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

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.

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