Allbirds reports net revenue growth of 33% in Q3
Sustainable footwear and apparel brand Allbirds has today reported financial results for the third quarter of 2021 ending 30 September, highlighting a net revenue growth of 33% to $62.7 million compared to the third quarter of 2020.
The increase in revenues can be primarily attributable to robust consumer demand in the United States and a strong response to new footwear and performance apparel product launches. Net revenue in the United States increased 42% to $47.7 million and international net revenue increased 10% to $15.0 million.
Gross profit totalled $33.9 million compared to $25 million in the third quarter of 2020. Sales, general and administrative expenses were $33.0 million (equal to 52.6% of revenue), compared to $20.1 million for the same period in 2020, with the increase primarily driven by the expenses of opening of four new stores and the operational expenses for 10 additional stores.
Joey Zwillinger, Co-Founder and Co-CEO, said: "We are pleased to deliver strong third quarter performance, which reflects solid execution by our teams and robust global demand for the Allbirds brand. Revenue was strong across channels and geographies, growing 33% year over year, with notable strength in U.S. physical retail. Importantly, we saw strong consumer response in the quarter to our new product innovation, including our new Perform Apparel line.”
“We’re at the forefront of a generational change in consumer values and purchase behaviours, led by our mission to make better things in a better way—which means we’re aligning our purpose of reversing climate change with our product quality and financial outcomes. Looking ahead, we believe Allbirds is uniquely positioned in an exceptionally large and growing market. As we continue to execute our strategic plan, we are focused on accelerating growth, creating value for our shareholders and building for a multi-decade journey.”
Adjusted EBITDA loss in the third quarter of 2021 was $6.3 million compared to $3.8 million in the third quarter of 2020.
Year-to-date net revenue in the third quarter of 2021 increased 29% to $180.3 million compared to $140 million in the nine months ending 30 September 2020 and increased 43% compared to the same period in 2019.
Allbirds also confirmed it is aiming for net revenues of $270 million to $272 million in 2021, representing growth in the range of 23% to 24% versus fiscal 2020.
Mike Bufano, Chief Financial Officer at Allbirds, added: “We achieved strong top line growth, gross margin expansion, and improved marketing efficiency in the quarter. We feel confident about how the business is positioned and our ability to navigate what continues to be a dynamic macro environment. Through careful investments, we have built a solid infrastructure across people, supply chain and technology that we believe positions us to profitably grow the business and create shareholder value.”