“We are pleased to begin the year with solid progress under our strategic transformation plan. The operational and financial rigour we’ve developed, and strong execution by our teams, enabled us to meet or exceed expectations on our key metrics”, commented Joe Vernachio, Chief Executive Officer. “We are focusing on bringing a fresh, updated product offering to consumers, supported by effective storytelling (…). Looking further ahead, as we continue to drive improvement in our cost structure and underlying operating model, we believe the business is on the right path to achieve long-term profitable growth and deliver shareholder value”, concluded Vernachio.

First Quarter Results

In the first quarter of fiscal 2024, the company’s net revenue totalled 39.3 million US dollars, a decrease of 27.6% on a comparable basis to the same period of last year. This was due to a “lower overall demand, as well as the impact of international distributor transitions and retail store closures”.

Allbirds’ gross profit in the first three months of the year amounted to 18.5 million US dollars, as compared to 21.8 million US dollars in the same period of 2023, thanks to a decrease in units sold. On the other hand, gross margin improved by 680 basis points year-over-year to 46.9%, largely due to reduced costs and a healthier inventory.

While the adjusted EBITDA margin dipped to negative 53.1% in this first quarter of the current fiscal year, the company reduced the adjusted EBITDA loss to 20.9 million US dollars, on a comparable basis to a loss of 21.7 million US dollars in the same period last year – an improvement of 3.6% year-over-year.

Allbirds also narrowed its net loss in the three months to March. The sustainable footwear brand posted a net loss of 27.3 million US dollars, as compared to 35.2 million US dollars in the first quarter of 2023, and the net loss margin was 69.5% as compared to 64.7% in the first quarter of 2023.

Full Year Outlook

For the full year 2024, the company expects to achieve net sales in the range of 190 million to 210 million US dollars and an adjusted EBITDA loss in the range of 78 million to 63 million US dollars, on a comparable basis to last year’s net sales of 254 million US dollars and adjusted EBITDA loss of 78 million US dollars.