Allbirds shares fell 10.4 per cent after the sustainable footwear maker reported a narrower loss, but was disappointed with a weaker-than-expected forecast.
The stock, which debuted on the Nasdaq at US$15.00 on November 5 last year, and closed its first day of trading at US$26.03, finished at US$2.52 today - a post-IPO low.
The firm, co-founded by ex-All Whites captain Tim Brown, faces two challenges: consumers who are open to environmentally-friendly products, but are now slowing their spending as economies deteriorate around the world, and a backlash against so-called “woke capitalism” - and a possible Republican majority in the US House of Representatives. The party has threatened to pull state money from investment funds that they see as too activist in ESG (environmental and social governance).
Allbirds beat its own third-quarter guidance as it reported a net loss of US$25.2 million (against US$13.8m in its September quarter last year) on revenue that increased 16 per cent to US$72.7m.
But the firm maintained its full-year revenue guidance of US$305m-$315m (lowered from the earlier US$335-$345m with its second-quarter report) and an adjusted ebitda loss of US$37.5m - US$42.5m potential consumer slowdown.