Allbirds shares fall as sneaker retailer reports widening losses, despite 23% jump in sales

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A woman walks past an Allbirds store in the Georgetown neighborhood of Washington, D.C., on Tuesday, Feb. 16, 2021.
Al Drago | Bloomberg | Getty Images

Allbirds shares tumbled in after-hours trading Wednesday as the sneaker retailer revealed mounting costs in the fourth quarter that weighed on profits and overshadowed double-digit revenue growth.

Retail store openings and bulking up its headcount led to higher expenses year over year, the company said.

Allbirds’ forecast for first-quarter revenue also fell short of analysts’ expectations, as the retailer anticipates greater growth later in the year rather than in the coming months. Allbirds’ full-year revenue forecast is more upbeat.

Shares were last falling around 5%. Allbirds’ stock has tumbled 60% since its first trade of $21.21 when it debuted on the Nasdaq last November. Shares hit an all-time intraday low of $7.98 on Wednesday.

Here’s how Allbirds did in its fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

  • Loss per share: 9 cents vs. a loss of 9 cents expected
  • Revenue: $97.2 million vs. $91.8 million expected

Its net loss for the three-month period ended Dec. 31 widened to $10.7 million, or 9 cents a share, from a loss of $9.4 million, or 18 cents per share, a year earlier. That was in line with estimates from analysts polled by Refinitiv.

Revenue grew 23% to $97.2 million from $79.3 million a year earlier, topping estimates for $91.8 million.

Allbirds said it was able to take advantage of strong consumer demand during the holidays in the United States, thanks in part to its inventory position entering the quarter.

Co-CEO and co-founder Joey Zwillinger said that over the holidays Allbirds had the two biggest sales days in its history, “highlighting the power of our omni-channel model.”

For 2022, Allbirds said it sees revenue ranging between $355 million and $365 million. Analysts were looking for $353 million. Adjusted losses, before interest, taxes, depreciation and amortization, are forecast in a range of $9 million to $13 million, including an estimated $8 million of public company costs.

First-quarter sales are seen ranging between $60 million and $62 million, short of the $63.7 million in revenue predicted by analysts on average.

Read the full financial press release from Allbirds here.

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