Fashion
US’ Allbirds reports $39.7 mn Q2 revenue; gross margin falls to 40.7%
The gross profit totalled $16.2 million, compared to $26.1 million in Q2 2024. The gross margin in the quarter fell 980 basis points (bps) to 40.7 per cent, driven by increased promotional activity, inventory adjustments linked to the European market’s distributor transition, a higher mix of international distributor sales, and increased freight and duty costs in its direct business, Allbirds said in a press release.
Allbirds has posted revenue of $39.7 million in Q2 2025, down 23.1 per cent YoY, with gross margin falling to 40.7 per cent.
Net loss narrowed to $15.5 million, and adjusted EBITDA loss improved to $12.6 million.
CEO Joe Vernachio expects growth in Q4, citing new product and marketing initiatives.
Full-year revenue is forecast at $165–$180 million with continued operational discipline.
The net loss for Q2 2025 stood at $15.5 million, or $1.92 per basic and diluted share. Adjusted EBITDA loss was $12.6 million, slightly improving from the $13.7 million loss in Q2 2024. Inventory at quarter-end was $42.2 million, down 21.3 per cent YoY.
“Strong execution during the first half of the year has set us up for what’s ahead this fall,” said Joe Vernachio, chief executive officer (CEO) at Allbirds. “We are thrilled to be at the threshold of our product, marketing and customer experience initiatives coming together as we continue our path to reigniting the Allbirds brand.”
“In the weeks and months ahead, we’ll be delivering a continuous flow of modern lifestyle footwear that is distinctively Allbirds—modern design, unique materials and unmatched comfort,” added Vernachio. “This debut, coupled with the operational and financial rigor we have embedded into the organization in recent years, gives us confidence in our expected return to top line growth in the fourth quarter of this year.”
Selling, general, and administrative (SG&A) expenses fell to $24.2 million, or 60.9 per cent of net revenue, from $33.6 million, or 65 per cent, a year earlier. Marketing expenses decreased to $8.5 million from $11.7 million due to reduced digital advertising spend.
In the first half (H1) of 2025, the company’s net revenue declined 21 per cent YoY to $71.8 million, while gross margin slipped to 42.6 per cent from 49 per cent. The net loss for the six-month period was $37.4 million versus $46.5 million last year. Adjusted EBITDA loss improved to $31.2 million from $34.6 million in H1 2024.
The company had $33.1 million in cash and cash equivalents, $5 million in borrowings under its $50 million revolving credit facility, and inventories of $42.2 million as of June 30, 2025.
For full-year 2025, Allbirds expects net revenue of $165 million to $180 million, reflecting an estimated $20 million to $25 million revenue impact from the shift to a distributor model in certain international markets and selected US store closures. Adjusted EBITDA loss is projected at $65 million to $55 million.
In the third quarter (Q3) of 2025, the company anticipates net revenue between $33 million and $38 million, with adjusted EBITDA loss of $20 million to $16 million, added the release.
Fibre2Fashion News Desk (SG)
Published
August 28, 2025
Ssense is reportedly filing for bankruptcy protection following a move by creditors to initiate the sale of the Canadian luxury retailer, as per a letter sent to employees on Thursday.
In an email sent to staff, the Montreal-based company said the protection move follows the filing of an application to sell the company by its main creditor, without consent from the retailer, under the Companies’ Creditors Arrangement Act (CCAA), according to a B0F report.
Chief executive Rami Atallah explained that Ssense will in response file its own CCAA application within 24 hours “to protect the company, keep control of our assets and operations, and fight for the future of the company,” according to the memo.
“Recently, we have worked closely with financial and legal advisors to develop our own restructuring plan to stabilize the business and rebuild it for the future,” said Atallah, as cited by BoF.
“The court will decide which path we follow, likely within the next week. Until then, our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future.”
It is unknown which creditor pulled the sale trigger.
The retailer’s CEO went on to explain the headwinds facing his company following the Trump administration’s recent trade policies, which have imposed 25 percent tariffs on goods imported from Canada.
Ssense also cited the closure of the “de minimus” exemption, which allowed packages worth less than $800 to enter the U.S. duty free as a hit operationally for the company.
The bankruptcy protection news follows layoffs at Ssense earlier this year, including 100 positions in May, as the firm tries to lower overheads amid the luxury slowdown affecting demand for high-price goods, especially more younger, aspirational luxury shoppers — Ssense’s target market.
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In a press conference organised yesterday by the International Chamber of Commerce (ICC) Bangladesh and 15 other trade bodies, ICC Bangladesh president Mahbubur Rahman said: “Our entrepreneurs and business chambers strongly support graduation. However, we stress the need for a three- to five-year extension.”
Top trade bodies in Bangladesh have called for delaying the country’s scheduled graduation from the LDC status by five to six years.
Though Bangladesh has fulfilled all three UN criteria, the graduation will bring with it new responsibilities and risks, and therefore, careful preparation is needed to ensure the transition leads to lasting success, ICC Bangladesh president Mahbubur Rahman said.
Though Bangladesh has fulfilled all three UN criteria—gross national income, human assets index and economic vulnerability index—in two consecutive reviews, such a graduation will bring with it new responsibilities and risks, and therefore, careful preparation is needed to ensure the transition leads to lasting success, Rahman said.
Risks include the possible loss of duty-free market access in key export destinations where tariffs of up to 12 per cent could be imposed, and that may lead to a 6-14 per cent drop in exports, he said.
“The press conference expressed optimism that the extended period would provide greater scope for export diversification, development of skilled manpower in automation and artificial intelligence (AI), and building capacity to face future challenges, thereby ensuring sustainable competitiveness in the global market,” the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) posted on Facebook.
The business leaders also raised concerns over the end of special and differential treatment by the World Trade Organization (WTO). “This will make patent rules stricter for the pharmaceutical sector and increase compliance costs,” Rahman cautioned.
Rahman noted that several countries had deferred their LDC graduation in the last.
The proposed five- to six-year deferment would offer Bangladesh the time to secure trade deals with several countries and economic blocs, he added.
Fibre2Fashion News Desk (DS)
Published
August 28, 2025
The British Retail Consortium is getting a female chair for the very first time with former Matalan and Co-op exec Jo Whitfield to take over from Andy Higginson in early October.
Whitfield has a quarter of a century of experience in retail and is currently a non-executive and audit chair at Asda, a non-executive and chair of the ethics committee at Factory International, and host of the Manchester International Festival.
She also played a leading industry role campaigning alongside the BRC to achieve better safety recognition and a change to the law to protect retail shopworkers.
She’ll be joined by Eve Williams, as a new non-executive director on the BRC board. Again, she’s hugely experienced and is VP and general manager of eBay UK as well as having held executive marketing and customer roles in both eBay and at ASOS, before being appointed to her current role.
Whitfield said: “I’m honoured to be joining the BRC as its first female Chair, and to be supporting Helen and her team at such a pivotal time. Retail is an incredibly valuable industry, employing over 3 million people who support their families through their work. It’s also uniquely inclusive and many of us have built our careers from the shop floor or from working-class backgrounds, rising into leadership roles and enjoying fulfilling careers.
“Retailers are at the heart of communities, and we’re acutely aware of the many government policies currently under consideration that could either support or hinder our industry. This is a critical moment for us all and now more than ever, we need a strong, united voice. I look forward to working closely with Helen and the team to ensure the interests of our industry are championed and protected.”
And Helen Dickinson, BRC CEO, added: “Jo and Eve join the board as we deal with multiple public policy headwinds and more to do on big issues like climate change, inclusion, and creating the right environment for growth and investment. I know how passionate they both are on these areas and particularly on people so it’s great to welcome two more women to our board and our first female chair.
“It has been a pleasure working with Andy and I would like to thank him for his pragmatic, down-to-earth advice, leadership and support over the past two-and-a-half years. We are a stronger organisation for it.”
Copyright © 2025 FashionNetwork.com All rights reserved.
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