Allbirds remains lossmaking but CEO hails “financial progress”

Sustainable footwear and apparel specialist Allbirds said on 7 August that second quarter net revenue decreased 26.8% to $51.6 million versus a year ago, within the company’s guidance range.

It was “primarily attributable to lower unit sales, partially offset by higher average selling prices, within our direct business as well as our international distributor transitions and planned retail store closures”.

The gross margin improved 770 basis points to 50.5% versus a year ago and the net loss improved to $19.1 million from $28.9 million.

Adjusted EBITDA was a loss of $13.7 million, a 24.9% improvement compared to a loss of $18.3 million in the second quarter of 2023, but the adjusted EBITDA margin declined to -26.6% compared to -25.9% in the second quarter of 2023

Inventory at quarter end was $53.7 million, representing a decrease of 42% versus a year ago.

The company also said it has entered into distributor agreements for two new regions, Benelux and Scandinavia and completed transitions to a distributor model in Japan and Australasia.

Subsequent to quarter end, it also announced distribution and licensing agreements and transitioned an additional region, China.

“We are pleased to report another quarter of operational and financial progress,” said CEO Joe Vernachio. “After 18 months of strong execution against our strategic transformation plan, we are entering the next phase of our journey and prioritizing three main focus areas: Making Great Product, Telling Compelling Stories, and Providing Customers with an Engaging Shopping Experience.”

“As we focus on reigniting our product and brand, we are encouraged by the strong consumer response to our recent new offerings. This makes us confident that our fresh, updated products coming to market beginning next year will build on that momentum. We believe the combination of elevated product, storytelling and customer experience in the coming quarters will position the business to return to top line growth in 2025 and enable us to build long-term shareholder value.”