Sustainable footwear and apparel label Allbirds has reported “solid progress” during the second quarter of 2023, ending 30 June, as it undergoes business transformation to drive growth.
Net revenue decreased by 9.8% to £55.2 million ($70.5 million), compared to last year’s increase of 3.8%. The company attributed the year-over-year decrease to the drop in average selling price, driven by promotional activity as well as the foreign exchange rate.
Gross profit totalled £23.6 million ($30.1 million) compared to £22.1 million ($28.2 million) the year prior and gross margin increased to 42.8%. Net loss stood at £22.6 million ($28.9 million) and adjusted EBITDA loss was £14.3 million ($18.3 million).
During the second quarter, the company introduced the SuperLight collection, featuring an innovative midsole made of its most lightweight and low-carbon foam to date. In June, Allbirds revealed MO.ONSHOT, the world’s first net zero carbon shoe, at the Global Fashion Summit in Copenhagen.
It also achieved B Corp recertification, earning an overall score of 96.5, up approximately 18% from the company’s initial certification in 2016.
Joey Zwillinger, Co-founder and CEO of Allbirds, commented: “We are pleased to report another quarter of solid progress against our strategic transformation plan.
“Most notably, we gained traction across key benchmarks, including reducing inventory levels, lowering operating cash use and exercising cost control. Our teams are laser-focused on the four key pillars under our plan, which has us on track to reignite growth, and improve capital efficiency with the goal of driving improved profitability.”
Looking ahead, Allbirds has provided financial guidance targets for the third quarter of 2023, which reflects ongoing work under the company’s strategic transformation plan. This includes expected net revenues to sit between £43-£47 million ($56-$61 million), a decrease of 23% to 16% versus the third quarter of fiscal 2022. In addition, it expects an adjusted EBITDA2 loss of £15-£18 million ($20-$23 million).