Honest Appoints Dave Loretta for the role of CFO

The Honest Company has appointed Dave Loretta, a seasoned corporate finance professional, as its new Chief Financial Officer (CFO), the consumer products manufacturer announced on Tuesday.

Effective September 25th, Loretta will assume the role, taking over from Kelly Kennedy, who has been serving as the CFO for the past two and a half years. Kennedy played a pivotal role in guiding the company through a successful initial public offering (IPO), as stated in a press release.

As part of the transition process, Kennedy has agreed to stay on as a consultant at the company until December 31st to ensure a smooth handover, according to the filing.

Loretta brings with him a wealth of experience, boasting more than 25 years in his field. His most recent position was as the CFO of the clothing retailer Duluth Trading. Before that, he held the position of finance chief at the department store chain Nordstrom.

Founded by actress Jessica Alba and headquartered in Los Angeles, California, The Honest Company is dedicated to creating consumer products that are designed to be both environmentally friendly and sustainable. These products span various categories, including baby care, wellness, and household care. The company went public in 2021.

CEO Carla Vernón expressed dissatisfaction with these results and outlined the company’s commitment to implementing strategies to strengthen its position in 2024 and beyond. This included plans to introduce price increases in the second half of 2023, building on price adjustments made in 2022.

In the role of the new CFO, Dave Loretta will collaborate with The Honest Company’s executive leadership team to support the execution of its “Transformation Initiative,” which focuses on maximizing the brand, enhancing margins, and improving operational discipline, according to the company’s statement on Tuesday.

Loretta, 56, will receive an annual base salary of $475,000 and will be eligible for an annual discretionary bonus, with a target amount set at 70% of his base salary, contingent on the achievement of specific objectives and milestones, as outlined in a Securities and Exchange Commission filing by The Honest Company.

Dave Loretta joined Duluth Trading in 2017, two years after the company’s IPO, and has been instrumental in its growth from $400 million in revenue to $700 million, as noted in the release. He also held various leadership positions in finance at Nordstrom for over a decade.

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