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Allbirds Tumbles on Wider-Than-Estimated Loss as Costs Weigh

Published 02/24/2022, 07:40 AM
Updated 02/24/2022, 07:42 AM
© Reuters

By Dhirendra Tripathi

Investing.com – Allbirds , Inc. (NASDAQ:BIRD) stock plunged 11% in premarket trading Thursday on posting a quarterly loss that was wider than estimated, held back by costlier raw materials.

The company uses naturally derived materials like wool and other plant-based alternatives to make footwear and eco-friendly apparel that resonate with the young, particularly those in Silicon Valley.

Net revenue in the fourth quarter rose 23% to over $97 million, an all-time high. However, expenses related to logistics and opening of more retail stores weighed.

On an adjusted basis, it posted a quarterly loss of 9 cents per share compared to expectations of 8 cents.  

The company's view for first quarter sales of $60 million-$62 million is below estimates, according to Reuters, but its full-year forecast came in above expectations.

Annual net revenue is seen at $360 million at the center of its guidance range.

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