Allbirds looking to fly sustainably – but still working on how to do it and make a profit at the same time.
In its first quarterly report as a public company, the popular sneakers company posted a third-quarter net loss of $13.8 million, or 25 cents a share. , as they have to pay for new stores, additional staff and related costs November IPO. Red ink compared to a loss of $7 million, or 13 cents, the year before.
Revenue for the quarter ended September 30 was stronger, growing to $62.7 million from $47.2 million a year earlier.
Investors were a bit wary and sent the company’s stock down 6.4% to $18 in after-hours trading following the update.
Joey Zwillinger, co-founder and co-CEO, said: “Revenue grew strongly across channels and geographies, up 33% year-over-year, with the remarkable physical strength of America. retail. More importantly, we saw strong consumer response during the quarter to our new product innovation, including our new line of Performance Apparel. ”
But apparently Zwillinger & Co. looking a quarter farther.
“We are at the forefront of generational change in consumer values and purchasing behaviour, driven by our mission to create better things in a better way – that is, We are aligning our climate change reversal goals with the quality of our products and financial results,” said Zwillinger. “Looking ahead, we believe Allbirds has a unique position in a particularly large and growing market. As we continue to execute our strategic plan, we focus on driving growth, creating value for our shareholders, and building for a multi-sectoral journey. ”
Zwillinger and co-CEO and co-founder Tim Brown still keep substantial control over the company because their class B shares have 10 times more voting rights than the class A shares sold to the public. (Allbirds raised $252.8 million in the offering).
But company executives have been careful to make it clear that Allbirds is working to drive growth and profitability while staying true to its sustainability mission.
Zwillinger says the company has served more than 4 million customers since its launch in 2016 and built a vertical manufacturing model with both a digital heritage and a growing storefront.
“Now, we just need to reach more customers,” he said. And part of that means meeting more people IRL.
Allbirds opens first store in 2017 and currently has 35 doors, of which 23 are in the US
“Every store Omnichannel customers are the brand’s strongest customers, spending 1.5 times more than digital-only customers, Zwillinger says.
The co-CEO laid out the company’s growth plan based on store growth, internationalization, and product innovation.
That last category includes clothing, which Allbirds is slowly rolling out, has begun its lifestyle proposition in shoes. Clothing is expected to represent about 10% of the business for 2021.
This year, the company plans to post net sales of between $270 million and $272 million, representing a 23 to 24 percent growth — or 39 to 40 percent expansion since before the pandemic in 2019.
More from WWD:
https://wwd.com/business-news/financial/allbirds-third-quarter-ipo-joey-zwillinger-co-ceo-1235006590/ Allbirds Looks Losing In First Quarterly Report – WWD