Footwear brand attributes revenue decline to lower selling prices and foreign exchange impact
- Allbirds reports a 9.8% drop in Q2 revenues to $70.5m (£55.3m)
- Net loss for the quarter was $28.9m (£22.7m)
- Lower inventory write-downs, lower freight and logistics costs, and higher international sales partially offset the decline
- Gross profit increased to $30.1m (£23.6m) from $28.2m (£22.1m) in the previous year
- Continued progress on strategic transformation plan aimed at reigniting growth and improving capital efficiency
Allbirds, the footwear group, has reported a 9.8% drop in revenues for Q2, reaching $70.5m (£55.3m), with a net loss of $28.9m (£22.7m). The decline was attributed to a fall in average selling price due to promotional activity and an estimated negative impact of $700k (£549k) from foreign exchange. However, the company’s gross profit increased to $30.1m (£23.6m), up from $28.2m (£22.1m) in the previous year, thanks to lower inventory write-downs, reduced freight and logistics costs, and a higher mix of international sales. Despite these challenges, Allbirds has made progress on its strategic transformation plan, which focuses on reigniting growth, improving capital efficiency, and driving improved profitability. Co-founder and CEO Joey Zwillinger stated that the company is making solid progress in reducing inventory levels, lowering operating cash use, and exercising cost control.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Allbirds’ financial performance, including revenue decline, net loss, gross profit, and progress on their strategic transformation plan. It also includes a quote from the CEO, Joey Zwillinger, which adds credibility to the report.
Noise Level: 3
Noise Justification: The article provides relevant information about Allbirds’ financial performance and the company’s progress in its strategic transformation plan, but it lacks a deep analysis or exploration of long-term trends or possibilities. It also does not hold powerful people accountable or explore consequences on those who bear risks.
Financial Relevance: Yes
Financial Markets Impacted: Allbirds’ stock price and other footwear companies may be impacted by their financial performance.
Financial Rating Justification: The article discusses the company’s revenue, net loss, gross profit, and strategic transformation plan which can affect its stock price and potentially influence investors’ decisions in related companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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