Allbirds CEO Calls 2024 a Year of ‘Operational and Financial Progress’
Shares for Allbirds rose over 5 percent in after-market trading on Tuesday following the company’s latest earnings results.
In the fourth quarter of fiscal 2024, the San Francisco-based company reported that net revenue decreased 22.4 percent to $55.9 million compared to $72.0 million in the same period last year. There was also a net loss in Q4 of $25.7 million compared to $56.8 million in the fourth quarter of 2023.
For the full fiscal year 2024, Allbirds saw net revenues fall 25.3 percent to $189.8 million compared to $254.1 million in 2023. Net loss in 2024 was $93.3 million compared to $152.5 million the prior year.
Earnings for Q4 and the year were in line with Allbirds’ expectations. For the fourth quarter, the company was expecting net revenue between $53 million and $59 million and for the full year, Allbirds was aiming for net revenues of between $187 million to $193 million.
Allbirds noted that the year-over-year decrease is primarily attributable to lower unit sales within its direct business. Revenue was also impacted by its international distributor transitions and planned retail store closures, the company said.
Joe Vernachio, chief executive officer of Allbirds called 2024 a “year of progress both operationally and financially” in a statement on Tuesday.
“We strengthened our operating model, driving gross margin expansion and cost reduction, while also bolstering Allbirds’ international presence via new distributor agreements,” Vernachio, who assumed the CEO role in March after co-founder and former CEO Joey Zwillinger stepped down, said. “Importantly, we reignited our product and marketing engines, which is expected to fuel improvement in trend in the second half of the year, including our return to top line growth in the fourth quarter.”
Looking ahead, Allbirds is expecting net revenue for the full fiscal year of 2025 between $175 million to $195 million. Net revenue in the first quarter of 2025 is expected to be between $28 million to $33 million.
“We are continuing to operate with financial discipline as we focus on further advancing our plans around product, marketing and customer experience,” Vernachio added.
Shares for Allbirds rose over 5 percent in after-market trading on Tuesday following the company’s latest earnings results. In the fourth quarter of fiscal 2024, the San Francisco-based company reported that net revenue decreased 22.4 percent to $55.9 million compared to $72.0 million in the same period last year. There was also a net loss…