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Allbirds Smaller-Than-Expected Sales Dip Leads to Stock Gain

Allbirds is among the fashion companies to have named a new finance chief during the past month.
Allbirds' second quarter earnings defied low expectations. (Getty)

Allbirds on Tuesday reported a smaller-than-expected revenue dip in the second quarter. The company’s sales fell 10 percent year over year to $71 million.

The embattled sneaker seller, whose sales suffered after customers didn’t latch onto new product categories like apparel and performance shoes, was expecting revenue to drop as much as 18 percent.

The company improved its bottom line after slashing its digital advertising spend by 21 percent year over year. It posted a $18 million loss on its adjusted earnings before interest, taxes and amortisation, down from $21 million a year earlier.

Allbirds’ stock, which has fallen more than percent since its IPO debut, was up more than 9 percent in after-hours trading.

Learn more:

Can a Zero-Carbon Sneaker Make Allbirds Cool Again?

The footwear company says it has cracked its goal to develop a net-zero carbon shoe, but investors want to see a path to profitability.

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