Allbirds reports 23% revenue rise in Q4
Global lifestyle brand Allbirds reported that its fourth quarter in 2021 was its strongest to date, with net revenues up 23% to £72.4 million compared to the fourth quarter of 2020, and up 43% against the same period in 2019.
Gross profit in the fourth quarter of 2021 was £36.3 million compared to £29.3 million in the fourth quarter of 2020.
In the full full year ending 31 December, 2021 Allbirds reported revenues of £231.6 million, a 27% increase compared to 2020, and a 43% increase against 2019. Strong consumers demand drove net revenue in international markets to £50.4 million, a 29% increase compared to the full year 2020.
Gross profits for the full year were also up by 30% to £109.2 million, with gross margin expanding 145 basis points to 52.9%. The brand said the increase in gross margin primarily reflected favourable channel and geographic mix, sales of higher gross margin products, and cost savings, which were partially offset by higher distribution centre and logistics costs.
Allbirds adjusted revenue before interest and tax (EBITDA) loss for the full year 2021 was £8.7 million, an improvement of 24% compared to 2020.
The sustainable footwear and clothing retailer opened 13 stores during the year and now counts 35 locations globally.
It had also reduced the carbon footprint of its top 10 products by 14% in 2021 and said that in 2022 it was planning to meet its carbon footprint reduction target of 6% for its top 10 products.
Allbirds forecast its revenues for the full year 2022 to be between £264.3 million and £271.9 million, representing growth in the range of 28% to 32% versus fiscal year 2021.
Joey Zwillinger, Co-Founder and Co-CEO, said: “We are pleased to report a strong finish to 2021. Our results reflect strong global demand for the Allbirds brand and best-in-class execution by our teams during a period of ongoing macro challenges. In the quarter, we saw strength across retail and digital channels, as well as geographies. The quarter culminated with a remarkable holiday season, which included the two biggest sales days in company history, highlighting the power of our omni-channel model.
“We are also proud to have made significant progress in 2021 under our Allbirds Flight Plan—our blueprint for reducing our already-low product emissions by 50% by the end of 2025 and 95% by 2030. For the year, we reduced our carbon footprint per unit by 14% compared to 2020. This is particularly gratifying as we continue to prioritise creating better products in a better way. We see our 2022 product roadmap as our strongest yet. Importantly, we believe that our innovation engine, continued retail store expansion, and increasing international presence will continue to drive an accelerating topline growth rate in 2022, helping us march down the path towards durable growth and our medium-term profitability targets, while furthering our goal of combating climate change.”
Mike Bufano, Chief Financial Officer, added: “Our strong product pipeline, authentic purpose-led brand, deep connection with our customers, and omni-channel distribution model all came together to deliver fourth quarter net revenue, gross profit, and adjusted EBITDA performance above our guidance targets. The strength of our fourth quarter and full year results provides us with continued confidence in our medium-term financial targets of 20-30% net revenue growth, 60%+ gross margin, and mid- to high-teens adjusted EBITDA margin.”