Allbirds reported another quarterly Ebitda loss and lower revenues for Q2 but said the results were within its guidance range as it made further operational and financial progress. Additionally, the San Francisco lifestyle footwear company moved forward with its international strategy focused on distributors and licensees.
The group improved its year-over-year Q2 operating loss by 32 percent to a loss of $20,190,000 against $29,624,000 as the net loss shrunk by 34 percent to $19,133,000 from a loss of $28,937,000. Gross margin increased by 770 basis points to 50.5 percent on lower freight and duty expenses. Period-end inventory was down 42 percent year-over-year to $53.7 million.
Allbirds attributed a 27 percent drop in Q2 net revenues to $51,582,000 from $70,480,000 to lower unit sales that were partially offset by higher average selling prices within its direct business, 14 planned U.S. retail closures, and higher average selling prices.
During the period ended June 30, the company continued reshaping its international business model by shifting to distributorships in Japan and Australasia and striking new distributor partnerships for Benelux and Scandinavia. Subsequently, distribution and licensing agreements were struck with China.
