A woman walks past an Allbirds store in the Georgetown neighborhood of Washington, DC, on Tuesday, February 16, 2021.
Drago | Bloomberg | Getty Images
Allbirds Shares tumbled in after-hours trading on Wednesday, as the athletic footwear retailer revealed higher costs in the fourth quarter weighed on earnings and outweighed double-digit revenue growth.
The company said the opening of retail stores and the increase in the number of employees led to higher expenses year on year.
Allbirds’ forecast for first-quarter revenue also missed analysts’ expectations, with the retailer anticipating more growth later in the year rather than in the coming months. Allbirds’ full-year earnings forecasts are more optimistic.
Shares last fell about 5%. Allbirds stock is down 60% since its first trade at $21.21 When it debuted on the NASDAQ last November. Shares hit an all-time low of $7.98 on Wednesday.
Here’s what Allbirds did in the fourth quarter compared to what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Loss per share: 9 cents versus an expected loss of 9 cents
- Revenue: $97.2 million vs. $91.8 million forecast
Its net loss for the three months ended December 31 widened to $10.7 million, or 9 cents a share, from a loss of $9.4 million, or 18 cents a share, a year earlier. That was in line with the estimates of analysts polled by Refinitiv.
Revenue grew 23% to $97.2 million from $79.3 million in the previous year, beating estimates of $91.8 million.
Allbirds said it was able to benefit from strong consumer demand during the holidays in the US, thanks in part to the inventory position it entered in the quarter.
Over the holidays, Allbirds had the biggest two days of sales in its history, co-CEO and co-founder Joey Zwillinger said, “highlighting the strength of the one-stop channel model.”
For 2022, Allbirds said it expects revenue between $355 million and $365 million. Analysts were looking for $353 million. Adjusted losses, before interest, tax, depreciation and amortization, are expected to be in the range of $9 million to $13 million, including an estimated $8 million in company general costs.
First-quarter sales are expected to be between $60 million and $62 million, less than the $63.7 million in revenue analysts, on average, had expected.
Read the full financial press release from Allbirds here.
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