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In the US, where net revenue grew 9.5 percent to $229.8 million, retail store sales were the primary driver of growth, while international net revenue remained relatively flat at $68 million, the company said in a press release.
Allbirds reported a 7.3 percent increase in net revenue to $297.8 million in fiscal 2012, driven by retail store sales in the US. However, gross profit declined to $129.6 million, and the company posted a net loss of $101.4 million. In Q1 FY23, Allbirds expects net revenue of between $45 million and $50 million and an adjusted EBITDA loss of $29 million to $26 million.
In FY22, international net revenue was nearly flat at $68 million compared to FY21, as the business was negatively impacted by external headwinds, including continued COVID-19 restrictions in China, lower discretionary consumer spending resulting from rising inflation, impact is included. The crisis in Ukraine, and unfavorable FX rates in Europe.
Allbirds’ selling, general and administrative expenses increased to $166.7 million, or 56 percent of net revenue, primarily driven by the opening of 23 new stores, increased workforce, and recurring public company operating costs.
The company reported a net loss of $101.4 million in FY22, compared to $45.4 million in the previous year, and an adjusted EBITDA loss of $60.4 million, compared to a loss of $11.7 million in FY21. Adjusted EBITDA margin declined to minus 20.3 per cent as compared to minus 4.2 per cent in FY21.
In the fourth quarter (Q4) of FY22, Allbirds’ net revenue declined by 13.4 percent to $84.2 million compared to the same period last year, while gross profit totaled $36.3 million, and gross margin declined to 43.1 percent. The company’s net loss was $24.9 million, and adjusted EBITDA was a loss of $12.5 million. Furthermore, the adjusted EBITDA margin declined to minus 14.9 per cent as compared to 0.4 per cent in Q4 FY21.
For Q1 FY23, Allbirds provided financial guidance targets of net revenue between $45 million and $50 million, a decline of 20 percent to 28 percent compared to Q1 FY2022, and adjusted EBITDA of $29 million to $26 million loss.
“2022 marked the end of our first full year as a public company and while we made significant progress, the year came to a challenging conclusion, with results below our expectations due to both execution and broader challenges. We need to drive performance improvements and are announcing a new transformation plan to rejuvenate the business with an emphasis on profitable growth.” Joy Zwillinger, Co-Founder and Co-CEO, “We are focused on four key areas to help Allbirds reconnect with our core consumers and meet new customers in a more capital efficient and profitable way.”
Fibre2Fashion News Desk (DP)