After going public earlier this month, Allbirds Inc. said Tuesday that new products and strong demand, especially in the U.S., gave a boost to third-quarter sales.
Revenue was strong across channels and geographies, with notable strength in U.S. physical retail, said Joey Zwillinger, Allbirds BIRD, co-founder and co-chief executive, in a statement. We saw strong consumer response in the quarter to our new product innovation, including our new Perform Apparel line. In the quarter, the company's net loss more than doubled, due to higher administrative and selling costs as it opened new stores, increased its headcount and went public. The company opened four stores in the third quarter and two more during the fourth quarter, according to its executives on the earnings call.
Allbirds shares fell by more than 2.2% in the regular session to close at $19.24 after rising more than 2.2% in the after-hours trading.
The seller of eco-friendly shoes that are popular with techies said third-quarter revenue rose to $62.7 million from $47.2 million in the year-ago quarter and increased 40% from the third quarter of 2019.
The company reported a net loss of $13.8 million, or 25 cents a share, compared to $7 million, or 13 cents a share, in the year-ago period. Adjusted Ebitda loss was $6.3 million, compared to an adjusted Ebitda loss of $3.8 million in the same period last year, taking stock-based compensation and other costs into account.
Analysts who were surveyed by FactSet predicted a net loss of $16.6 million, or 11 cents a share, on revenue of $62 million.
Chief Financial Officer Mike Bufano said on the call that Allbirds expects to grow by adding more apparel to its product offerings, opening new stores and expanding internationally. He said that the holiday season is typically Allbirds strongest, and he expressed optimism about the holiday season, which he said isn't specific for the fourth quarter.
The company expects full-year revenue of $270 million to $272 million, while analysts had expected $271.6 million. The adjusted Ebitda loss is expected to be between $17 million and $15 million, ahead of analysts expectation of $20.2 million.
San Francisco-based Allbirds stock has fallen more than 30% since it closed at $28.64 on November 3, the day of the company's initial public offering on the Nasdaq.
Allbirds has big growth potential, but competitors like Nike could be a speed bump, analysts say.