Allbirds, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with net revenues of $189.8 million, down 25.3% from $254.1 million in 2023. The company also recorded a net loss of $93.3 million, compared to a loss of $152.5 million the previous year. Despite the decrease in revenue, Allbirds achieved a gross margin improvement to 42.7%, up from 41.0% in 2023, primarily due to lower freight and duty costs and fewer inventory adjustments. The adjusted EBITDA loss narrowed to $70.0 million from $78.5 million in the prior year, indicating some operational efficiency gains.
The company undertook a strategic transformation plan in March 2023 aimed at reigniting growth and improving capital efficiency. This plan included optimizing its U.S. store fleet, which resulted in the closure of 15 stores in 2024, and transitioning to a distributor model in international markets. Allbirds signed distribution agreements in Canada, South Korea, Japan, Australasia, and China, which are expected to streamline operations but may initially reduce net revenue and gross profit due to lower selling prices to distributors.
Operationally, Allbirds reported a decrease in customer engagement metrics, with a notable decline in unit sales within its direct business. The company’s total employee headcount as of December 31, 2024, was 542, with approximately 90% based in the U.S. The company continues to focus on its core product lines, leveraging sustainable materials to enhance product offerings. However, the transition to a distributor model and the closure of underperforming stores may impact customer acquisition and retention in the short term.
Looking ahead, Allbirds anticipates that its revenue for 2025 will align with 2024 levels, driven by new product demand, although it will be offset by the impacts of its international distributor transitions and retail store closures. The company remains committed to its sustainability goals, aiming for a 50% reduction in per-unit carbon emissions by 2025 and a 95% reduction by 2030. However, the ongoing macroeconomic challenges, including inflation and consumer spending patterns, may pose risks to achieving these targets and overall business growth.
About Allbirds, Inc.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.