Citing a negative impact on revenues due to its transition to a direct selling model in both Canada and South Korea, Allbirds now expects its annual revenues to sink by 15 to 22 percent to a range of $66 to 72 million. The annual adjusted Ebitda loss is now pegged at $23 to $26 million.
The group’s Q2 operating loss rose by 17.8 percent to a loss of $30.1 million versus a loss of $25.5 million for the period ended Sep. 30. Revenues slipped by 21 percent to $57.2 million from $72.7 million as year-over-year gross margin fell by 130 basis points to 43.5 percent from 44.8 percent. The Q2 net loss was $31.6 million. Period-end inventories were down by nearly 32 percent year-over-year to $79.9 million.
Following the period’s end, Allbirds struck a non-binding letter of intent for a distributor in Japan and another for a distributor in the Australia/New Zealand market. Both deals should be finalized in mid-2024, the company said.
