// Allbirds sees gross profits for the quarter slip 4% year on year to £28.14m
// The brand blamed the declining profits Covid restrictions in China, a decrease in consumer spending amid the cost of living crisis and unfavourable currency exchange rates
Allbirds has reported a rise in net revenues but a drop in gross profits for the third quarter of 2022.
The US footwear retailer saw a 16% year-on-year rise in revenues during Q3 2022, reaching £63.2 million – a 54% increase compared to the same period in 2020.
But gross profits for the quarter fell 4% year on year to £28.14m and for the year to date, gross profit slipped 4.6% to $93.3m.
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For the nine months up to 30 September, net revenue rose 18.5% year on year to $213.6m and 52.5% on a two-year comparison.
The business said the rise in revenues was due to increases in the number of orders and average order value.
The retailer blamed Covid restrictions in China, as well as the slump in consumer spending amid the cost of living crisis and unfavourable currency exchange rates.
Allbirds chief executive Joey Zwillinger said: “We delivered a strong quarter in what remains a highly dynamic operating environment. I am proud that we exceeded our Q3 adjusted revenue and adjusted EBITDA guidance targets while also delivering on our sustainability goals.
“Looking ahead to year end and 2023, we continue to expect macro headwinds to persist but believe that our brand, our growth strategy, and simplification initiatives position us well to emerge strongly from this period.”
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