Allbirds forecasts 15 to 22 percent decline in Q4 revenue

Allbirds, Inc. net revenue decreased 21.2 percent to 57.2 million dollars compared to the third quarter of 2022 and decreased 8.7 percent compared to the third quarter of 2021.

Net revenue in the first nine months decreased 14.8 percent to 182.1 million dollars and increased 1 percent compared to the first nine months of 2021.

For the fourth quarter, the company forecasts net revenue of 66 million dollars to 72 million dollars, a decrease of 22 percent to 15 percent and adjusted EBITDA loss of 26 million dollars to 23 million dollars.

“Our third quarter results reflect another quarter of solid execution under our Strategic Transformation Plan. We made important progress on our key benchmarks of inventory reduction, operating cash use, and cost control, resulting in adjusted EBITDA ahead of our expectations,” said Joey Zwillinger, Allbirds co-founder and CEO.

The company’s gross profit decreased to 24.9 million dollars in the third quarter and gross margin declined to 43.5 percent. Net loss widened to 31.6 million dollars, adjusted EBITDA loss increased to 19 million dollars and adjusted EBITDA margin declined to negative 33.1 percent.

Gross profit in the first nine months dropped to 76.9 million dollars, while gross margin declined to 42.2 percent. Net loss increased to 95.7 million dollars, adjusted EBITDA loss rose to 58.9 million dollars and adjusted EBITDA margin declined to 32.4 percent.