Allbirds reports 26% revenue boost in Q1 2022 results
Allbirds has reported its financial results for the first quarter the year ending 31 March 2022, revealing net revenues of £51 million, an increase of 26% against 2021.
Allbirds has attributed its revenue increase to "strong" consumer demand in the United States, although growth was negatively impacted by external headwinds, including COVID-19 restrictions in China, Russia’s invasion of Ukraine in Europe, and a strengthening U.S. dollar in some international markets.
- Net revenues of £51 million, up 26% to Q1 2021 and 49% against Q1 2020
- Gross profits increased 26% to £26.3 million against Q1 2021
- First quarter 2022 adjusted EBITDA loss of $12.2 million
- Physical retail channel sales grew 129% in the first quarter of 2022
- Four new stores opened in the quarter, ending the period with 39 locations around the world
- International net revenue increased 3% to £11.2 million compared to the first quarter of 2021
The sustainable shoe and apparel brand reported gross margins of 51.9% against 52% in Q1 2021, which it attributed to higher distribution centre and logistics costs, lower mix of international sales, and unfavourable foreign exchange rates, partially offset by higher margin products and improved pricing.
Outlook for 2022:
- Net revenue of $335 million to $345 million
- Gross profit of $170.0 million to $177.5 million
The business further announced that it was aiming to the reduce carbon footprint of its top 10 products by 6%, aligning with its 50% reduction goal by the end of 2025 and 95% by 2030.
Joey Zwillinger, co-Founder and Co-CEO of Allbirds commented on the results: "We are pleased to deliver strong first quarter performance across our key financial metrics, particularly against the backdrop of a volatile operating environment.
"While we are adopting a more conservative near-term outlook in light of the transitory external headwinds affecting our international business, we expect to deliver strong full year revenue growth of 21% to 24% in 2022. Importantly, we remain confident that our digital-savvy, omni-channel operating model will support continued growth and enable us to create meaningful value for our shareholders in the years ahead."