Allbirds loss widens as sales jump 23%; to begin wholesaling
Higher expenses, including logistics and store opening costs, weighed on Allbirds’ profit in the first quarter as it continued to expand its physical footprint.
The digitally native, sustainable footwear brand, which went public in November, reported a loss of $10.7 million, or $0.9 per share for the quarter ended Dec. 31, compared to a loss of $9.4 million, or $0.18 per share in the year-ago period. The loss was in line with analysts’ estimates.
Revenue increased 23% year-over-year to $97.2 million, Allbirds’ highest sales quarter to date, easily beating estimates for $91.8 million. Revenue rose 43% versus 2019.
“In the quarter, we saw strength across retail and digital channels, as well as geographies,” stated Allbirds co-founder and CEO Joey Zwillinger “The quarter culminated with a remarkable holiday season, which included the two biggest sales days in company history, highlighting the power of our omnichannel model. 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.”
On the company’s earnings call, Zwillinger said that, starting in the second quarter, the company will “selectively enter third-party” retailers. He said that the strategy is designed to build awareness and credibility for the brand and “not about growing near-term sales.” The move would represent Allbirds’ first real foray into wholesaling (apart from a previous limited-time pop-up initiative with Nordstrom).
Company executives on the call said that Allbirds will also continue to innovate, introducing new footwear and apparel. Last week, the company announced it was entering the resale space with the debut of its resale platform, Allbirds ReRun.
Allbirds more than doubled its footprint in 2021, opening 13 stores and ending the year with 35 locations globally (the count has since risen to 37). It plans to open 16 to 17 stores this year, with the majority in the U.S.
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In 2021, Allbirds said its digital business grew 16% and accounted for more than 80% of total revenue.
Allbirds’ forecast for first-quarter revenue missed analysts’ expectations. But its full-year revenue forecast was more upbeat as it expects growth later in the year.
For 2022, Allbirds expects revenue between $355 million and $365 million. Adjusted losses, before interest, taxes, depreciation and amortization, are forecast in a range of $9 million to $13 million, including an estimated $8 million of public company costs.
The company said it will be taking “deliberate pricing actions” in 2022 to fight inflation, which should add 1% to 3% to 2022 revenue growth.