What happened
Shares of Allbirds (BIRD -1.54%) sank 36.2% in February, according to data from S&P Global Market Intelligence. The footwear specialist's share price plummeted after its fourth-quarter report that arrived with guidance that fell short of the market's expectations.
Allbirds published its fourth-quarter results on Feb. 23, posting a loss per share of $0.09 on revenue of $97.2 million in the period. The loss was in line with the market's expectations, but sales actually came in significantly ahead of the average analyst estimate's call for revenue of $92.28 million. Despite the topline beat, the eco-friendly sneaker company's guidance underwhelmed the market, and the earnings release was followed by a slew of downward price-target revisions from analysts.
Image source: Getty Images.
So what
Allbirds had its initial public offering last November, and the company's share price is now down roughly 67% from market close on the day of its public debut.
The company closed out 2021 with sales of $277.5 million, which was up 27% year over year and 43% compared to 2019. Physical-channel sales were up 112% compared to 2020 as pandemic-related challenges eased, and the business' gross margin of 52.9% last year was up 145 basis points.
While the company's fourth-quarter and full-year results were actually quite solid in many respects, investors are becoming more risk-averse, and guidance for another loss in the current fiscal year prompted steep sell-offs last month.
Now what
Allbirds stock has continued to sink early in March's trading. The company's share price is down roughly 16.8% in the month so far.
BIRD data by YCharts.
Allbirds is guiding for sales in the current quarter to come in between $60 million and $62 million, suggesting roughly 23% growth year over year at the midpoint of the target. Management also expects a non-GAAP (adjusted) EBITDA loss between $11 million and $13 million in the period.
For the full year, Allbirds expects to post an adjusted EBITDA loss between $9 million and $13 million on sales between $355 million and $365 million. Hitting the midpoint of its sales target would have the company growing sales 30% compared to 2021.
After recent sell-offs, Allbirds now has a market capitalization of roughly $931 million and is valued at approximately 2.6 times this year's expected sales.
