Allbirds to Close Remaining Full-price U.S. Stores

Core Viewpoint - Allbirds Inc. is closing its remaining full-price stores in the U.S. to enhance profitability and focus on e-commerce, wholesale, and international distribution, which are seen as offering greater reach and flexibility [1] Group 1: Store Closures - The company will close all full-price stores in the U.S. by the end of February, retaining only two outlet stores in the U.S. and two full-price stores in London to maintain key brand touchpoints [1] - The closures are part of a broader strategy to reduce costs and support long-term business health, as stated by CEO Joe Vernachio [1] - Allbirds has been reducing its brick-and-mortar presence over the past two years, indicating a shift towards a more capital-efficient growth model [1][2] Group 2: Financial Performance - In the most recent third quarter, Allbirds reported a net revenue decline of 23.3% to $33.0 million, down from $43.0 million in the same period last year [1] - The company also experienced a net loss of $20.3 million, which is an improvement compared to a net loss of $21.2 million a year ago [1] - Allbirds plans to discuss the financial impact of the store closures during its fourth-quarter and full-year 2025 earnings call, expected in March [2] Group 3: Strategic Implications - Reducing the number of stores eliminates investments in those locations and mitigates exposure to inventory risks amid a challenging retail environment [3] - This strategy allows Allbirds to respond more quickly to changing market conditions without the burden of store operations and overhead costs [3]