BIRD - Allbirds rips a big gain after margins improve in Q2

2023-08-09 10:30:39 ET

Allbirds ( NASDAQ: BIRD ) rallied on Wednesday after posting Q2 results ahead of the consensus estimates. Revenue was down 9.8% year-over-year to $70.5M. The year-over-year decrease was primarily attributable to a decrease in average selling price, driven by promotional activity, and an estimated $0.7M negative impact from foreign exchange. Despite the sales deceleration, the retailer said it made solid progress against its strategic transformation plan. "Most notably, we gained traction across key benchmarks, including reducing inventory levels, lowering operating cash use and exercising cost control," noted CEO Joey Zwillinger.

Gross profit improved to 42.8% of sales during the quarter compared to 36.1% a year ago. The increase in gross margin was primarily due to lower inventory write-downs, lower freight and logistics costs, and a higher mix of international sales, partially offset by the decrease in average selling price.

Shares of Allbirds ( BIRD ) jumped 23.83% in Wednesday morning trading to $1.59 vs. the 52-week trading range of $1.03 to $5.42.

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• Seeking Alpha's Quant Rating for Allbirds

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