Allbirds faced headwinds in Q3, reporting a 21.2% decline in net revenue at $57.2 million. The San Francisco-based footwear company attributes this setback to heightened promotional activity and reduced unit sales.
The three-month sales period ending September 30 also saw an additional impact of approximately $0.8 million due to the shift from a direct selling to a distributor model in South Korea and Canada.
Despite these challenges, Allbirds posted a net loss of $31.6 million, or $0.21 per basic and diluted share, widening from the prior-year loss of $25.2 million.
Joey Zwillinger, co-founder and CEO, noted, “Our Q3 results reflect solid execution under our Strategic Transformation Plan. Progress in inventory reduction, operating cash use, and cost control resulted in adjusted EBITDA exceeding expectations.»
He emphasized the advancement of the strategy to transition to third-party distributors in key international markets. Zwillinger affirmed the company’s commitment to profitable growth and long-term shareholder value.
Post-Q3, Allbirds announced a non-binding letter of intent with distributor partners in Japan and Australia/New Zealand. These strategic transitions are set to be finalized in mid-2024, marking a pivotal move for the company’s global presence.