Footwear retailer Allbirds reported weak results in Q1 2025, with revenue dropping by 18% to $32.1 million and gross profit falling to $14.4 million compared to $18.5 million in the year prior.
However, Allbirds narrowed its losses in the first quarter, with a net loss of $21.9 million compared to $27.3 million year over year.
The footwear retailer blamed its recent store closures and international transactions for the dip in revenue.
Despite its weak performance in Q1 2025 and Q4 2024, Allbirds expects double-digit growth for the full year, with a turnaround strategy being executed.
The brand expects a total net revenue of $175 million in the full fiscal year compared to $189.8 million in 2024.
During an earnings call, Allbirds’ executives highlighted a strategy that includes strengthening its marketing strategies and increasing product assortment for customers.
Joe Vernachio, President and CEO of Allbirds, said: “As we move through 2025, the foundational work we’ve done over the past year, including reducing our retail footprint, transitioning international markets to a distributor model, rightsizing inventory, and lowering costs, is now coming together with our efforts in product, marketing, and customer experience.
“Together, we believe these work streams will build momentum toward a meaningful inflection point in the back half of the year.”
Additionally, the footwear brand plans to renovate and upgrade its stores, with more expansion plans and a new store set to open in San Francisco.
The company also stated that it is well-prepared for additional tariffs and expects a minimal impact in the upcoming fiscal quarters.
Meanwhile, executives from the footwear industry have signed a letter urging President Donald Trump to exclude shoes from the tariffs.
Click here to sign up to Retail Gazette‘s free daily email newsletter
