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Allbirds Inc registers 23.1% Y-o-Y revenue decline in Q2, FY25

  

US-based footwear and apparel company Allbirds, Inc registered a 23.1 per cent Y-o-Y decline in net revenue to $39.7 million in Q2, FY25. This company attributed this decline to planned retail store closures and transitions to a distributor model in certain international markets.

The company's gross profit declined to $16.2 million from the $26.1 million reported in Q2 2024. This led to a gross margin of 40.7per cent, a decrease of 980 basis points. The decline in margin was driven by increased promotional activity, inventory adjustments related to the European market's distributor transition, a higher mix of international distributor sales, and rising freight and duty costs.

Allbirds' reported a net loss of $15.5 million in Q2, FY25. The company’s adjusted EBITDA improved to $12.6 million compared to a $13.7 million loss in Q2 2024. Inventory at the end of the quarter declined by 21.3 per cent to $42.2 million.

Joe Vernachio, CEI, states. strong execution during the first half of the year has set the company up for what’s ahead this fall. The firm is confident of returning to top-line growth in Q4, FY25 driven by a ‘continuous flow of modern lifestyle footwear’ and disciplined operational management, he adds.

In H1, FY25, the company’s net revenue declined 21 per cent Y-o-Y to $71.8 million, while gross margin contracted to 42.6 per cent. Net loss for the six-month period improved to $37.4 million from the $46.5 million loss last year. Adjusted EBITDA loss also improved to $31.2 million from $34.6 million in H1 2024.

Looking ahead, Allbirds expects net revenue to range between $165 million and $180 million for full FY25, factoring in a projected revenue impact of $20 million to $25 million from international distributor shifts and store closures. The adjusted EBITDA loss for the year is projected to be between $55 million and $65 million. In Q3, FY25 Allbirds anticipates net revenue between $33 million and $38 million, with an adjusted EBITDA loss of $16 million to $20 million.

 
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