Allbirds Inc (NASDAQ:BIRD) saw its revenue decline by over 21% year-over-year amid its transformation plan to reinvigorate the business with an emphasis on profitable growth.
The eco-friendly footwear company posted revenue of $57.2 million, a 21.2% decline compared to the same period last year and short of consensus estimates of $59.8 million.
The company’s $0.21 loss per share was in line with analyst estimates.
Allbirds operates 60 stores, with 45 stores in the US compared and 15 stores internationally.
Net revenue for the international segment was reported at $13.57 million, falling short of the $15.73 million estimated by analysts and an 18.1% decline from the year-ago quarter. In the United States, net revenue was $43.67 million, slightly below the $44.08 million average estimate, representing a year-over-year decline of 22.1%.
Co-founder and Co-CEO Joey Zwillinger admitted that the company's performance suffered due to a shift away from its core business and an overemphasis on non-core products, particularly in the fourth quarter, leading to disappointing sales.
In response to this, Allbirds initiated efforts to address the situation. The company aims for a significant boost in the upcoming holiday season, maintaining a reasonably consistent promotional approach aligned with market trends.
Allbirds acknowledges the industry's shift toward early promotions and aims to reduce year-over-year inventory by around 40% by the end of the year.
Shares of Allbirds fell 16% on Thursday morning at US$0.80. Shares have lost nearly 65% year-to-date.