Allbirds Reports Q4 2024 Earnings, Eyes Future Growth Strategy

Allbirds concludes Q4 2024 with results in line with expectations. The CEO emphasizes growth prospects for 2025 as strategic initiatives and product launches are set to drive revenue recovery.

Date: 12-03-2025

AI Rating: 6

Earnings Overview
Allbirds reported a net revenue of $56 million for Q4, aligning with expectations. The strategic actions taken over the year included reducing SG&A costs by over $20 million and closing 15 retail locations, which will have a lasting impact on operational results.

Profit Margins
During the fourth quarter, the gross margin was recorded at 31.3%. According to the CFO's remarks, although this margin was impacted by inventory adjustments and promotions, it is expected to improve significantly in 2025. The company anticipates gross margins in the mid-40s in the upcoming year, showcasing a strong commitment to enhancing profitability.

Guidance for 2025
For the full year 2025, Allbirds projects revenues between $175 million to $195 million, taking into account losses tied to transitional impacts from distributor changes and store closures. Net sales growth, excluding these impacts, is expected to be about 10% year-over-year. The anticipated operational cash use of $11 million indicates a strategic alignment with their growth initiatives.

Future Initiatives
Allbirds articulated its intentions for innovative product launches and marketing strategies in 2025, which could potentially impact both revenue and consumer engagement significantly. Anticipated improvements in organizational operations and robust marketing efforts are aimed at reclaiming market positioning.

Stocks: BIRD