Allbirds Posts DD Q4 Sales Decline and Wider Net Loss as ASPs Decline

Allbirds, Inc. reported fourth-quarter net revenue decreased 14.5 percent year-over-year (YoY) to $72.0 million. The year-over-year decrease was primarily attributable to a lower average selling price, driven by increased promotional activity, partially offset by an increase in third-party net revenue.

Gross profit totaled $27.4 million in Q4, compared to $36.3 million in the fourth quarter of 2022, and gross margin declined to 38.0 percent of sales compared to 43.1 percent in the fourth quarter of 2022. The decline in gross profit and gross margin is primarily due to the decrease in average selling price.

In the fourth quarter, SG&A expenses were $41.5 million, or 57.7 percent of net revenue, compared to $41.6 million, or 49.5 percent of net revenue, in the fourth quarter of 2022. The decrease is primarily attributable to a decrease in stock-based compensation, partially offset by an increase in depreciation and amortization expense.

Marketing expenses totaled $14.9 million, or 20.6 percent of net revenue, compared to $16.8 million, or 20.0 percent of net revenue in the fourth quarter of 2022, reflecting a reduction in marketing spend compared to the same period in 2022, driven by decreased digital advertising spend.

Impairment expense totaled $27.4 million, or 38.1 percent of net revenue, compared to $3.3 million, or 3.9 percent of net revenue in the fourth quarter of 2022, resulting from the non-cash impairment of property and equipment and operating lease right-of-use assets associated with certain of our retail stores.

Restructuring expenses totaled $1.2 million, or 1.7 percent of net revenue, compared to nearly zero in the fourth quarter of 2022, primarily due to employee-related benefits and professional service fees associated with the execution of the strategic transformation plan announced in March 2023.

In the fourth quarter of 2023, the net loss was $56.8 million, compared to $24.9 million in the fourth quarter of 2022, and the net loss margin was 78.9 percent in Q4 compared to 29.5 percent in the fourth quarter of 2022.

In the fourth quarter of 2023, Adjusted EBITDA was a loss of $19.5 million, compared to a loss of $12.5 million in the fourth quarter of 2022, and adjusted EBITDA margin declined to negative 27.1 percent compared to negative 14.9 percent in the fourth quarter of 2022.

Image courtesy Allbirds