Allbirds (BIRD) Q4 2024 earnings summary

Executive summary

• Q4 and full-year 2024 results met expectations, with disciplined execution and strategic transformation, including a 22.4% Q4 revenue decline to $55.9M and a full-year revenue drop of 25.3% to $189.8M.

• Key initiatives included strengthening the operating model, reducing SG&A by over $20 million, closing 20 U.S. stores, and transitioning to a distributor model in targeted international regions.

• Focused on reigniting the product and marketing engine, with new product assortments and a refreshed brand campaign set to launch in fall 2025.

• Marketing efforts included a new brand campaign with Stanley Tucci and partnerships, achieving over 5 million organic social reach in week one.

• Enhanced consumer experience through a redesigned website and updated store concepts, aiming to drive higher conversion and engagement.

Financial highlights

• Q4 net revenue was $55.9 million, at the midpoint of guidance, with a sales decline reflecting distributor transitions and store closures.

• Gross margin for Q4 was 31.3%, impacted by inventory adjustments, lower promotional activity, incremental air freight, and a higher mix of distributor sales.

• Q4 SG&A expense was $29.2 million (52.2% of revenue), down from $41.5 million last year, driven by lower occupancy and personnel costs.

• Q4 adjusted EBITDA loss was $19.2 million, approximately flat to last year; full year adjusted EBITDA loss was $70.0 million.

• Year-end cash and cash equivalents were $66.7 million, with no outstanding borrowings and inventory down 23.6% year-over-year to $44.1 million.

Outlook and guidance

• Full-year 2025 net revenue expected at $175 million-$195 million, including $18 million-$23 million negative impact from distributor transitions and store closures.

• Excluding structural changes, net sales expected to grow ~10% at the midpoint versus 2024.

• Adjusted EBITDA loss for 2025 projected at $65 million-$55 million, with gross margins anticipated in the mid-40s for the full year.

• Q1 2025 net revenue guidance is $28 million-$33 million, down 22% at the midpoint year-over-year, with adjusted EBITDA loss of $28 million-$25 million.

• Return to top-line growth expected in Q4 2025 as new product and marketing initiatives take effect.