Footwear retailer Allbirds (NASDAQ:BIRD) on Thursday unveiled a broad overhaul of its strategy and an executive shake-up after failing to post year-over-year quarterly sales growth for the first time in its history.
Shares of Allbirds plummeted during off-hours trading. As of Thursday’s close, shares of the company have fallen 3.5% so far this year to $2.36, giving it a market value of $352.5 million.
The retailer, which had been in the process of a broad brick-and-mortar expansion that it’s now winding down, was candid about its failures. The company is betting its new strategy will reignite growth, improve capital efficiency and drive profitability in the coming years.
The company said its most recent quarter was hurt by a “disappointing” holiday season. Results fell short of Wall Street’s expectations on the top and bottom lines.
Allbirds posted a fourth-quarter loss per share: 17 cents vs. 12 cents expected, on revenue of $84.18 million vs. $96.8 million expected
For the three months ended Dec. 31, Allbirds net loss widened to $24.87 million, or 17 cents a share, from $10.44 million, or 9 cents a share, a year earlier. Sales were $84.18 million, down more than 13% from $97.22 million year over year.
While full-year net revenue increased by 7% to $297.77 million, Allbirds’ net losses in its first full year as a public company ballooned to $101.35 million, more than double the $45.37 million in losses it recorded in 2021.
Allbirds stock tumbled 80 cents, or 33.7%, to $1.56.
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