Allbirds sales plunge and losses widen in 2023, co-founder steps down as CEO

Allbirds announced on Wednesday fourth-quarter net revenue fell to $72 million, coinciding with the news that COO Joe Vernachio has been promoted to CEO, effective March 15.

The San Francisco-based sustainable footwear and apparel company said that sales decreased 14.5% for the three months ending December 31, on a lower average selling price, driven by increased promotional activity, partially offset by an increase in third-party net revenue.

For the full-year 2023, net revenue decreased 14.7% to $254.1 million.
As a result of the plummeting sales, the U.S. company reported a net loss in 2023 of $152.5 million, compared to $101.4 million in 2022.

“The company made meaningful progress in 2023 both operationally and financially, ending the year in a much stronger position,” said Joey Zwillinger, chief executive officer, who co-founded Allbirds, and steps down from his role as CEO on Vernachio’s promotion this month.

Zwillinger will remain on the board of directors and serve as a special advisor to Allbirds.

“With the transformative actions we completed over the past year, coupled with world-class leadership, I am confident in the team, and in particular, Joe Vernachio’s stewardship of the brand for this next chapter for Allbirds. We entered 2024 with a strong cash position, healthy inventory composition and volume, and a strengthened foundation.

“Looking ahead, Joe’s focus on growth and rebuilding consumer momentum through compelling products and storytelling is what the company needs now, and sets Allbirds up to achieve durable, profitable growth and create value for our shareholders,” added Zwillinger.

Earlier this month, Allbirds announced the completion of its previously announced agreements with distributor partners in Australasia and Japan.

Under the agreements, the firm said has transitioned four international regions from direct selling to a distributor model, a transition made as part of the San Francisco-based company’s previously announced ‘Strategic Transformation Plan’.