Allbirds says its H1 initiatives focused on new products, marketing, and ‘customer experience’ initiatives will help the footwear group return to a sales gain in the final period of 2025, despite reporting another quarterly operating loss on lower revenues.
The operating loss of Allbirds improved by 18 percent to $16.5 million versus a loss of $20.2 million for the period ended June 30, despite a 23 percent contraction in sales to $39.7 million from $51.6 million. Gross margin sank 980 basis points to 40.7 percent on higher promotional activity, inventory adjustments related to European market transition to a distributor, and higher freight and duty costs in its direct business. The adjusted Ebitda loss of $12.6 million was above the company’s guidance range. The Q2 net loss was $15.5 million against a year-ago loss of $19.1 million.
The group’s current FY25 outlook has been adjusted downward from prior guidance. Annual revenues are now forecast at $165-$180 million, below prior guidance of $175-$195 million. Yearly U.S. sales are projected at $132-$145 million, with the international sales range coming in between $33 and $35 million.
