A woman walks past an Allbirds store in the Georgetown neighborhood of Washington, DC, on Tuesday, February 16, 2021.
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all the birds on Monday it cut its financial forecast for the year and announced a series of efforts to cut costs, as the sustainable shoemaker reported a broader quarterly loss compared to a year earlier.
The company cited a slowdown in consumer spending toward the end of June and said the pace of new corporate hires and replenishments for departing employees has slowed “dramatically.” 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 to persist into the second half of 2022. “As a result, we continue to take a cautious outlook,” he said in a statement. a statement.
Allbirds shares fell more than 13% in after-hours trading on the news. Shares had fallen more than 60% year-to-date through Monday’s market close, pushing Allbirds’ market capitalization to about $842 million.
That’s how Allbirds made in its second fiscal quarter compared to what analysts anticipated, according to 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 for the three-month period ended June 30 of $29.4 million, or 20 cents a share, compared with a loss of $7.6 million, or 14 cents a share, a year earlier. Excluding one-off items, it lost 12 cents a share, better than the 16-cent loss that analysts were looking for.
Revenue grew 15% to $78.2 million compared to $67.9 million a year earlier. That beat sales estimates of $77.8 million.
Allbirds reported both an increase in the number of orders and the average order value, which it said was due in part to price increases amid inflation. The company is best known for its slip-on wool loafers, but it also entered the clothing business during the pandemic and has been releasing a variety of shoes, including running ones.
Sales in the United States grew 21% from year-earlier levels, while it said international revenue was flat due to ongoing Covid-related restrictions in China and the war in Ukraine.
retailers of walmart a Gap in recent weeks they have cut their expectations for future sales and earnings as companies try to gauge how consumers are responding to the highest inflation in 40 years. Companies say low-income households have been particularly pressured by higher prices and have started to tighten their budgets for discretionary items, including clothing.
For the year, the Allbirds are now asking for adjusted net income between $305 million and $315 million. It previously forecast net income of $335 million to $345 million.
It sees adjusted gross earnings amounting to between $150 million and $157.5 million, compared to previous gross earnings guidance of $170 million to $177.5 million.
And you’re anticipating adjusted EBITDA loss of $42.5 million to $37.5 million, compared to a previous forecast of a loss of $25 million to $21 million.
Along with the slower pace of hiring, Allbirds said it will look to cut logistics costs in the United States by transitioning to automated distribution centers and a dedicated returns processor. The company also hopes to speed up the expansion of its own manufacturing base to lower product costs over time.
Bufano said the changes are expected to save the company between $13 million and $15 million on an annual basis starting in 2023.
“We will reinvest some of these savings to drive the brand forward through product innovation, marketing, retail stores and partnerships with leading third parties,” he said.
Allbirds, which went public at a valuation of more than $4 billion last November, recently signed a deal sell your products in Nordstromthe department stores of . The retailer has also been opening physical stores to reach more consumers, ending the second quarter with 46 locations worldwide.