Allbirds Inc (NASDAQ:BIRD), the eco-friendly shoemaker, is trading 15% lower in the US pre-market after its full-year losses widened and it revealed the replacement for its departing co-founder chief executive.
Fourth quarter losses per share slipped to US$0.22, worsening on the prior year’s loss of US$0.15 per share, but keeping in line with Zacks estimates.
Revenues during the three months to December 31 2023 dropped by 14.5% to US$72 million, driven by lower average selling prices and increased promotional activity.
In the full-year sales similarly slipped close to 15% to US$254 million, while full-year net losses reached US$1.01 per share.
Underlying losses for the financial year grew to US$78.4 million compared to a loss of US$60.4 million in 2022.
Allbirds also said chief operating officer Joe Vernachio will take the helm as of March 15, with co-founder and departing boss Joey Zwillinger set to remain on the board and serve as a special advisor.
“With the transformative actions we completed over the past year, coupled with world-class leadership, I am confident in the team, and in particular, Joe Vernachio’s stewardship of the brand for this next chapter for Allbirds,” Zwillinger said.
Looking forward, the company is expecting to suffer another underlying loss, this time between US$78 million and US$63 million.
Revenues are expected to slow in 2024, with management predicting net sales between US$190 million and US$210 million.