Business

Allbirds (BIRD) Reports Q3 2021 Profit

A woman walks past an Allbirds store in the Georgetown area of ​​Washington DC on Tuesday, February 16, 2021.

Al Drago | Bloomberg | Getty Images

Allbirds said Tuesday that its third-quarter revenues were up 33% year-over-year, while its losses increased as the cost of opening stores and listing its shares affected its results.

Allbirds fell about 6% in extended trading on this report, which was the first for a publicly traded company. Although its sales rose significantly, investors were reluctant to see further losses.

In the three months ended September 30, net loss increased to $ 13.8 million, or 25 cents a share, from a loss of $ 7 million, or 13 cents a share, a year earlier.

Sales rose 33% to $ 62.7 million from $ 47.2 million a year earlier. The eco-friendly shoe maker said its revenues grew 40% in two years.

Co-founder and CEO Joey Zwillinger said the company has seen notable success in its stores in the United States. Customers have also responded well to new product launches, including the recently debuted performance clothing line.

Allbirds is expanding its range of products beyond the wool sneakers for which it is best known. He now sells a variety of footwear, including running shoes, running shoes, and high-top sneakers. The company said it will continue to add more garments to its range, hoping to attract new customers to the Allbirds brand and convince existing customers to spend more on new items.

Allbirds is also investing in store growth to try and increase profitable sales. Since its inception, his business has grown primarily on the Internet. Roughly 89% of revenue came from e-commerce last year. But this comes with shipping costs, higher return rates, and other costs.

At the end of the quarter, the company opened 31 retail locations, including those outside the United States. Allbirds previously stated that it only “scratched the surface” with its usual footprint.

However, all of this investment comes at a cost, which is partly the reason Allbirds are still losing money.

Allbirds’ selling, general and administrative expenses were $ 33.0 million, or 52.6% of revenue, up from 42.5% in the same period in 2020. The costs associated with opening four new stores and hiring more employees contributed to the growth, the report said.

According to Albirds, in fiscal 2021, net revenues are expected to grow by 23-24% over last year, amounting to $ 270 to $ 272 million.

Allbirds is down slightly since the company went public on November 3. The stock closed Tuesday at $ 19.24, about 9% below its opening price of $ 21.21.

Find the Complete Allbirds Income Press Release here


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button