Allbirds Posts a Wider Loss for the Third Quarter

Eco-friendly shoemaker Allbirds reported its third quarter financial results on Tuesday, with the company posting a wider loss despite seeing a 33% gain in quarterly sales.

Losses had widened as the cost of opening stores and listing its stock weighed on its results. The company ended the quarter with 31 retail locations, including those outside the U.S. and has previously said it’s only “scratched the surface” with its brick-and-mortar footprint.

Allbirds’ shares had dropped roughly 6% in extended trading as Wall Street digested the report, the very first for the company as a public company.

For the three months ended Sept. 30, the company reported that net losses widened to $13.8 million, or 25 cents per share, from a loss of $7 million, or 13 cents a share, a year earlier.
Sales grew 33% to $62.7 million from $47.2 million a year ago. Allbirds said its revenue was up 40% on a two-year basis.

Allbirds’ selling, general and administrative expenses were $33.0 million, or 52.6% of revenue compared with 42.5% of revenue for the same period in 2020. Costs related with four new store openings and hiring more employees contributed to the uptick, it said.

Looking ahead for fiscal 2021, Allbirds said net revenue should be up anywhere between 23% and 24% from year-ago levels, amounting to between $270 million and $272 million.

The sustainable shoemaker’s co-founder and CEO Joey Zwillinger said the company saw notable strength in its stores in the United States. Shoppers also responded well to product launches, including a recently debuted performance apparel line.

Allbirds’ business has grown primarily online since its inception. Roughly 89% of its revenue came from e-commerce in 2020. But that comes with transportation costs, higher return rates and other expenses.

Allbirds went public on Nov. 3.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.