Footwear brand Allbirds has reported a 25% fall in third quarter revenues to $43 million, mainly attributable to lower unit sales, partially offset by higher average selling.
Revenue was also impacted by international distributor transitions and planned retail store closures.
The brand has signed agreements with distributors in Europe and Latin America.
From July 1, 2025, Chris Sports will be the exclusive Allbirds distributor across Austria, France, Germany, Italy, Liechtenstein and Switzerland. Uruguay-based Wystam will launch the Allbirds brand in select countries within Latin America, becoming the exclusive distributor for Argentina, Bolivia, Ecuador, Paraguay, Peru and Uruguay.
Net revenue in the first nine months of 2024 decreased 26.5% to $133.9 million.
Based in San Francisco, with its roots in New Zealand, Allbirds launched in 2016 with a single shoe, the Wool Runner. A mere five years later, it was valued at more than $2 billion. However, it has faced troubles since a stock market listing in 2021 valued the company at $3.3 billion but losses ran high. It transitioned from an online store to opening stores, but has since reined back on its plans.
At the start of this year, it reported deepening losses as its annual revenues fell 14.7% to $254.1 million. The company also announced a change in leadership as chief operating officer Joe Vernachio took the position of CEO, taking over from co-founder Joey Zwillinger, who remains on the board as an adviser.
The company’s latest sustainability report, the Allbirds 2023 Flight Status, reported a 22% reduction of its per unit carbon footprint in 2023 compared to 2022.
“We are pleased to deliver Q3 results within our expectations as we continue to advance our three strategic focus areas,” said Mr Vernachio. “Our teams are delivering strong execution across the board and we are energised by the opportunity ahead as we prepare to bring our reignited product to market in 2025.”
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