After hitting its 52-week low closing price a year ago, shares in The Honest Company Inc. have rebounded by more than 300%.

The stock price in the Playa Vista consumer products manufacturer for women, babies and families was helped by a strong third quarter earnings report released after the market closed on Nov. 12. The share price closed that day at $4.80 and then shot up 25% to close at $6.01 on Nov. 13 on the highest trading volume of the past year. More than 17 million shares traded that day, outperforming the average trading volume of 2.6 million shares by a wide margin.

The Honest Co. reported net income of $165,000 (0 cents a share) for the quarter ending Sept. 30, compared to a net loss of $8.1 million (-9 cents) in the same period of the previous year. Revenue increased by 15% from the third quarter of the prior year to $99.2 million.

On Nov. 27 of last year, the stock price was at $1.91, the lowest amount of the past year. It closed at $8.18 on Nov. 27 of this year, for an increase of 328%.

Company Chief Executive Carla Vernón said that the third quarter results are a clear reflection of the power of the Honest brand and the strength of the company’s team that has executed its growth strategy with discipline and excellence.

“Our ability to grow profitably is evidenced in our results – with double digit revenue growth reaching an all-time high, significant expansion in gross margin, and positive net income for the period,” Vernón said in a statement. “We are confident that our long-term growth strategy will continue to allow us to scale across our categories, meeting the growing consumer demand for cleanly-formulated and sustainably designed products across our portfolio.”

For the full year, Honest expects revenue to grow in high single digits from 2023, while the prior outlook from the second quarter had called for mid to high single digit growth. The outlook also increased adjusted earnings before interest, taxes, depreciation and amortization to $20 million to $22 million from the prior outlook of $15 to $18 million. 

Dave Loretta, chief financial officer of Honest, said during a conference call with analysts from Nov. 12 that as the company looks ahead, it believes it has strengthened its foundation for future growth and expects the ongoing execution of its strategy to deliver annual revenue growth, expand profit margins and generate strong cash flow.

The investments made in the business are ultimately in support of expanding the availability of Honest products to all the places its customers shop, he said.

“As a result, we believe we are well-positioned to continue building on our financial gains and drive increased value for our shareholders,” Lorette added.

During the call, two analysts asked specifically about tariffs as Honest sources its wipes products from China. President-elect Donald Trump has said that he will increase tariffs on products coming from China once he is in office.

Laura Champine, research director and senior consumer analyst with Loop Capital Markets in New York City, asked about the tariffs and if Honest was comfortable in raising prices on its products imported from China to offset an increase in cost from them.

Loretta said that it will take some time to implement the tariff and that he didn’t think it would have any impact in the coming year.

“But what we do see is that the flexibility we have on sourcing is something that we’re already well underway of working on with our supplier,” Loretta said. “(We’re) looking at other countries of origin, other supply locations and also actively looking at cost reductions in the wipes product itself.”