Allbirds Inc (NASDAQ:) shares fell around 16% after-hours following the company’s Q1 results, with EPS of ($0.15) coming in worse than the consensus estimate of ($0.12).

Revenue grew 26% over the previous year to $62.8 million, which was 26% more than what consensus estimates of $61.97 Million. Comparatively to Q1/20 revenue grew 49%. Growth was mainly due to strong consumer demand in the U.S., where revenue grew 35% to $48.9 million, reflecting growth in the company’s digital and physical retail channels, new product launches and refreshes, and improved pricing. The negative effects of external headwinds (COVID-19 in China restrictions, Russia/Ukraine conflicts in Europe and strengthening U.S. dollars in certain international markets) caused international revenue to decline by 3% annually to $13.8 million.

Mike Bufano CEO at Allbirds stated that the company anticipates external headwinds continuing to impact its international business. This results in an updated 2022 direction targets with a cautious outlook.

It expects that Q2 net revenue will range from $75 million to $79 million, an increase of between 10% and 16% year over year. The full 2022 year will see net revenue range from $335 million to $345 million. This is an increase of 21%-24% and 53%-57% respectively compared with 2021.

Allbirds shares are at 70% lower year-to-date

By Davit Kirakosyan