Business In News
Allbirds is expanding its retail partnerships by selling 11 Allbirds footwear styles in 41 REI stores and via the outdoor retailer’s website. Known for its commitment to sustainability, Allbirds has been fortifying its brick-and-mortar presence since its IPO in November 2021. In May 2022, the footwear and activewear brand partnered with Nordstrom as the retailer sought to expand its sustainable offerings. Allbirds also has a partnership with DICK’S Sporting Goods subsidiaries Public Lands and DICK’S House of Sport, and Scheels.
In August, Allbirds reported its earnings for the first half of 2022, showing a global net revenue increase of 20% to $140.9 million compared to $117.5 million generated during the first half of 2021, and an increase of 52% compared to the first half of 2020. The company attributed a 27% U.S. net revenue increase for the first half of 2022 compared to the same period in 2021 to the performance of its retail stores. Allbirds operates 55 stores globally, 32 in the U.S., with 11 new stores opening during the first half of 2022.
Allbirds CFO Mike Bufano noted during the August 2022 earnings release that Allbirds would seek to create leaner operations, but that retail would remain an area of investment for the company as it continues to grow.
“Our ability to deliver those results against the backdrop of a dynamic operating environment shows us that our underlying competitive advantages remain intact,” said Bufano in a statement. “We anticipate that the external headwinds pressuring consumer spending in the United States will persist in the back half of 2022. As a result, we continue to take a cautious outlook in our updated 2022 guidance targets. In this operating environment, we are focused on controlling what we can control and have implemented a series of Simplification Initiatives focused on automating and expanding our supply chain and streamlining our operating structure. These Simplification Initiatives are expected to generate annualized SG&A expense savings of $13 million to $15 million beginning in 2023 and significant cost of revenue savings in future years. We will reinvest some of these savings into building brand momentum through product innovation, marketing, retail stores, and marquee third party partnerships.”