Allbirds (BIRD) reports Q4 2021 results in line with estimates

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.

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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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