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United States drives Allbirds sales in the first quarter

Carmen Toraya by Carmen Toraya
mayo 17, 2022
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Allbirds has announced a 26% increase in total revenues in the first quarter, thanks to double-digit growth in the United States, which offset the drop in sales in the international market.

 

The San Francisco-based company said total revenue reached $62.8 million in the first quarter ended March 31, up from $49.6 million in the year-ago quarter.

Sales were boosted by strong consumer demand in the U.S., where net revenues rose 35% to $48.9 million, «reflecting growth in our digital and physical sales channels, new product launches and upgrades, and improved pricing,» the company said.

International net revenues rose 3% to $13.8 million, held back by coronavirus restrictions in China, the Russian invasion of Ukraine and the strengthening of the U.S. dollar in some international markets, the company added.

Sales in the physical retail channel grew 129% in the first quarter, with the opening of four new stores during the quarter and 17 since the first quarter of 2021; the company ended the period with 39 stores worldwide.

The sustainable footwear and apparel brand posted a net loss of $21.9 million, widening from $13.5 million in the same quarter last year.

«Issues around the world since our last earnings report, including Russia’s invasion of Ukraine and coronavirus restrictions in China, have impacted our international business results in the first quarter and this impact is expected to continue through the remainder of 2022,» said Joey Zwillinger, co-founder and CEO.

«These factors were more than offset by excellent results from our U.S. business, which achieved net revenue growth of 35 % in the first quarter. Net revenue growth for the total business accelerated again from one and two years ago in the quarter, up 26% and 49%, respectively,» he added.

Looking ahead, Allbirds expects full-year 2022 net revenues to be between $335 million and $345 million, representing growth of 21% to 24%.

«We believe our teams continue to perform well despite the current challenges and we are focused on driving top line through our core growth pillars: product innovation, growing our store portfolio and international expansion. Those pillars of growth highlighted in 2022 constitute the most exciting product roadmap in our history,» concluded Zwillinger.

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