By Davit Kirakosyan
Allbirds (NASDAQ:BIRD) shares plunged more than 19% after-hours following the company’s reported Q4 results, with EPS of ($0.17) coming in worse than the consensus estimate of ($0.12). Revenue fell 13.4% year-over-year to $84.2 million, missing the consensus estimate of $96.89M. This decrease is primarily attributable to a decrease in the number of orders, and an estimated $3.2M negative impact from foreign exchange.
“2022 marked the end of our first full year as a public company and while we made important progress, the year came to a challenging close, with results below our expectations due to both execution and macro challenges. We need to improve performance, and are announcing a new transformation plan to reinvigorate the business with an emphasis on profitable growth,” said Joey Zwillinger, co-founder and co-CEO.
The transformation plan focuses on these four key areas: (1) Reignite product and brand, (2) optimize U.S. stores and slow pace of openings, (3) evaluate transition of international go-to-market strategy, (4) improve cost savings and capital efficiency.
The company expects Q1/23 revenue in the range of $45M-$50M (down 20%-28% year-over-year), below the consensus estimate of $67.1M.
Furthermore, the company announced the appointment of Annie Mitchell as CFO, effective April 24, 2023. She will succeed Mike Bufano, who will remain with the company through mid-May to ensure a smooth transition.