Allbirds, a US-based leading footwear and apparel company, has reported a decline in net revenue decrease by 27.2 per cent to $90.9 million for the first half of fiscal 2024 (H1 FY24), down from $124.8 million in the same period last year. Despite the drop in revenue, Allbirds managed to improve its gross margin to 49 per cent, up from 41.6 per cent in H1 FY23, with a gross profit of $44.5 million compared to $52.0 million in the first half of FY23.
Allbirds reported a 27.2 per cent drop in net revenue to $90.9 million for H1 FY24, with a slight improvement in net loss to $46.5 million.
Gross margin rose to 49 per cent from 41.6 per cent.
In Q2 FY24, revenue fell 26.8 per cent to $51.6 million, with a net loss of $19.1 million.
SG&A expenses decreased, and adjusted EBITDA loss improved to $13.7 million.
The company’s net loss for the first half of FY24 was $46.5 million, a slight improvement from the $64.1 million loss recorded in the first half of FY23. The net loss margin was 51.1 per cent, compared to 51.4 per cent in H1 FY23. Additionally, the adjusted EBITDA loss in the first half of FY24 was $34.6 million, compared to a loss of $39.9 million in the same period last year, with the adjusted EBITDA margin declining to negative 38.1 per cent from negative 32.0 per cent in H1 FY23, the company said in a press release.
Selling, general, and administrative expenses in H1 FY24 were $73.3 million, representing 80.6 per cent of net revenue. This was a decrease from $89 million, or 71.3 per cent of net revenue, in the first half of the previous fiscal.
In the second quarter of fiscal 2024 (Q2 FY24), Allbirds continued to face challenges, with net revenue decreasing by 26.8 per cent to $51.6 million, down from $70.5 million in Q2 FY23. The gross profit for the quarter was $26.1 million, a decrease from $30.1 million in the same quarter of the previous year. However, the gross margin improved by 770 basis points to 50.5 per cent, up from 42.8 per cent in Q2 FY23.
Selling, general, and administrative expenses for Q2 FY24 were $33.6 million, or 65.0 per cent of net revenue, compared to $46.2 million, or 65.6 per cent of net revenue, in Q2 FY23. The decrease in SG&A was primarily due to reductions in personnel expenses, occupancy costs, and stock-based compensation. The company reported a net loss of $19.1 million for the quarter, an improvement from the $28.9 million loss in the same period last year, with a net loss margin of 37.1 per cent, down from 41.1 per cent in Q2 FY23.
Adjusted EBITDA for Q2 FY24 showed a loss of $13.7 million, a 24.9 per cent improvement from the $18.3 million loss in Q2 FY23. However, the adjusted EBITDA margin slightly declined to negative 26.6 per cent from negative 25.9 per cent in the same quarter last year.
“We are pleased to report another quarter of operational and financial progress,” said Joe Vernachio, chief executive officer. “After 18 months of strong execution against our strategic transformation plan, we are entering the next phase of our journey and prioritising three main focus areas: making great product, telling compelling stories, and providing customers with an engaging shopping experience.”
Fibre2Fashion News Desk (DP)