Spencer Platt/Getty Images
- Allbirds stock plummeted more than 19% Thursday within hours of a disappointing earnings report.
- The company reported a $101 million annual loss and a 13% quarterly drop in sales.
- Allbirds announced a four-part plan to restart profitability.
Allbirds stock on Thursday plummeted within an hour of a disappointing earnings report that included a $101 million annual loss and a 13% drop in quarterly sales.
Shares were down more than 19% in after-hours trading to $1.91, below a 52-week low of $2.14.
Sales increased 7% for the year to $298 million.
The “year came to a challenging close, with results below our expectations due to both execution and macro challenges,” cofounder and co-CEO Joey Zwillinger said, in a press release.
On a call with analysts, Zwillinger said the company’s foray into performance sneakers came up short, including the Flyer.
“It’s a great product,” he said. “We just found out that the customers that are really in our sweet spot aren’t resonating with core technical performance messaging.”
Earlier in the week, Wedbush analyst Tom Nikic downgraded the stock to neutral, titling his report with the line, “The birds flew south this winter.”
Nikic wrote that the company, known for its sustainable wool sneakers, “has a long potential runway for growth,” but its underperforming relative to peers picking up market share, such as On, Hoka, and HeyDude. He expects Allbirds sales to increase 10% this year, down from 13%.
On a call Thursday with analysts, Allbirds executives announced a sweeping four-part plan to restart profitability, including slowing the pace of store openings and work to “reignite product and brand.”
The company also announced former Nike Chief Operating Officer Eric Sprunk joined the company’s board and the appointment of Annie Mitchell as chief financial officer. She succeeds Mike Bufano, who will leave the company in mid-May. Mitchell previously worked as vice president of finance at Gymshark.
Allbirds also is ramping up a new Portland office that will drive much of the new product focus.