Allbirds has reported another double-digit decline in sales in the fourth quarter, which management said was in line with expectations.
Net revenue for the quarter that ended December 31 plunged 22.4 per cent to US$55.9 million, within the company’s guidance range and slightly better than the 24.9 per cent drop in the third quarter.
Net loss narrowed by 54 per cent to $25.7 million, while the loss margin was 46 per cent compared to 78.9 per cent in the prior year.
For the full year, net revenue decreased 25.3 per cent to $189.8 million and net loss reduced 38 per cent to $93.3 million.
“[Last year] was a year of progress both operationally and financially,” said CEO Joe Vernachior. “We strengthened our operating model, driving gross margin expansion and cost reduction, while also bolstering Allbirds’ international presence via new distributor agreements.”
Vernachior expects the company’s improved product and marketing engines to fuel improvement in the second half of this year. He also anticipates that the top line will return to growth in the fourth quarter.
For the full fiscal year 2025, net revenue is forecast to be in the range of $175 million to $195 million.
The outlook reflects approximately $18 million to $23 million of negative impact associated with the transition to a distributor model in international markets and the closure of 20 stores in the US.
