A woman walks past an Allbirds store in the Georgetown neighborhood of Washington, D.C., on Tuesday, Feb. 16, 2021.Al Drago | Bloomberg | Getty Images
A woman walks past an Allbirds store in the Georgetown neighborhood of Washington, D.C., on Tuesday, Feb. 16, 2021.
Al Drago | Bloomberg | Getty Images
Allbirds on Monday cut its financial forecast for the year and announced a number of efforts to cut costs as the sustainable shoe maker reported a wider quarterly loss compared with a year earlier.
The company citied a slowdown in consumer spending toward the end of June and said it has “dramatically” slowed the pace of corporate new hires and backfills for departing employees. It said it has cut its global corporate workforce by about 8%, or 23 people.
Chief Financial Officer Mike Bufano said the retailer anticipates any external headwinds pressuring consumer spending in the United States will persist in the back half of 2022. “As a result, we continue to take a cautious outlook,” he said in a statement.
Allbirds shares fell more than 10% in after-hours trading on the news.
Here’s how Allbirds did in its fiscal second quarter compared with what analysts were anticipating, based on Refinitiv estimates:
- Loss per share: 12 cents adjusted vs. 16 cents expected
- Revenue: $78.2 million vs. $77.8 million expected
Allbirds reported a net loss in the three-month period ended June 30 of $29.4 million, or 20 cents per share, compared with a loss of $7.6 million, or 14 cents a share, a year earlier. Excluding one-time items it lost 12 cents per share, better than the 16-cent loss that analysts were looking for.
Revenue grew 15% to $78.2 million compared with $67.9 million a year earlier. That topped estimates for sales of $77.8 million.
Allbirds reported both an increase in the number of orders and in average order value, which it said was due in part to price hikes amid inflation.
For the year, Allbirds is now calling for adjusted net revenue to between $305 million and $315 million. It previously forecast net revenue of $335 million to $345 million.
It sees adjusted gross profits amounting to between $150 million and $157.5 million, compared with prior guidance for gross profit of $170 million to $177.5 million.
This story is developing. Please check back for updates.
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