Shares for Allbirds sank nearly 10 percent in after-market trading on Thursday after the footwear company lowered its yearly guidance again following its latest earnings report.
In the third quarter of fiscal 2025, the San Francisco-based company reported that net revenue decreased 23.3 percent to $33.0 million, compared to $43.0 million in the same time last year. There was also a net loss in Q3 of $20.3 million, compared to $21.2 million in the third quarter of 2024.
Allbirds noted that its year-over-year decrease is primarily attributable to structural changes, including impacts from international distributor transitions and planned retail store closures.
Earnings for Q3 were in line with Allbirds’ expectations. For the third quarter, the company was expecting net revenue of between $33 million and $38 million. For analysts, they were expecting earnings in Q3 to be between $33 million and $35.5 million, according to Yahoo Finance.
Joe Vernachio, chief executive officer of Allbirds, said in a statement that the company is “pleased” to deliver third quarter results in line with expectations, highlighted by a “robust flow” of new product introductions – many of which met with strong customer response.
“Entering the final months of the year, we will continue to support our product engine with compelling marketing content to capture consumer mindshare and reignite growth,” Vernachio said. “Throughout the holiday season, we will be spotlighting gifting ideas and emphasizing Allbirds’ core principles of comfort, style and sustainability.”
Looking ahead, Allbirds said it expects approximately $23 million to $25 million of impact to revenue associated with the transition from a direct selling model to a distributor model in certain international markets and the closure of certain Allbirds stores in the U.S.
For the full fiscal year of 2025, Allbirds expects net revenue between $161 million and $166 million compared to previous guidance of yearly net revenue between $165 million and $180 million.
In the fourth quarter of 2025, the company expects net revenue between $56 million and $61 million.
“Our teams are focused on accelerating progress under our turnaround in the quarters ahead,” Vernachio added. “At the same time, we are taking definitive steps to further reduce costs, enhance liquidity, and pursue value-creating opportunities.”