Allbirds at all-time low on as sales forecast disappoint

Allbirds

10/03/2023 16:43

(Updates)
    ** Shares of eco-friendly sneaker maker Allbirds Inc
 BIRD.O  fall as much as 38% to a record low of $1.46
    ** Stock is set for worst day ever
    ** Co forecasts Q1 revenue below Wall Street estimates, hurt
by falling demand, as well as a stronger dollar
    ** Also appoints Annie Mitchell, a finance executive from
yoga and gym apparel firm Gymshark Ltd as CFO, replacing Mike
Bufano, effective April 24
    ** Expects Q1 revenue in the range of $45 mln to $50 mln,
compared to analysts' estimate of $51.83 mln, per Refinitiv
data; BIRD also misses Q4 revenue estimates
    ** Brokerage Telsey Advisory Group downgrades stock to
"market perform" from "outperform", and Guggenheim downgrades to
"neutral" from "buy"
    ** Telsey credits downgrade to continued pressure on
discretionary demand and BIRD's new products not resonating well
with co's core customer base
    ** At least five brokerages cut price target on BIRD to as
low as $2
    ** Two of 14 brokerages rate the stock "buy" or higher and
11 "hold"; their median PT is $3 - Refinitiv
    ** BIRD down ~52% since Wedbush warned of slowing demand on
Monday; Stock down over 75% in the past 12 months

 (Reporting by Anne Florentyna Gnanaraja Sekar in Bengaluru)
 ((AnneFlorentyna.GnanarajaSekar@thomsonreuters.com;))