So I think what I -- let me pull up my own script here just for a second. Invest better with The Motley Fool. At the midpoint of our net revenue and gross profit targets, this represents a gross margin target of 51.1%. 20, , 40 , Your next question comes from Jim Duffy with Stifel. I do think there's more inflation than when we were on the road show last summer. Discounted offers are only available to new members. Thank you. I guess I'm wondering if you're seeing any signs that rising energy prices, stock market volatility, etc., is impacting demand for the brand domestically? What are the drivers that you think remain in the back half of the year in terms of your confidence as we move forward?

And I think that, coupled with the strong distribution model and the strength we've shown in the U.S., gives us a ton of confidence in our long-term model and being able to hit all the financial outcomes that we said, and we've pointed to you guys to as well as just in general on the confidence that this is a brand that really stands for something meaningful that resonates with consumers, and we're just excited to keep building this business.

Source: FactSet, Markets Diary: Data on U.S. Overview page represent trading in all U.S. markets and updates until 8 p.m. See Closing Diaries table for 4 p.m. closing data. Also, during this call, we will discuss adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures that adjust our GAAP results to eliminate the impact of certain items. One, the biggest driver of the change is less demand from our gross margin accretive international business, especially China, which is our highest gross margin market.

To make the world smarter, happier, and richer. Good afternoon. 6. We use cookies and browser capability checks to help us deliver our online services, including to learn if you enabled Flash for video or ad blocking. Calculated by Time-Weighted Return since 2002.

And we're already starting to see that unfold across our lifestyle and performance portfolios. Yeah. Or is it the two this year? We also saw strength during Q1 in the U.S. e-commerce, reinforcing the power and durability of our omnichannel model. First quarter 2022 net revenue increased 26% to $62.8 million compared to the first quarter of 2021 and increased 49% compared to the first quarter of 2020. The Motley Fool has a disclosure policy. Returns as of 07/21/2022. So we feel good that we'll continue to get leverage on that line. In the future, we may incur expenses similar to those for which adjustments are made in calculating adjusted EBITDA and adjusted EBITDA margin. Thanks for all the detail this afternoon. So we are differentiating to the consumer, specifically on the quality and price value that consumers should expect by material.

Analysts were looking for $353 million. We're happy to have you on. Retail store openings and the bulking up of its headcount increased expenses year over year, Allbirds said.

We're extremely proud of this ultra-light running shoe, which carries our lowest carbon footprint yet and includes sustainable performance innovations from heel to toe. First quarter 2022 net revenue in the United States increased 35% to $48.9 million compared to the first quarter of 2021.

To find out more about our data sharing policy, please read ourterms of useandprivacy policy. Until we have more certainty around the length and severity of the external headwinds, we are incorporating a more cautious outlook into our updated 2022 guidance targets, particularly in the second quarter. So as we think about the new fiscal year guidance relative to the past, it implies second-half sales growth and acceleration, I think, up to the mid-20s or low 20s CAGR. Carbon footprint reduction target of 6% for our top 10 products, aligned with our Allbirds Flight Plan to reduce by 50% by the end of 2025 and 95% by 2030.

Thanks, Tim. When we think about the gross margins for the year, like how do we kind of think of the quarterly cadence for the remainder of the year? Inventory was up 11% from year end as we continue to navigate the logistics environment and stay ahead of the demand curve.

Market-beating stocks from our award-winning analyst team. And so we do think that it's a really interesting lever as we scale to make sure that we can selectively continue to selectively use them and do it in a way that's brand accretive. Thanks a lot. What does that mix look like relative to historical product introductions? We want to hear from you. The year-over-year increase is primarily attributable to expenses for the opening of four new stores during the period and operational expenses for 17 additional stores opened since the first quarter of 2021, as well as public company operating costs. This press release and related conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on managements beliefs and assumptions and on information currently available to management. We do have opportunities in different regions. As we look at the balance of 2022, we are managing to a more conservative outlook to reflect what we believe are transitory factors affecting our international business. With the product assortment we have now and the exciting pipeline to come, we believe this is an incredible foundation where we can now layer in select third-party distribution. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. I know you've talked about it already.

Sources: FactSet, Dow Jones, ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. , And if you look at the impact on the invasion in Ukraine, we saw that happen kind of for the bulk of it in March so far, and that continued to extend into April and to today. So we've largely laid the groundwork from an infrastructure perspective, whether that be finance or technology. Further information on these risks and other factors that could cause our financial results, performance, and achievements to differ materially from any results, performance, or achievements anticipated, expressed, or implied by these forward-looking statements is included in the filings we make with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and future reports we may file with the SEC from time to time. Two, our prior full year gross margin guidance target factored in an estimated 200 basis points year-over-year impact of external headwinds on logistics and distribution center costs.

You look at valuations across the group, they are at levels we haven't seen in a long time, and I think there's concerns about the structural margin expansion story across the whole sector. I just got a couple for you. And every bit of our energy is focused on making great products, not just sustainable ones, but we do increasingly believe that that fantastic products do also have to be sustainable. A live webcast and replay of the conference call will be available on the investor relations section of the Allbirds website at https://www.ir.allbirds.com. Like I said in the comments on the call, Matt, this is now the second price increase we took. Yeah, Mark. So there's no plan for any further price increase in 2022.

2022 Financial & Carbon Footprint Reduction Guidance Targets. And so the cost to layer on a third-party partnership like this is really just a very small sales organization and the operations behind that to make that work. Data is a real-time snapshot *Data is delayed at least 15 minutes.

I think most of that commentary is related to where we're seeing the biggest impact to our business, which is in the international segment. So maybe you can talk to how you're going to offset some of these inflationary headwinds as we go forward. So to your point, in the back part of the year, we were at 51.9% in Q1. Allbirds serves customers across 35 countries through 39 Allbirds stores and its e-commerce website, www.allbirds.com. And the other factor then was the impact of FX. And that speaks to that third-party strategy where when we selectively layer in those partnerships, not only is that just great for top-line and bottom-line growth because of the great EBITDA flow-through, but it also just lifts awareness.

3PL . We are navigating a volatile environment, executing well and remain heads down on the growth strategies Tim and I outlined today with a focus on staying on course against our profitability targets while building long-term shareholder value. Underpinning this outlook is our confidence in the purpose-driven lifestyle brand and durable operating model we have built, setting us up for decades of strong growth and profitability despite these short-term factors. Great. And I think it probably looks fairly similar across the three quarters, Q2, Q3, and Q4. Does that mean what happens that you are assuming in the second quarter that kind of fall off in the back half? The company said it will be taking "deliberate pricing actions" in 2022 to fight inflation, which should add 1% to 3% to 2022 revenue growth depending on the timing of its efforts.

So we are continuing to -- we are continuing to focus on those types of real estate transactions when we're signing leases, and we're seeing quite a bit of positive uplift in those as we start up new stores as well. Two questions for me. Looking at our updated 2022 adjusted EBITDA guidance target of negative $25 million to negative $21 million, I'll just note that we have tightened our balance of year SG&A spending to partially offset the impact of the external headwinds. The forward-looking statements contained in this press release and related conference call relate only to events as of the date stated or, if no date is stated, as of the date of this press release and related conference call. First quarter 2022 gross profit increased 26% to $32.6 million compared to the first quarter of 2021, and first quarter 2022 gross margin was 51.9% compared to 52.0% in the first quarter of 2021. As you saw in the release, we have 17 more stores compared to Q1 2021 and opened four stores in the quarter, so store-level SG&A and start-up costs were the primary drivers here along with approximately $2 million of public company costs. Without naming specific businesses, Allbirds said it plans to branch further into wholesale by selling through third parties. At the same time, certain international regions have run into demand headwinds toward the end of the first quarter and have extended into Q2, particularly in China and the EU. Your next question comes from Dylan Carden with William Blair. Thanks, Kyle, and good afternoon, everyone. So that's kind of the overall picture on awareness. and we are grateful to our flock for their hard work and dedication in getting us to this point. All right. We won't necessarily give this color on an ongoing basis, but feel it's helpful given the external environment. , [ : (, )]

So it sounds like you're expecting roughly breakeven EBITDA during the back half of this year. Again, the growth in the gross margin accretive retail and international businesses. Sure. And I'd say we'll continue to update investors on the path forward from there.

The shoe has been road-tested by more than 100 runners over 6,000 miles across a wide array of conditions and climates to validate its remarkable performance attributes. Mike, I guess some modeling minutia. 3PL . And finally, one last model housekeeping note. 1. The bigger driver here is less demand from international. So really good there. The Motley Fool has no position in any of the stocks mentioned. Jim Duffy -- Stifel Financial Corp. -- Analyst. And maybe there's a little bit of impact on our business. The decrease in gross margin primarily reflects higher distribution center and logistics costs, lower mix of international sales, and unfavorable foreign exchange rates, partially offset by favorable mix shift to physical retail and higher margin products, as well as improved pricing. 20 Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Obviously, that's starting to extend to different locations. Please go ahead. And I think in performance and in the flyer, I think, is a great example of us executing that at a very high level.All right.

And then if that has any impact then on the actual kind of shipping cost itself, I think those are the first two big factors. International net revenue increased 3% to $13.8 million compared to the first quarter of 2021, and growth was negatively impacted by external headwinds, including COVID-19 restrictions in China, Russias invasion of Ukraine in Europe, and a strengthening U.S. dollar in some international markets. Change value during the period between open outcry settle and the commencement of the next day's trading is calculated as the difference between the last trade and the prior day's settle. When Joe and I got together in 2015, we saw an opportunity to create a lifestyle and performance brand that could deliver a powerful combination of comfort and design anchored in our environmental purpose and natural material innovation. Please go ahead. On the top line, it's the excitement we feel about our new product road map, especially in footwear. Hi, good afternoon. Allbirds' stock has tumbled 60% since its first trade of $21.21 when it debuted on the Nasdaq last November. Could you just confirm that and I didn't know if you could quantify anymore? I've said this repeatedly.

I think overall, the message that I do want people to kind of really understand, I touched on this a bit in my 2022 guidances. This program also reaffirms our core brand promise by delivering on circularity in addition to our innovation work on natural materials. But by and large, we're -- what we see with -- when we've used -- selectively used promotions in the past, the customers that we acquire have been fantastic and really match the LTV curves for everything that we've seen from our full-price customers. In the first quarter, U.S. retail grew well in excess of 150% year over year and was our biggest driver of growth. So I think all that consumer research is saying, yes, sustainability matters, but it's only in service of better product experiences. We believe this is the prudent approach because we are facing the strongest headwinds in our gross margin accretive international business. Got a confidential news tip? A great line for one performance running credit from last week's launch sums this up. Hey, guys.

Selling, general and administrative expense in the first quarter of 2022 was $38.8 million, or 61.7% of revenue, compared to $23.5 million, or 47.4% of revenue, in the first quarter of 2021. So I guess what gives you confidence in the second-half reacceleration? We define adjusted EBITDA margin as adjusted EBITDA divided by net revenue. Hey, good afternoon, guys. Mutual Funds & ETFs: All of the mutual fund and ETF information contained in this display, with the exception of the current price and price history, was supplied by Lipper, A Refinitiv Company, subject to the following: Copyright Refinitiv. Thanks for taking the question. Your next question comes from Alex Straton with Morgan Stanley. I'm going to turn things over to Tim to speak to product innovation, and I'll jump back to provide color on the other two. I'd like to now share some thoughts on the impact of the external headwinds and how we're thinking about our guidance targets. That was in line with estimates from analysts polled by Refinitiv.

Recall that we estimate the impact of these external headwinds was 200 basis points in 2021, so we are now looking at a total of 450 to 500 basis points of impact over a two-year period. And this has been a strength for us over the past year navigating through a really tumultuous environment in Asia, in particular, with varying degrees of shutdowns.