Is it going to be “Grand opening, Grand Closing” for sneaker brand Allbirds Inc.? It kind of looks that way if stock prices are any indication.
According to Bloomberg the sneaker brand took a major hit on the stock exchange after going public just 18 months ago as share tanked as if they had a celebrity spokesperson spitting antisemitic rhetoric on social media. Things have gotten so bad that Allbirds will be hitting the pause button on opening new stores and have even replace their Chief Financial Officer Mike Bufano with former Adidas AG, Annie Mitchell.
Revenue in the three months through December sank 13% to $84.2 million, trailing the average analyst of $96.7 million. Joey Zwillinger, the company’s co-chief executive officer and co-founder, said Allbirds, which makes shoes from wool and eucalyptus, tried to win over more younger consumers and runners, but those products missed expectations.
“We just didn’t see the sell-through on those franchises that we would’ve hoped for, and that came at the expense of that core franchise,” Zwillinger said in an interview. “We took our eye off the ball a little bit.”
Though Allbirds took a net loss of $101.4 million last year, it still pales in comparison to adidas $540 million loss after cutting ties with Kanye West. Still, adidas is a monster in the game and can take that kind of loss and keep things moving. The same cannot be said about Allbirds which is looking to get stabilize their business before they can fly high again.
“We know we disappointed in 2022,” the company said to begin an investor presentation. “Decisive action” is being taken in what Allbirds described as a “transition” year.
Anytime you take a loss in the business game the best you can do is say it’s a “learning lesson” or it’s just a “transition” into a new direction. Still, it’s L’s regardless. Just sayin.’