Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

Summary of Allbirds (BIRD) FY Conference Call - June 03, 2025 Company Overview - **Company**: Allbirds (BIRD) - **Industry**: Footwear and Apparel - **Focus**: Transformation and growth strategy post-IPO in 2021 Key Focus Areas 1. **Product Development** - Introduction of 19 new products planned between July and December 2025, following 4 new products introduced from January to July 2025 [7][8] - Emphasis on iconic materials and silhouettes, including waterproof shoes and cozy wool products [9][11] - New product lines aimed at casual lifestyle footwear, targeting various use occasions [20][21] 2. **Marketing Strategy** - Reintroduction of the brand through storytelling and engaging content, including a marketing campaign featuring Stanley Tucci [23][24] - Increased marketing spend planned for 2025 to enhance brand awareness, currently at only 15% aided awareness [48][50] - Focus on creating a strong brand identity that resonates with consumers [25][52] 3. **Customer Experience** - Enhancing the purchasing experience both online and in-store, recognizing that many consumers prioritize experience over immediate purchases [4][5] - Commitment to maintaining healthy inventory levels to support customer satisfaction and future growth [33][34] Financial Insights - **Core Consumer Demographics**: Households with an income of $150,000, typically married couples with children, aged 30-50 [12][18] - **Tariff Impact**: Current footwear production in Vietnam faces a 10% tariff, with scenario planning for potential increases [15][17] - **Operational Improvements**: Focus on reducing costs in product COGS and SG&A, leading to improved cash flows and positioning for profitability [29][30] Distribution Strategy - **Balanced Marketplace Approach**: Combination of direct-to-consumer (DTC) and wholesale strategies, with a focus on building a robust product engine for wholesale [31][32] - **International Expansion**: Transitioning to distributor models in various international markets, resulting in immediate profitability [35][56] Product and Market Positioning - **Performance Angle**: Allbirds emphasizes comfort as its performance angle, appealing to consumers seeking lifestyle footwear that is both stylish and comfortable [40][41] - **Sustainability Proposition**: Commitment to sustainable materials and practices, enhancing the brand's appeal to environmentally conscious consumers [43][44] Future Outlook - **Growth Potential**: Anticipation of significant growth opportunities in the casual lifestyle footwear market, with a focus on innovative product offerings and enhanced marketing efforts [63][66] - **Excitement for Upcoming Products**: Confidence in the upcoming product launches from July 2025 onwards, with a strong belief in the company's ability to return to profitability [66][67] Conclusion - Allbirds is undergoing a significant transformation aimed at revitalizing its brand through product innovation, strategic marketing, and enhanced customer experiences, positioning itself for growth and profitability in the coming years.

Company Performance - Allbirds, Inc. (BIRD) has returned approximately 4.6% since the beginning of the calendar year, outperforming the Retail-Wholesale sector, which has returned an average of 1.9% year-to-date [4] - The Zacks Consensus Estimate for BIRD's full-year earnings has increased by 8.6% over the past three months, indicating improved analyst sentiment and earnings outlook [3] Industry Comparison - Allbirds, Inc. is part of the Retail - Apparel and Shoes industry, which includes 40 companies and currently ranks 135 in the Zacks Industry Rank. This industry has seen an average loss of 9% this year, highlighting BIRD's relative outperformance [5] - In contrast, Herbalife Ltd (HLF), another Retail-Wholesale stock, has outperformed the sector with a year-to-date return of 14.2% and has a consensus EPS estimate that has increased by 9.8% over the past three months [4][5] Sector Ranking - The Retail-Wholesale group, which includes 207 companies, currently ranks 9 in the Zacks Sector Rank, indicating a competitive position within the broader market [2] - Allbirds, Inc. holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to other stocks in the sector [3]

Core Insights - Allbirds, Inc. is participating in two upcoming investor conferences, indicating active engagement with the investment community [1][2] - The company emphasizes its commitment to sustainability and innovative materials in its product offerings, which is a core aspect of its brand identity [1] Company Overview - Allbirds, Inc. is a global lifestyle footwear brand founded in 2015, known for its sustainable approach to product design [1] - The company's first product, the Wool Runner, set the standard for its commitment to comfort and sustainability, and it continues to expand its product range [1] - Allbirds utilizes natural materials such as Merino wool, tree fiber, and sugarcane to differentiate its products from conventional offerings [1] Upcoming Events - Allbirds will participate in the TD Cowen 9th Annual Future of the Consumer Conference on June 3rd, 2025, with a fireside chat scheduled for 11:45 a.m. ET [2] - The company will also be featured in the Maxim Group 2025 Virtual Tech Conference on June 4th, 2025, with a fireside chat at 11:30 a.m. ET [2]

Group 1 - Momentum investing contrasts with the traditional strategy of "buy low and sell high," focusing instead on "buying high and selling higher" [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [2] Group 2 - Allbirds, Inc. (BIRD) has shown significant recent price momentum, with a four-week price change of 29.9%, indicating growing investor interest [3] - BIRD has gained 0.5% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe, with a beta of 1.47 indicating high volatility [4] - BIRD holds a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential success [5] Group 3 - An upward trend in earnings estimate revisions has contributed to BIRD's Zacks Rank 2 (Buy), as increased analyst interest typically attracts more investors [6] - BIRD is trading at a favorable Price-to-Sales ratio of 0.29, indicating it is undervalued at 29 cents for each dollar of sales [6] - The stock has significant potential for growth, supported by its fast-paced momentum characteristics [7] Group 4 - In addition to BIRD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of winning stock picks [8]

Core Insights - Allbirds, Inc. has signed distribution agreements to expand its presence in Central and South America, as well as Southern Europe [1][2] - Kiwi Life Group and Trendy King have been appointed as exclusive distributors for Allbirds in their respective regions [2][4] Group 1: Distribution Agreements - Allbirds has partnered with Kiwi Life Group for exclusive distribution in Central America, the Caribbean, Chile, and Colombia [2] - Trendy King will serve as the exclusive distributor for Allbirds in Spain and Portugal [2] Group 2: Strategic Goals - The company aims to build a strong presence in new geographies to drive long-term profitable growth [3] - Allbirds is focused on enhancing its product, marketing, and customer experience initiatives [3] Group 3: Distributor Insights - Kiwi Life Group is dedicated to introducing innovative footwear brands to Latin America and the Caribbean, emphasizing sustainability [3] - Trendy King has over 30 years of experience in the fashion industry and specializes in multichannel commercial solutions [4] Group 4: Company Overview - Allbirds is a modern lifestyle footwear brand founded in 2015, known for its commitment to sustainability and comfort [5] - The brand utilizes natural materials such as Merino wool, tree fiber, and sugarcane in its products [5]

Part I—Financial Information [Item 1. Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited Q1 2025 financials show decreased revenue, a net loss of $21.9 million, reduced assets, and negative operating cash flow, adjusted for a 1-for-20 reverse stock split - On August 30, 2024, the company executed a **1-for-20 reverse stock split** of its Class A and Class B common stock, effective September 4, 2024 All share and per-share data in the financial statements have been retroactively adjusted to reflect this split[37](index=37&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - In Q1 2025, the company updated its accounting estimate for gift card breakage based on more historical data, resulting in a one-time cumulative adjustment that increased net revenues and gross profit by approximately **$1.9 million**[52](index=52&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $147.3 million from $188.9 million, driven by reduced cash, while total liabilities and stockholders' equity also declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $39,056 | $66,732 | | Inventory | $42,873 | $44,121 | | Total current assets | $97,788 | $130,558 | | **Total Assets** | **$147,259** | **$188,879** | | **Liabilities & Equity** | | | | Total current liabilities | $30,441 | $44,369 | | Total liabilities | $64,437 | $87,194 | | Total stockholders' equity | $82,822 | $101,685 | | **Total Liabilities and Stockholders' Equity** | **$147,259** | **$188,879** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2025 net revenue was $32.1 million (down from $39.3 million), with a gross profit of $14.4 million and a net loss of $21.9 million, an improvement from $27.3 million in Q1 2024 Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net revenue | $32,114 | $39,327 | | Gross profit | $14,400 | $18,456 | | Loss from operations | $(22,830) | $(29,810) | | Net loss | $(21,875) | $(27,331) | | Net loss per share, basic and diluted | $(2.73) | $(3.52) | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash used in operating activities was $27.9 million, leading to a net decrease in cash of $27.7 million, with an end-of-period balance of $39.9 million Cash Flow Highlights (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(27,883) | $(26,201) | | Net cash used in investing activities | $(214) | $(766) | | Net cash provided by financing activities | $3 | $33 | | Net decrease in cash, cash equivalents, and restricted cash | $(27,674) | $(27,748) | | Cash, cash equivalents, and restricted cash—end of period | $39,910 | $102,925 | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the 1-for-20 reverse stock split impact, a $1.9 million revenue increase from gift card breakage, and ongoing securities class action lawsuits - The company is involved in two substantially similar securities class action lawsuits filed in April and May 2023, alleging violations of the Securities Exchange Act The company is vigorously defending against these lawsuits[120](index=120&type=chunk) - As of March 31, 2025, the company had no amounts outstanding under its **$50.0 million** revolving credit facility, which matures on April 17, 2026[83](index=83&type=chunk) - Total unrecognized compensation cost for unvested stock options, RSUs, and PSUs was approximately **$11.4 million** as of March 31, 2025, expected to be recognized over a weighted-average period of **1.88 to 2.34 years**[115](index=115&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 18.3% revenue decline to store closures and international distributor transition, with reduced operating expenses leading to an improved net loss of $21.9 million Q1 2025 vs. Q1 2024 Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $32,114 | $39,327 | $(7,213) | (18.3)% | | Gross Profit | $14,400 | $18,456 | $(4,056) | (22.0)% | | Gross Margin | 44.8% | 46.9% | - | - | | SG&A Expense | $25,212 | $39,706 | $(14,494) | (36.5)% | | Marketing Expense | $12,018 | $7,760 | $4,258 | 54.9% | | Net Loss | $(21,875) | $(27,331) | $5,456 | 20.0% | - The decrease in net revenue was primarily driven by a **$6.9 million decline** in the direct business, which includes a **$4.1 million impact** from store closures, and a **$2.8 million impact** from the transition to third-party distributors internationally[164](index=164&type=chunk) - The company has significantly reduced its physical retail footprint, with the total number of stores decreasing from **57** at the end of Q1 2024 to **28** at the end of Q1 2025[141](index=141&type=chunk)[143](index=143&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net loss | $(21,875) | $(27,331) | | Stock-based compensation | $2,284 | $3,344 | | Depreciation and amortization | $1,902 | $4,771 | | Restructuring expense | $— | $800 | | Other adjustments | $(1,025) | $(2,718) | | **Adjusted EBITDA** | **$(18,644)** | **$(20,895)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the reporting period [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[206](index=206&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[208](index=208&type=chunk) Part II—Other Information [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company faces two consolidated securities class action lawsuits and two shareholder derivative suits, which it intends to vigorously defend - Allbirds and certain executives are defendants in two consolidated securities class action lawsuits filed in 2023, alleging violations of federal securities laws by making false or misleading statements The company's motion to dismiss was granted with leave to amend, and a motion to dismiss the amended complaint is pending[120](index=120&type=chunk)[368](index=368&type=chunk) - The company is also a defendant in two shareholder derivative suits with allegations similar to the class actions These cases are currently stayed pending the outcome of the securities class action[121](index=121&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) The company outlines numerous risks, including challenges in executing its strategic transformation, continued net losses, manufacturer concentration, and the unique duties as a Public Benefit Corporation - The company may be unable to successfully execute its strategic transformation plan, which aims to reignite the brand, optimize U.S stores, transition its international go-to-market strategy, and improve cost savings[213](index=213&type=chunk) - The company has a history of significant net losses, including **$93.3 million** in 2024, and anticipates incurring losses for the foreseeable future due to ongoing investments and operational costs[238](index=238&type=chunk) - The business is subject to manufacturer concentration risk, having transitioned all new footwear manufacturing to a **single manufacturer** in Vietnam during 2023, though efforts to add more manufacturers are underway[252](index=252&type=chunk) - As a Public Benefit Corporation (PBC), the board has a fiduciary duty to balance stockholder interests with its public benefit purpose, which could lead to decisions that do not maximize short-term financial returns for stockholders[372](index=372&type=chunk)[373](index=373&type=chunk) - The company's dual-class stock structure concentrates significant voting control with its co-founders and their affiliates, limiting the influence of other stockholders on corporate matters[388](index=388&type=chunk) - The company faces risks from potential tariffs on imports from key manufacturing countries like Vietnam and China, which could increase product costs and harm financial results[351](index=351&type=chunk)[354](index=354&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=86&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities, no use of proceeds from registered securities, and no stock repurchases during the quarter [Item 3. Defaults Upon Senior Securities](index=87&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable [Item 4. Mine Safety Disclosures](index=87&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable [Item 5. Other Information](index=87&type=section&id=Item%205.%20Other%20Information) On March 15, 2025, director Joey Zwillinger adopted a Rule 10b5-1 trading plan to sell up to 50,000 shares of common stock over a one-year period - On March 15, 2025, director Joey Zwillinger adopted a Rule 10b5-1 trading plan to sell up to **50,000 shares** of the company's common stock The plan has a **one-year duration** starting June 13, 2025[427](index=427&type=chunk) [Item 6. Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including corporate documents and certifications

Core Insights - Allbirds, Inc. reported revenue of $32.11 million for the quarter ended March 2025, reflecting an 18.4% decrease year-over-year, but exceeding the Zacks Consensus Estimate of $30.87 million by 4.03% [1] - The company's EPS was -$2.73, an improvement from -$3.60 in the same quarter last year, and surpassed the consensus EPS estimate of -$3.85 by 29.09% [1] Financial Performance - The net revenue from the United States was $25.63 million, which is a 12.3% decline year-over-year, and it exceeded the average estimate of $23.92 million [4] - International net revenue was reported at $6.49 million, down 35.7% year-over-year, compared to the average estimate of $6.68 million [4] Market Performance - Over the past month, Allbirds, Inc. shares have returned +8.8%, while the Zacks S&P 500 composite increased by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Allbirds, Inc. (BIRD) came out with a quarterly loss of $2.73 per share versus the Zacks Consensus Estimate of a loss of $3.85. This compares to loss of $3.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 29.09%. A quarter ago, it was expected that this company would post a loss of $3.52 per share when it actually produced a loss of $3.23, delivering a surprise of 8.24%.Over the last four quarters, the company has surpassed ...

Allbirds (BIRD) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Christine Greany - Managing DirectorJoe Vernachio - CEO, President, Secretary & DirectorAnnie Mitchell - CFOJanine Stitcher - Retail analystAlex Straton - Equity Research Managing Director Conference Call Participants Tom Forte - Managing Director & Senior Consumer Internet AnalystDylan Carden - Research Analyst Operator Ladies and gentlemen, thank you for standing by, and welcome to Allbird's First Quarter twenty twenty fiv ...