The CEO of footwear brand Allbirds said he is confident of the long-term trajectory despite an 18% drop in first quarter revenues to $32.1 million.
Joe Vernachio said: “We’re pleased to report another quarter of progress against our plans, delivering financial results within or above our expectations. 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.
“During the quarter, we launched our new brand marketing campaign – Cards on the Table, featuring Stanley Tucci (pictured) - which is building awareness of Allbirds among new and existing customers leading up to our fall product launches. 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.”
The company anticipates revenue of $175 million to $195 million for the full year 2025, which includes 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 some Allbirds stores in the US. By comparison, in 2023 it reported revenues of $254.1 million.
The company had a stellar ascent in its first few years, favouring an online selling model and a strong focus on ‘sustainable’ and natural materials. Five years after its launch in 2016, it was valued at more than $2 billion. It went public in 2021. The company then began to close US stores and revamp its strategy.
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