Sustainable shoe brand Allbirds this week reported global second-quarter net revenue increased 15% to $78.2 million compared with 2021. That’s also up 55% compared with 2020.
The company’s second-quarter revenues helped it surpass $1 billion in lifetime revenue. Joey Zwilinger, co-CEO and co-founder, said in an earnings conference call this week that it “is an incredible achievement for our brand, founded in 2015.” Allbirds ranks No. 340 in the Top 1000, Digital Commerce 360’s database of North American e-retailers by web sales.
Also in Q2, Zwilinger said, Allbirds “made the difficult but prudent decision to reduce global corporate headcount, by approximately 8%.”
He added that the cuts allow Allbirds to shift resources to invest more in areas that are critical for long-term growth including products, sourcing and brand marketing. The corporate job cuts come as Allbirds reports $29.37 million in net loss in its fiscal second quarter. That’s much higher than its $7.6 million net loss reported in Q2 2021. Net loss margin in Q2 2022 was 37.6%, more than triple the 11.2% in the same quarter last year.
The brand’s net loss in the first half of 2022 was $51.2 million. That compares with $21.1 million in the same period of 2021. Net loss margin was 36.4% compared to 18.0% in the first half of 2021.
Allbirds Q2 revenue
In the United States specifically, Allbirds net revenue in the second quarter grew 21% (compared with 2021) to $59.3 million. This comes as the brand opened five stores domestically in the quarter and nine since the end of 2021, ending the period with 32 brick-and-mortar locations. As such, its U.S. physical retail sales grew nearly 120% compared with 2021.
Adding retail stores helps create an omnichannel impact for the brand, Zwilinger said. “Up to 15% of the brand’s repeat customers are buying digitally,” he said.
“As we grow our store footprint, we continue to expand our base of valuable omnichannel customers,” he said.
Those omnichannel customers, he added, spend over 50% more than single-channel repeat customers.
Allbirds is also sold in Nordstrom, as of June 1. Nordstrom ranks No. 20 in the Top 1000.
“That’s a really big impact on the profitability profile of a single customer that we can acquire,” Zwilinger said. “And that’s really important for us driving the health of the business. And of course, these stores operate as billboards and generate awareness within the region that we’re in.”
Also in the second quarter, the brand also acquired more new ecommerce customers in London than in any other market outside of New York City, Zwilinger said. There, the brand is gaining traction among the 25-to-35 age group, he added.
First half of the year
Allbirds net revenue in the first six months of 2022 increased 20% from the same period in 2021. It grew to $140.9 million compared with $117.5 million. The revenue for the first six months was also 52% more than in the first half of 2020.
In 2022’s first half, net revenue in the United States increased 27% compared with the same period in 2021, to $108.2 million. The brand cited its retail store performance as the primary driver, as international net revenue was flat at $32.7 million compared with the first half of 2021.
As a certified B Corporation, Allbirds meets certain environmentally friendly and sustainability standards. B Corp Certification is a designation for businesses that meet high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials. That includes Allbirds reducing logistics costs in the U.S. by transitioning to automated distribution centers and a dedicated returns processor, the company announced in its earnings release.
It also said it’s accelerating scaling of its manufacturing base to reduce the carbon footprint and manufacturing cost of its products over time.
Tim Brown, co-CEO and co-founder, said the brand’s ability to bring new and sustainable materials to the market helps it meet consumer demand.
“We see it in our research every day — this increasing consumer demand for natural and sustainable materials,” Brown said.
One such material is its trademarked SwiftFoam, made with castor beans. The brand said SwiftFoam has a 20% lower carbon footprint than petroleum-based synthetic alternatives.
In its guidance for the rest of the year, Allbirds said it plans to reduce its carbon footprint 6% per unit for its top 10 products. It also plans to reduce carbon dioxide-equivalent emissions 50% by the end of 2025 and 95% by 2030.
For the fiscal second quarter ended June 30, 2022, Allbirds reported:
- Net revenue increased to $78.2 million. That’s up 15% compared to 2021, and up 55% compared to 2020.
- Net revenue in the United States grew to $59.3 million. That’s up 21% compared with 2021.
- U.S. physical retail channel sales grew nearly 120% compared to 2021. Allbirds opened five stores in the U.S. during the quarter and nine since the end of 2021.
- Gross profit decreased 26.1% to $28.2 million compared to 2021. Gross margin was 36.1% compared to 56.1% in 2021.
- $29.37 million in net loss in its fiscal second quarter. That’s much higher than its $7.6 million net loss reported in Q2 2021.
For the fiscal six months ended June 30, 2022, Allbirds reported:
- Net revenue increased 20% to $140.9 million compared to $117.5 million in the first half of 2021. It increased 52% compared to the first half of 2020.
- In the U.S., net revenue increased 27% to $108.2 million compared to the first half of 2021.
- Gross profit totaled $60.8 million compared with $63.9 million in the first half of 2021. Gross margin declined to 43.1% in the first half of 2022 compared with 54.4% in the same period in the prior year.
- The brand’s net loss in the first half of 2022 was $51.2 million. That compares with $21.1 million in the same period of 2021.
- Net loss margin was 36.4% compared with 18.0% in the first half of 2021.
Percentage changes may not align exactly with dollar figures due to rounding.
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