Why Allbirds Stock Fell 10% at the Open Today
Shares of footwear maker and retailer Allbirds (NASDAQ: BIRD) fell sharply as soon as trading got underway on Dec. 1, losing as much as 10% of its value at one point in the first half hour of trading. The big news driving the decline was the company's third-quarter 2021 earnings update, which hit the market after the close on Nov. 30. Investors were not pleased with what they read.
On the top line, Allbirds reported sales of $62.7 million in the third quarter of 2021. That's an impressive 33% gain compared to the same quarter in 2020 and 40% above its third-quarter 2019 tally. This is the good news, because it means that the company's products remain in demand and that its expansion efforts are working. Notably, Allbirds opened four new stores in the quarter. That may not sound like a lot, but it only ended the quarter with 31 stores, so percentage-wise it is a huge increase in the company's store footprint.
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Source Fool.com