Allbirds Shares Tumble Amid Growing Losses

Allbirds Shares Tumble Amid Growing Losses

Allbirds (NASDAQ: BIRD) shares fell during after-hours trading Wednesday despite posting strong fourth-quarter earnings. According to the company, rising costs within the quarter impacted profits and obscured its double-digit revenue growth.

The footwear and apparel company reported an earnings loss of USD0.09 per share, in line with the expected USD0.09. Revenue rose 23%, amounting to USD97.2 Million, higher than analysts anticipated USD91.8 Million. Additionally, the company’s net loss for the three-month period grew to USD10.7 Million, up from the previous year’s loss of USD9.4 Million.

“We are pleased to report a strong finish to 2021, with Q4 representing our largest revenue quarter on record, headlining financial performance ahead of our guidance targets,” said Joey Zwillinger, Co-Founder and Co-CEO. “Our results reflect strong global demand for the Allbirds brand and best-in-class execution by our teams during a period of ongoing macro challenges. The quarter culminated with a remarkable holiday season, which included the two biggest sales days in company history, highlighting the power of our omni-channel model.”

The company now forecasts 2022 revenue to range anywhere from USD355 Million and USD365 Million, though analysts had only predicted revenue of USD353 Million.

According to the company, its digital business surged 16% from the previous year and resulted in more than 80% of total revenue. Furthermore, its physical retail business doubled Amid the opening of new locations. Allbirds now operates 37 retail stores worldwide.

“We are also proud to have made significant progress in 2021 under our Allbirds Flight Plan—our blueprint for reducing our already-low product emissions by 50% by the end of 2025 and 95% by 2030. For the year, we reduced our carbon footprint per unit by 14% compared to 2020,” Zwillinger said.

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