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Core Insights - Allbirds, Inc. reported a quarterly loss of $2.49 per share, which was better than the Zacks Consensus Estimate of a loss of $2.64, and an improvement from a loss of $2.68 per share a year ago, resulting in an earnings surprise of +5.68% [1] - The company generated revenues of $32.99 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 6.96% and down from $43 million in the same quarter last year [2] - Allbirds shares have increased by approximately 18.9% year-to-date, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$2.27 on revenues of $60.81 million, and for the current fiscal year, it is -$9.59 on revenues of $168.06 million [7] - The estimate revisions trend for Allbirds was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Retail - Apparel and Shoes industry, to which Allbirds belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported net revenue of $33 million, at the low end of guidance, reflecting strong customer response to new products but mixed performance from original icons [14] - Gross margin decreased to 43.2% from 44.4% in Q3 2024, primarily due to a higher mix of digital and international distributor sales and increased duties [14] - Q3 adjusted EBITDA loss was $15.7 million, slightly improved from a loss of $16.2 million a year ago [15] Business Line Data and Key Metrics Changes - New product launches, including the Wool Cruiser and Waterproof Collection, performed well, contributing to positive momentum [5][14] - Core franchises like the Original Runner have been slower to rebuild, indicating a need for sustained execution across multiple product cycles [5] Market Data and Key Metrics Changes - The company anticipates Q4 net revenue to range from $56 million to $61 million, reflecting flat to high single-digit growth compared to the previous year [17] - The impact of international distributor transitions and retail store closures is expected to decrease in Q4, contributing to improved sales [25] Company Strategy and Development Direction - The company is focused on revitalizing the brand through comfort, style, and sustainability, aiming for growth and profitability [4] - A renewed wholesale strategy is set to launch in spring 2026, with plans to expand presence in approximately 150 specialty retail stores across the U.S. [11] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic factors are distracting consumers, impacting sales, but expressed optimism about product momentum and upcoming launches [21][25] - The company is taking steps to enhance liquidity and reduce costs, including potential capital raising [12][16] Other Important Information - The company ended Q3 with $24 million in cash and cash equivalents, and $12 million in outstanding borrowings [16] - Inventory was reported at $43 million, down 25% year-over-year, reflecting strong inventory management [16][30] Q&A Session Summary Question: Focus on third-quarter sales results and future growth - Management acknowledged that while new products are performing well, core franchises like the Runner have not yet rebounded, and macro distractions are affecting consumer behavior [20][23] Question: Comments on inventory and Black Friday strategy - Management indicated that inventory is lean and well-managed, with a competitive strategy planned for Black Friday and Cyber Monday to maintain market share [30][32]

Financial Performance - Net revenue for Q3 2025 was $33.0 million, down 23.3% from $43.0 million in Q3 2024; for the nine months ended September 30, 2025, net revenue was $104.8 million, a decrease of 21.7% from $133.9 million in the same period of 2024[145]. - Gross margin for Q3 2025 was 43.2%, compared to 44.4% in Q3 2024; for the nine months ended September 30, 2025, gross margin was 42.7%, down from 47.5% in the same period of 2024[145]. - The company reported a net loss of $20.3 million for Q3 2025, slightly improved from a net loss of $21.2 million in Q3 2024; for the nine months ended September 30, 2025, the net loss was $57.7 million, compared to $67.6 million in the same period of 2024[145]. - Adjusted EBITDA loss for Q3 2025 was $15.7 million, compared to a loss of $16.2 million in Q3 2024; for the nine months ended September 30, 2025, adjusted EBITDA loss was $46.9 million, down from $50.9 million in the same period of 2024[145]. - Net revenue for the three months ended September 30, 2025, was $32.989 million, a decrease of $10.007 million or 23.3% compared to $42.996 million in 2024, primarily due to declines in U.S. direct business and international business[172]. - Gross profit for the same period decreased by $4.834 million or 25.3%, resulting in a gross margin of 43.2%, down from 44.4% in 2024[174][175]. - Net loss for the three months ended September 30, 2025, was $20.324 million, compared to a net loss of $21.177 million in 2024[172]. - Net revenue for the nine months ended September 30, 2025, was $104.787 million, a decrease of $29.118 million or 21.7% compared to $133.905 million in 2024[186]. - The decrease in nine-month net revenue was primarily driven by a $16.6 million decline in U.S. direct business and a $15.5 million decline in international business[186]. - Gross profit decreased by $18.8 million, or 29.6%, to $44.80 million for the nine months ended September 30, 2025, compared to $63.59 million in 2024[188]. - Gross margin declined to 42.7% for the nine months ended September 30, 2025, from 47.5% in 2024, primarily due to a lower percentage of sales from retail business[189]. Operational Changes - As of September 30, 2025, the company operated 23 stores, a reduction from 34 stores as of September 30, 2024, reflecting a strategic optimization of the store fleet[150]. - The company closed 9 stores in the U.S. and 1 store in the U.K. during the first three quarters of 2025, continuing its trend of store closures to enhance operational efficiency[149]. - Total operating expenses for the three months ended September 30, 2025, were $34.126 million, a decrease of $6.731 million or 16.5% compared to $40.857 million in 2024[176]. - Selling, general, and administrative expenses decreased by $9.289 million or 30.0% to $21.678 million, driven by reductions in personnel and occupancy costs[177]. - Marketing expenses increased by $1.864 million or 18.9% to $11.719 million, primarily due to higher digital advertising costs for new product launches[178]. - Total operating expense decreased by $31.3 million, or 23.1%, to $104.04 million for the nine months ended September 30, 2025, compared to $135.37 million in 2024[190]. - Selling, general, and administrative expense decreased by $33.2 million, or 31.8%, to $71.05 million for the nine months ended September 30, 2025[191]. Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents of $23.7 million[207]. - The company entered into a secured $50.0 million revolving credit agreement on June 30, 2025, with the potential to increase borrowing capacity by an additional $25.0 million[209]. - For the nine months ended September 30, 2025, net cash used in operating activities was $51.8 million, consisting of a net loss of $57.7 million, adjusted for non-cash charges of $13.1 million[217]. - During the same period in 2024, net cash used in operating activities was $53.0 million, with a net loss of $67.6 million, offset by non-cash charges of $21.5 million[218]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $1.4 million, primarily due to $2.3 million in capital expenditures[220]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $9.3 million, primarily from $12.3 million in borrowings on the line of credit[222]. - The Credit Agreement has a maturity date of June 30, 2028, with customary representations and warranties, including restrictions on indebtedness and minimum consolidated EBITDA[212]. Strategic Focus - The company aims to grow brand awareness and customer acquisition through a cost-effective go-to-market strategy, focusing on both U.S. and international markets[146]. - The company emphasizes innovation in sustainable materials as a core part of its product development strategy, which may require ongoing investments and could delay profitability[151]. - Current macroeconomic conditions, including elevated inflation and supply chain disruptions, are expected to impact consumer spending and demand for the company's products[154]. - The company is committed to reducing its carbon footprint and environmental impact, which may lead to higher expenses in the short term[152]. Accounting and Reporting - As of September 30, 2025, there have been no changes to critical accounting estimates affecting the financial statements[225]. - The company is classified as an "emerging growth company" and may take advantage of certain exemptions from reporting requirements until December 31, 2026[227]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $43.0 million for the nine months ended September 30, 2025[214]. - Interest expense changed from income of $0.744 million in 2024 to an expense of $0.370 million in 2025, a change of $1.114 million or 149.7%[182]. - Interest income decreased by $2.98 million, or 99.7%, to $9, primarily due to a decrease in short-term investments[196]. - Other income decreased by $0.7 million, or 28.7%, to $1.75 million for the nine months ended September 30, 2025[198]. - Impairment expense increased to $0.729 million in the three months ended September 30, 2025, compared to no impairment in the same period in 2024[179].

Core Insights - Allbirds shares fell nearly 10% in after-market trading following a lowered yearly guidance after the latest earnings report [1] - The company reported a 23.3% decrease in net revenue for Q3 fiscal 2025, totaling $33.0 million compared to $43.0 million in the same period last year [1][2] - Allbirds experienced a net loss of $20.3 million in Q3, slightly improved from a loss of $21.2 million in Q3 2024 [1] Revenue and Earnings - The year-over-year revenue decrease is attributed to structural changes, including international distributor transitions and planned retail store closures [2] - Q3 earnings were in line with expectations, with the company anticipating net revenue between $33 million and $38 million, while analysts expected between $33 million and $35.5 million [2] - For the full fiscal year 2025, Allbirds expects net revenue between $161 million and $166 million, down from previous guidance of $165 million to $180 million [5] Future Outlook - Allbirds anticipates a revenue impact of approximately $23 million to $25 million due to the transition from a direct selling model to a distributor model in certain international markets and the closure of some U.S. stores [4] - The company plans to support its product engine with compelling marketing content to capture consumer interest and reignite growth during the holiday season [4] - Allbirds is focused on accelerating progress under its turnaround strategy while taking steps to reduce costs, enhance liquidity, and pursue value-creating opportunities [6]

Financial Performance - Third quarter 2025 net revenue decreased 23.3% to $33.0 million compared to $43.0 million in the third quarter of 2024[4] - Gross profit for the third quarter of 2025 was $14.2 million, with a gross margin decline of 120 basis points to 43.2%[5] - Net loss for the third quarter of 2025 was $20.3 million, with a net loss margin of 61.6% compared to 49.3% in the third quarter of 2024[7] - Adjusted EBITDA loss for the third quarter improved to $15.7 million from a loss of $16.2 million in the same quarter last year[10] - The net loss for Q3 2025 was $20,324 million, compared to a net loss of $21,177 million in Q3 2024, indicating a slight improvement[30] - Adjusted EBITDA for the three months ended September 30, 2025, was $(15,730,000), compared to $(16,241,000) in the same period of 2024, indicating a narrowing loss[41] Expenses - Selling, general, and administrative expenses (SG&A) were $21.7 million, or 65.7% of net revenue, down from $31.0 million, or 72.0% of net revenue in the same quarter last year[6] - Marketing expenses increased to $11.7 million, or 35.5% of net revenue, compared to $9.9 million, or 22.9% of net revenue in the third quarter of 2024[7] - Total operating expenses in Q3 2025 were $34,126 million, representing an increase of 16.5% from $40,857 million in Q3 2024[30] Guidance and Projections - Full year 2025 revenue guidance revised to $161 million to $166 million, down from previous guidance of $165 million to $180 million[17] - Adjusted EBITDA loss guidance for 2025 is now projected at $63 million to $57 million, compared to prior guidance of $65 million to $55 million[17] Cash and Assets - As of September 30, 2025, the company had $23.7 million in cash and cash equivalents and $12.3 million in outstanding borrowings under its $50.0 million revolving credit facility[14] - Cash and cash equivalents decreased to $23,704 million as of September 30, 2025, down from $66,732 million at the end of 2024[34] - Total assets as of September 30, 2025, were $119,914 million, a significant decrease from $188,879 million at the end of 2024[34] - Total liabilities decreased to $67,982 million as of September 30, 2025, compared to $87,194 million at the end of 2024[34] Inventory and Store Count - Inventory at the end of the quarter was $43.1 million, representing a decrease of 25.0% year-over-year[8] - The total store count decreased from 60 stores as of September 30, 2023, to 23 stores as of September 30, 2025, reflecting a significant reduction in physical presence[43] - The company closed a total of 20 stores in the U.S. from Q1 2024 to Q2 2025, indicating a strategic shift in operations[44] - The company transitioned operations of several international stores to distributors, including three stores in China in Q3 2024, as part of its restructuring strategy[44] Revenue Breakdown - In the United States, net revenue for the three months ended September 30, 2025, was $25,586,000, down from $32,041,000 in the same period of 2024, a decrease of 20.0%[43] - International net revenue for the three months ended September 30, 2025, was $7,403,000, down from $10,955,000 in the same period of 2024, a decrease of 32.5%[43]

Core Insights - Allbirds, Inc. reported third quarter results that were in line with expectations, with a focus on new product introductions and marketing strategies to drive growth [3][4] - The company updated its full year 2025 revenue outlook, adjusting the guidance range for net revenue and adjusted EBITDA loss [16][19] Financial Performance - Net revenue for Q3 2025 decreased by 23.3% to $33.0 million compared to $43.0 million in Q3 2024, primarily due to structural changes including international distributor transitions and planned retail store closures [4][10] - Gross profit for Q3 2025 was $14.2 million, down from $19.1 million in Q3 2024, with a gross margin decline of 120 basis points to 43.2% [5][9] - Selling, general, and administrative expenses (SG&A) were $21.7 million, or 65.7% of net revenue, compared to $31.0 million, or 72.0% of net revenue in Q3 2024, reflecting cost reductions [6][9] - Marketing expenses increased to $11.7 million, or 35.5% of net revenue, driven by higher digital advertising spend [7][9] - The net loss for Q3 2025 was $20.3 million, or $2.49 per share, compared to a net loss of $21.2 million in Q3 2024 [7][9] Year-to-Date Results - For the first nine months of 2025, net revenue decreased by 21.7% to $104.8 million compared to $133.9 million in the same period of 2024 [10][11] - Gross profit for the first nine months of 2025 was $44.8 million, with a gross margin decline to 42.7% [11][14] - SG&A expenses for the first nine months were $71.0 million, or 67.8% of net revenue, down from $104.2 million, or 77.8% of net revenue in the same period of 2024 [12][14] - The net loss for the first nine months of 2025 was $57.7 million, compared to $67.6 million in the same period of 2024 [13][14] Balance Sheet and Cash Flow - As of September 30, 2025, Allbirds had $23.7 million in cash and cash equivalents, with $12.3 million in outstanding borrowings under its $50.0 million revolving credit facility [15][33] - Inventory at the end of Q3 2025 was $43.1 million, a decrease of 25.0% compared to the previous year [9][15] Guidance and Future Outlook - The company provided updated financial guidance for 2025, projecting net revenue between $161 million and $166 million, and an adjusted EBITDA loss between $63 million and $57 million [19][16]

Core Insights - Allbirds, Inc. has appointed Lily Yan Hughes as an independent director to its Board of Directors, effective October 31, 2025 [1][2] Group 1: Appointment Details - Lily Yan Hughes is recognized for her extensive experience in technology, distribution, real estate, capital markets, and governance [2] - The CEO of Allbirds, Joe Vernachio, emphasized that Hughes' leadership and board experience will be crucial for advancing the Allbirds brand and driving growth [2] Group 2: Background of Lily Yan Hughes - Hughes currently serves as Assistant Dean at Syracuse University College of Law and has held senior positions at Arrow Electronics, Inc. and Public Storage [2] - She has a history of serving on various boards, including DirectWomen, where she is currently Chair, and has held positions with the Association of Corporate Counsel and NUBURU, Inc. [2] Group 3: About Allbirds, Inc. - Allbirds is a modern lifestyle footwear brand founded in 2015, focusing on sustainable materials and superior comfort [3] - The company’s first product was the Wool Runner, and it continues to innovate with materials like Merino wool, tree fiber, and sugarcane [3]

Group 1: Stock Performance - Allbirds, Inc. (BIRD) shares increased by 12.6% to close at $8.39, with trading volume significantly higher than usual, and a 29.8% gain over the past four weeks [1] Group 2: Product Innovation and Strategy - Management is focusing on aligning product innovation, marketing, and customer experience to revitalize brand momentum, including the launch of fully waterproof shoes made from wool, which highlights ongoing product innovation [2] - The rollout of modern lifestyle footwear featuring Allbirds' signature design and materials aims to reinforce brand distinctiveness and support market positioning [2] Group 3: Financial Expectations - The company is projected to report a quarterly loss of $2.64 per share, reflecting a year-over-year change of +1.5%, with expected revenues of $35.46 million, down 17.6% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Group 4: Industry Context - Allbirds, Inc. operates within the Zacks Retail - Apparel and Shoes industry, where Abercrombie & Fitch (ANF) has seen a 1.4% decline in its stock price, with a -15% return over the past month [4] - Abercrombie's consensus EPS estimate has decreased by 1.5% to $2.18, representing a year-over-year change of -12.8%, and it currently holds a Zacks Rank of 5 (Strong Sell) [5]

Core Viewpoint - Allbirds, Inc. is set to release its third quarter 2025 financial results on November 6, 2025, after market close, followed by a conference call to discuss the results [1]. Company Overview - Allbirds, Inc. is a global modern lifestyle footwear brand founded in 2015, focusing on sustainability and innovative materials [3]. - The company is known for its iconic Wool Runner and offers a growing range of products designed for superior comfort, utilizing materials such as Merino wool, tree fiber, and sugarcane [3]. Investor Relations - A live webcast of the upcoming conference call will be available on the Allbirds investor relations website, with a replay accessible for 12 months post-call [2]. - Contact information for investor relations and media inquiries is provided [4].