Allbirds beat expectations and touted a sales boost, but shares fell after hours
Reporting earnings for the first time since it was announced earlier this month, Allbirds Inc. said on Tuesday that new products and strong demand, especially in the US, boosted the company’s third-quarter sales.
Joey Zwillinger, Allbirds, said: “Strong revenue across channels and geographies, up 33% year-over-year, with notable strength in US physical retail, ” Joey Zwillinger, Allbirds
BIRD,
co-founder and co-CEO, in a statement. “Importantly, we saw a strong consumer response during the quarter to our new product innovation, including our new Performance Apparel line.”
However, the company’s net loss more than doubled during the quarter, driven by higher selling and administrative expenses as the company opened new stores, increased headcount and listed shares. The company opened 4 stores in the third quarter and added two more in the fourth quarter so far, its executives said during the earnings call.
Shares of Allbirds were trading about 6% lower a few hours from 6 p.m. ET, after rising more than 2.2% in normal trading to close at $19.24.
The eco-friendly shoe seller popular with the tech world says third-quarter revenue jumped to $62.7 million from $47.2 million in the previous quarter and up 40% from Q3 2019. .
The company reported a net loss of $13.8 million, or 25 cents a share, compared with $7 million, or 13 cents a share, for the period a year ago. Taking into account stock-based compensation and other expenses, Ebitda’s adjusted loss was $6.3 million, compared with Ebitda’s adjusted loss of $3.8 million for the same period last year. last.
Analysts surveyed by FactSet had forecast a net loss of $16.6 million, or 11 cents a share, on revenue of $62 million.
Chief Financial Officer Mike Bufano said Allbirds will continue to grow by adding more clothing to its product offerings, opening new stores and expanding internationally. He did not offer specific guidance for the fourth quarter, but he expressed optimism about the holiday season, which he said is often the Allbirds’ strongest season.
The company expects full-year revenue of $270 to $272 million, while analysts expect $271.6 million. The company expected Ebitda adjusted losses of $17 million to $15 million, ahead of analysts’ expectations of $20.2 million.
Shares of San Francisco-based Allbirds have fallen more than 30% since closing at $28.64 on November 3, the day the company went public on the Nasdaq.
See: Allbirds has huge growth potential but competitors like Nike could be a speed bump, analysts say
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