: Allbirds stock drops 18% after wider loss, CFO departure


Allbirds Inc. BIRD, -7.81% stock fell 18% in the extended session Thursday after the apparel company reported a wider fourth-quarter loss and said it was embarking on a “strategic transformation plan to reignite growth,” improve costs and capital efficiency, and turn a profit. Allbirds lost $24.9 million, or 17 cents a share, compared with $10.4 million, or 9 cents a share, in the year-ago period. Revenue dropped 13% to $84.2 million, Allbirds said. FactSet consensus called for a loss of 12 cents a share on sales of $97 million. The company made “important progress,” but the year “came to a challenging close, with results below our expectations due to both execution and macro challenges,” co-founder and co-Chief Executive Joey Zwillinger said in a statement. “We need to improve performance, and are announcing a new transformation plan to reinvigorate the business with an emphasis on profitable growth.” Allbirds guided for fiscal first-quarter revenue between $45 million and $50 million, which would be a decline between 20% and 28% as compared with fiscal 2022 first quarter. Separately, Allbirds said it has appointed Annie Mitchell as its chief financial officer, effective April 24. Mitchell will succeed Mike Bufano, who will remain with the company through mid-May “to ensure a smooth transition,” the company said. The stock ended the regular trading day down nearly 8%.

This article was originally published by Marketwatch.com. Read the original article here.

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