Allbirds is facing pressure to increase its share price after receiving a warning from Nasdaq regarding its stock performance. The sustainable footwear brand disclosed that its Class A common stock had consistently closed below $1 per share for 30 consecutive days, violating Nasdaq’s regulations. Allbirds now has six months to raise its stock price above $1 for at least 10 consecutive business days to regain compliance.
The company stated that it is assessing potential actions to address Nasdaq’s notification but has not yet made any decisions. This comes as Allbirds reported a 14.5 percent revenue decline to $72 million for the fourth quarter. The net loss for the quarter amounted to $56.8 million, or $0.37 per basic and diluted share. In 2023, the company’s net revenues decreased by 14.7 percent to $254.1 million, with a net loss of $152.5 million, or $1.01 per basic and diluted share.
Following its initial public offering in 2021, Allbirds’ stock has plummeted over 90 percent, currently trading at approximately 64 cents per share. The brand unveiled a business turnaround plan in March 2023, focusing on product enhancement, U.S. distribution optimization, and cost reduction. Amid these efforts, Allbirds announced the departure of co-founder and CEO Joey Zwillinger, with COO Joe Vernachio assuming the role. Zwillinger remains involved with the company as a board member and advisor.
