Allbirds Q1 sales boosted by U.S. market, international growth slows
Allbirds announced last week total revenues for its first quarter increased 26%, on the back of double-digit growth in the U.S. which offset sales lags in its international market.
The San Francisco-based company said total revenues reached $62.8 million for the first quarter ending March 31, compared to $49.6 million in the prior-year quarter.
Sales lifted on strong consumer demand in the United States, where net revenue increased 35% to $48.9 million, "reflecting growth in our digital and physical retail channels, new product launches and refreshes, and improved pricing," said the company.
International net revenue increased 3% to $13.8 million -- slowed by Covid-19 restrictions in China, Russia’s invasion of Ukraine in Europe, and a strengthening U.S. dollar in some international markets, added the company.
Physical retail channel sales grew 129% in the first quarter, with four new stores opening during the quarter and 17 since the first quarter of 2021; the company ending the period with 39 locations around the world.
The sustainable footwear and apparel company recorded a net loss of $21.9 million, widening from $13.5 million in the same quarter a year earlier.
“Tumult around the world since our last earnings report, including Russia’s invasion of Ukraine and China’s Covid-19 restrictions, impacted the performance of our international business in Q1 and is expected to persist for the remainder of 2022," said Joey Zwillinger, co-founder and co-CEO.
"These factors were more than offset by excellent performance in our U.S. business, which delivered net revenue growth of 35% in the first quarter. Net revenue growth for the total business again accelerated on both a one- and two-year basis in the quarter, up 26% and 49%, respectively.”
Looking ahead, Allbirds said it expects full year 2022 net revenue to fall between $335 million and $345 million, representing growth in the range of 21% to 24%.
“We believe our teams are continuing to execute well amidst the external headwinds and we remain focused on driving the topline through our core growth pillars of delivering product innovation, growing our store portfolio and expanding internationally, with those growth pillars highlighted in 2022 by what we believe is the most exciting new product roadmap in the history of the company," concluded Zwillinger.
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