Allbirds Expects to ‘Deliver Topline Momentum’ in the Second Half After Beating Q1 Revenue Expectations
Stephen Garner
Senior Editor
Allbirds chief executive officer Joe Vernachio is confident that company is delivering on its turnaround plans as the shoe brand reports its latest earnings.
In the first quarter of fiscal 2025, the San Francisco-based company reported that net revenue decreased 18.3 percent to $32.1 million, compared to $39.3 million in the same time last year. There was also a net loss in Q1 of $21.9 million, compared to $27.3 million in the first quarter of 2024.
Allbirds noted that its year-over-year decrease is primarily attributable to the company’s planned retail store closures and international distributor transitions. The company also said that its gross margin declined in the period primarily due to a higher mix of business from international distributors, increased promotional activity and higher freight costs per unit in its direct business.
Earnings for Q1 were in line with Allbirds’ expectations, however. For the first quarter, the company was expecting net revenues between $28 million to $33 million. For analysts, Allbirds beat their consensus. According to Yahoo Finance, analysts were expecting earnings in Q1 to be between $28 million and $31.5 million.
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“We’re pleased to report another quarter of progress against our plans, delivering financial results within or above our expectations,” Vernachio said in a statement. “The foundational work we have done over the past year is converging with our key focus areas of product, marketing and customer experience and positioning us to generate expected topline momentum in the second half of the year.”
Looking ahead, Allbirds is keeping its guidance for the year, unlike many of its other footwear counterparts that have elected to pull their guidance due to the economic uncertainty spurred by Trump’s tariff war.
Still, the company said it expects negative impacts of approximately $18 million to $23 million of revenue associated with the transition from a direct selling model to a distributor model in certain international markets and the closure of certain Allbirds stores in the U.S.
As such, Allbirds expects net revenue for fiscal 2025 to be between $175 million to $195 million. In the second quarter of 2025, the company expects net revenue between $36 million to $41 million.
“Despite the macro backdrop, positive indicators from our initial product and marketing initiatives, combined with strong execution, make us confident in our long-term trajectory,” Vernachio added.
