With the group’s transformation strategy in progress, Allbirds dropped its Q1 operating loss by 16 percent to $29.8 million from $35.7 million despite a 28 percent decline in sales to $39.3 million from $54.4 million. Lower overall demand and impact from retail store closures and international distributor changes contributed to the lower revenues. 

The Q1 adjusted Ebitda loss was $20.9 million, above the company’s guidance range, and the year-over-year inventory level fell by 45 percent to $60.6 million. Meanwhile, lower freight and unit product costs and fewer inventory write-downs contributed to a 680-basis-point increase in gross margin to 46.9 percent. 

Allbirds - Income
Three months ended March 31 ($ thousand)
  2024 2023 Change
Net revenue 39,327 54,352 -27.6%
Cost of revenue 20,871 32,535 -35.9%
Gross profit 18,456 21,817 -15.4%
SG&A expense 39,706 42,764 -7.2%
Marketing expense 7,760 11,493 -32.5%
Restructuring expense 800 3,239 -75.3%
Total operating expense 48,266 57,496 -16.1%
Loss from operations 29,810 35,679 -16.4%
Interest income 1,020 808 26.2%
Other income 1,698 -74 –
Pre-tax -27,092 -34,945 -22.5%
Tax 239 221 8.1%
Net income -27,331 -35,166 -22.3%
Diluted EPS -0.18 -0.23 21.7%
Source: Allbirds

During the period, Allbirds closed three US retail stores as part of an overall strategy to shutter 10-15 locations in the market this year. Additionally, the group signed definitive agreements with distributors for the Gulf countries and Southeast Asia. 

With the results, Allbirds reiterated its FY24 guidance that calls for a revenue range of $190 to $210 million. That total estimates US sales of $150 to $165 million and international net revenues of $40 to $45 million, which includes $25 to $28 million of impact related to transitions to distributors in certain international markets.

Allbirds - Sales
Three months ended March 31 ($ thousand)
  2024 2023 Change
United States 29,232 40,836 -28.4%
International 10,095 13,516 -25.3%
Total net revenue 39,327 54,352 -27.6%
Source: Allbirds

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