Companies

Allbirds beats first quarter expectations

May 15, 2025 United States

The US-based footwear company is confident in its turnaround plans. It delivered a first quarter ahead of expectations and believes it is well positioned to generate “topline momentum” in the second half

“We’re pleased to report another quarter of progress against our plans, delivering financial results within or above our expectations. The foundational work we have done over the past year is converging with our key focus areas of Product, Marketing and Customer Experience and positioning us to generate expected topline momentum in the second half of the year (…). Despite the macro backdrop, positive indicators from our initial product and marketing initiatives, combined with strong execution, make us confident in our long-term trajectory”, commented Joe Vernachio, CEO of Allbirds.

First Quarter Results

In the first quarter of fiscal 2025, the company’s net revenue amounted to 32.1 million US dollars, a 18.2% decrease on a comparable basis compared to the same period the previous year. This decline was due to planned retail store closures and transitions with international distributors, partially offset by gift card breakage.

Allbirds’ gross profit declined to 14.4 million US dollars in the first quarter of the year, as compared to 18.5 million US dollars in the same period of 2024, reflecting a year-on-year decline in gross margin of 220 basis points to 44.8%. This decline was primarily due to a higher proportion of business from international distributors, increased promotional activity, and higher freight costs per unit.

In the three months to the end of March, the footwear company’s adjusted EBITDA loss improved to 18.6 million US dollars from 20.9 million US dollars in the same period a year ago – this performance was above the company’s expected range. However, its adjusted EBITDA margin fell from minus 53.1% to minus 58.1%.

Allbirds reported a first quarter net loss of 21.9 million US dollars and a net loss margin of 68.1%, as compared to a net loss of 27.3 million US dollars and a net loss margin of 69.5% in the first quarter of last year.

As of the 31^st of March, the US company held 39.1 million US dollars in cash and no borrowings on its 50 million US dollar credit facility. Inventories dropped by 29.3% year-over-year to 42.9 million US dollars, in line with expectations ahead of the fall 2025 product launches in the third quarter.

2025 Guidance

Allbirds is reiterating its financial guidance for the full year. This includes the negative impact of approximately 18 to 23 million US dollars on revenue, arising from the transition to a distributor model in certain international markets and the closure of certain stores in the US.

Overall, for the financial year 2025, the company expects to reach a net revenue of 175 million to 195 million US dollars and an adjusted EBITDA loss of 65 to 55 million US dollars.

Image Credits: wwd.com/footwear-news

United States Allbirds Companies Footwear Quarter Results Results