“We are pleased to see solid progress as we embark on our strategic transformation plan for the year. The disciplined operational and financial strategies we have implemented, along with the effective execution by our teams, have enabled us to meet or surpass expectations on our key performance indicators,” stated Joe Vernachio, Chief Executive Officer. “Our focus remains on delivering a refreshed product lineup to consumers, backed by compelling storytelling. Looking ahead, as we continue to enhance our cost structure and underlying operational framework, we believe the business is well-positioned for sustainable growth and to generate value for our shareholders,” concluded Vernachio.
In the initial quarter of fiscal 2024, Allbirds recorded net revenue of 39.3 million US dollars, representing a 27.6% decline on a comparable basis compared to the same period last year. This decrease was attributed to reduced overall demand and the effects of international distributor transitions and retail store closures.
Allbirds’ gross profit for the first three months of the year reached 18.5 million US dollars, down from 21.8 million US dollars in the corresponding period of 2023, primarily due to decreased unit sales. However, gross margin improved by 680 basis points year-over-year to 46.9%, largely driven by cost reductions and healthier inventory management.
Although the adjusted EBITDA margin decreased to negative 53.1% in the first quarter of the current fiscal year, the company managed to narrow the adjusted EBITDA loss to 20.9 million US dollars, compared to a loss of 21.7 million US dollars in the same period last year, marking a 3.6% improvement year-over-year.
Allbirds also reduced its net loss in the three-month period ending in March. The sustainable footwear brand reported a net loss of 27.3 million US dollars, compared to 35.2 million US dollars in the first quarter of 2023, with the net loss margin at 69.5% versus 64.7% in the first quarter of 2023.
For the fiscal year 2024, Allbirds anticipates achieving net sales ranging from 190 million to 210 million US dollars and an adjusted EBITDA loss ranging from 78 million to 63 million US dollars, compared to last year’s net sales of 254 million US dollars and adjusted EBITDA loss of 78 million US dollars.
