Allbirds sales, earnings exceed expectations; U.S. physical retail pays off

By

Benjamin Fitzgerald

Published
Nov 10, 2022

U.S. sustainable footwear company Allbirds Inc. announced on Tuesday financial results for the third quarter exceeded expectations, with sales up 16% to $72.7 million year-over-year and up 54% compared to 2020. 

The San Francisco-based company said ​the sales increase for the quarter ending September 30 was primarily attributable to a lift in the number of orders, driven by retail store sales, and an increase in average order value. 

Allbirds' U.S. physical retail channel sales grew 53%, compared to 2021, as the company opened six domestic stores during the quarter, ending the period with 38 locations in the United States.

Net loss was $25.2 million, compared to $13.8 million in the third quarter of 2021, while adjusted EBITDA was a loss of $12.7 million, compared to a loss of $6.3 million.

"We delivered a strong quarter in what remains a highly dynamic operating environment. I am proud that we exceeded our Q3 adjusted revenue and adjusted EBITDA guidance targets while also delivering on our sustainability goals,” said Joey Zwillinger, co-founder and co-CEO.

Following the quarterly lift, revenues for the first nine months increased 18.5% to $213.6 million, while net loss was $76.5 million, compared to $34.9 million in the first nine months of 2021.

“Looking ahead to year end and 2023, we continue to expect macro headwinds to persist but believe that our brand, our growth strategy, and simplification initiatives position us well to emerge strongly from this period," added Zwillinger.

The company reaffirmed its guidance targets for full-year 2022. It predicts ​adjusted net revenue of $305 million to $315 million, representing growth in the range of 10% to 14%, and ​an adjusted EBITDA loss of $42.5 million to $37.5 million, including an estimated $8 million of recurring public company costs.