth in North America and discontinued certain low-margin products (primarily impacting segments of the household market). At that time, the company reported that sales of baby diapers and wipes accounted for about 65% of its total revenue.
