Allbirds stock falls by double-digit percentage points as losses widen

Allbirds (bird), an eco-friendly footwear startup, saw a drop of more than 14% Wednesday morning after the company’s latest earnings report.

Although quarterly sales of $62.7 million (33% gain) slightly exceeded The FactSet consensus was $62.0 million, and investors were clearly disappointed by the broader losses. Allbirds’ share loss 25 cents, well above the consensus loss of 11 cents a share.

Despite achieving significant revenue growth, higher costs for the Silicon Valley startup expanded the loss to $13.8 million for the third quarter, from a loss of $7 million a year earlier.

Source: Yahoo Finance

Source: Yahoo Finance

Allbirds debuted in early November, closing at $28.89 a share. Recently, the company expanded. The company opened Two new sites in Cambridge, Massachusetts, and Oakbrook, Illinois, in October, and now has more than 30 locations across North America, Asia and Europe.

The company wrote in IPO prospectus. “Based on the performance of our stores prior to COVID-19, we believe that our new stores will also be very profitable, have attractive payback periods, serve as good capital investments, and be well positioned to benefit from the physical retail recovery from the pandemic.”

WELLINGTON, New Zealand - NOVEMBER 6: Prime Minister Jacinda Ardern wears a pair of Allbirds shoes after addressing the Labor Party's annual conference at Labor Party Headquarters on November 6, 2021 in Wellington, New Zealand.  Prime Minister Jacinda Ardern announced an increase in the family tax credit due to the impact of COVID on families, along with an increase in the cost of living, so that 346,000 families would be better off averaging $20 a week.  The Labor Party's annual conference takes place from November 5-6.  (Photo by Hagen Hopkins/Getty Images)

WELLINGTON, New Zealand – NOVEMBER 6: Prime Minister Jacinda Ardern wears a pair of Allbirds shoes after addressing the Labor Party’s annual conference at Labor Party Headquarters on November 6, 2021 in Wellington, New Zealand. Prime Minister Jacinda Ardern announced an increase in the family tax credit due to the impact of COVID on families, along with an increase in the cost of living, so that 346,000 families would be better off averaging $20 a week. The Labor Party’s annual conference takes place from November 5-6. (Photo by Hagen Hopkins/Getty Images)

Higher levels of investment were reflected in higher costs. Selling, general and administrative expenses accounted for more than half of the company’s revenue, accounting for 52.6% of revenue, compared to 42.5% of revenue for the third quarter of 2020.

Allbirds was founded in 2016 by Tim Brown, a former soccer player, and Joey Zwillinger, a biotech engineer. Startup triggered More than 7 million dollars In investments from a funding round led by venture capital firm Maveron.

The New Zealand American shoe company has become famous in the industry for its developmentwool runnerMade of premium merino wool and castor oil. Since then, Allbird has developed many other shoes in similar styles, all of which are used in the claim Environmentally sourced materials and processes.

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