Allbirds, which continues to move forward with its “strategic transformation plan” announced in March, intends to complete distribution agreements with partners in Canada and South Korea during H2.
In Q2, the operating loss was $29.6 million against an operating loss of $29.3 million in the period ended June 30. Gross margin improved by 670 basis points to 42.8 percent from 36.1 percent due to lower inventory write-downs, lower freight and logistics costs, and a higher mix of international sales that was partially offset by lower ASPs (average selling prices).
Marketing expense fell by 21 percent to $12.5 million as digital advertising spending was reduced. Inventory at period end was down 20.5 percent from Dec. 31 to $92.8 million.
Total sales fell 9.8 percent to $70.5 million from $78.2 million, impacted by the lower ASPs, promotional activity, and $0.7 million in currency impact. US sales declined by 14 percent to $50.7 million and rose by 4.3 percent in all other markets to $19.7 million.
The company ended the period with 44 stores in the U.S., up two from the prior quarter, and 18 in international markets.
