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“Our teams are executing well against our strategic transformation plan designed to reignite growth, improve capital efficiency and drive profitability,” Zwillinger said in a statement. “The dedication and hard work of our flock resulted in a quarter that demonstrated good progress on our strategic initiatives while exceeding our expectations.”
The company in March announced a strategic plan to reignite growth and drive profitability, which includes scaling back its store openings. The plan also focuses on reconnecting with core customers and improving cost savings and capital efficiency.
Allbirds’ decreased revenue and gross margin were mainly attributable to a decrease in average selling price that was driven by increased promotional activity and a higher mix of third-party sales. The jump in SG&A was attributable to higher stock-based compensation and operational costs from 20 stores opened since Q1 2022.
While the company is happy with its current third-party relationships, Zwillinger told analysts that Allbirds’ focus in 2023 is not entirely on wholesale growth.
