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BIRD Stock Declines 6% after Allbirds Announces Widened Net Loss in Its First-Ever Quarterly Result

UTC by Ibukun Ogundare · 3 min read
BIRD Stock Declines 6% after Allbirds Announces Widened Net Loss in Its First-Ever Quarterly Result
Photo: Nasdaq / Twitter

The company’s CEO and co-founder Joey Zwillinger revealed that Allbirds got some strength across its stores in the US. Also, the CEO said shoppers responded positively to the launch of new products.

New Zealand-American footwear and apparel company Allbirds Inc (NASDAQ: BIRD) has announced its first-ever quarterly result following its market debut. Despite seeing a 33% quarterly gain in sales, the result says Allbirds recorded a wider loss. According to the quarterly result announced on the 30th of November, the shoemaker had a mix of both increases and declines. Allbirds insisted that the expenses of opening new stores and listing its stock affected its performance for the past quarter.

Allbirds Reveals First-Ever Quarterly Results

While its sales surged, investors seem displeased with the loss as Allbirds stock dropped 6% in extended trading after it announced its quarterly result. The shoemaker saw its net loss widen to $13.8 million, or 25 cents per share. Formerly, the company’s net loss was 47 million, or 13 cents per share in the year before.

However, sales grew by 33% from $47.2 million to $62.7 million year-over-year. In addition, Allbirds added that its revenue surged 40% on a two-year basis. The company’s CEO and co-founder Joey Zwillinger revealed that Allbirds got some strength across its stores in the US. Also, the CEO said shoppers responded positively to the launch of new products. In August, the company unveiled its activewear line, ahead of its IPO.

Over time, Allbirds has been gradually expanding its products beyond the wool sneakers popularly known for. Now, the company makes a variety of footwear, including running shoes, trail shoes, and high tops. Moving forward, Allbirds said it would continue to launch more apparent items, which in turn expands its customer base. To up its profitable sales, Allbirds has majorly grown its online presence since it was founded. About 89% of its total revenue was as a result of e-commerce in 2020.

For the three months ended on the 30th of September, Allbirds has 31 retail locations home and abroad. The investments in its online market, physical stores attract expenses, which is why Allbirds’ net loss is expanding. According to the company, the opening of new stores and hiring of more staff contributed to the increase in expenses.

Allbirds Expenditures

For selling, general, and administrative expenses, Allbirds expended $33 million or 52.6% revenue. In contrast, the shoemaker spent 42.5% of revenue for the same period in the previous year.

Speaking in the quarterly results announcement, Allbirds chief financial officer Mike Bufano said:

“We feel confident about how the business is positioned and our ability to navigate what continues to be a dynamic macro environment. Through careful investments, we have built a solid infrastructure across people, supply chain and technology that we believe positions us to profitably grow the business and create shareholder value.”

Currently, BIRD is down 1.51% to $18.95 at the pre-market trading. The shoemaker’s stock has lost over 33% since IPO in early November and has additionally declined 5.17% in the last five days.

Business News, Market News, News, Stocks, Wall Street
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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