The once-popular shoe company’s sales fell more than expected in the second quarter, and it lowered its view for the full year.
Retail investors in Allbirds (BIRD) were left with a lump of coal after the shoe company’s earnings report on Friday.
Revenue fell more than expected at a 23% rate; adjusted loss widened but came in below analysts’ loss estimate. Following the results, the company lowered its 2025 net revenue outlook to $165 million to $180 million, down from its previous range of $175 million to $195 million.
BIRD shares dropped nearly 30% to their lowest in over a year; the intraday fall was their worst since March 2023. On Stocktwits, the retail sentiment remained ‘bearish’ through the last week until early Monday.
“$BIRD hit,” posted one user. “I should have known better than to buy this,” lamented another user, “now I’m stuck bag holding for years to come.”
Friday’s slide all but erased the strength that had been building up in the shares since March.
Following the results, Morgan Stanley said the company’s fundamentals remain challenged, according to the investor note summary on The Fly.
Allbirds was founded in 2015 and went public on Nasdaq in November 2021. The shoes gained a cult following, especially among tech workers and celebrities, thanks to their minimalist design and sustainable materials. Launching as an online-only brand also helped cultivate a modern, exclusive image that fueled early hype.
However, consumer interest died down. The loss-making company’s sales declined in 2023 and 2024, with analyst estimates suggesting a wider fall this year.
Allbirds stock has lost nearly 99% of its value since its stock market debut.
On Friday, CEO Joe Vernachio highlighted new releases and increased marketing efforts to boost sales. “Beginning this month and continuing through the end of the year, we plan to drop new products every month and introduce new marketing content every week,” he said in prepared remarks.
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