Allbirds reported weak Q4 2024 results, with revenue dropping 22.4% to $55.9 million, while gross profit declined to $17.5 million from $27.4 million a year earlier.
For the full fiscal year, net revenue fell 25.3% to $189.8 million, and gross profit dropped to $81.1 million from $104.2 million.
The company closed 15 stores in 2024, which likely contributed to the sales decline, and shuttered another five in early 2025.
However, despite declining sales, the footwear company narrowed its net losses, which fell by 55% to $25.7 million in Q4 and dropped by 39% to $93.3 million in fiscal 2024.
Annie Mitchell, chief financial officer, said in an earnings call: “Our Q4 sales decline also reflects international distributor transitions and retail store closures.
“The full-year impact of these strategic actions was just over $22 million.”
Moving forward, Allbirds plans to introduce new assortments to the collection and reevaluate and optimize its fleet.
Additionally, the company will upgrade its website for a better shopping experience and renovate store presentation in select locations in the upcoming fiscal year.
Joe Vernachio, CEO, added: “By aligning our upper-funnel efforts with both traditional and performance marketing, we expect to expand brand awareness, increase traffic, and boost conversion.
“That brings us to the consumer journey, creating a shopping experience that’s easy, enjoyable, and seamless, whether online or in stores.”
For the upcoming fiscal year, Allbirds expects to achieve a net revenue of $175 million to $195 million and a Q1 net revenue of $28 million to $33 million.
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