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)
The gross margin expanded to 47.3 per cent and diluted earnings per share more than doubled to $1.14 from $0.55.
Wolverine Worldwide has reported revenue of $1.874 billion in 2025, up 6.8 per cent, led by Active Group growth and strong Saucony performance.
Margins and earnings improved, while cash rose and debt declined.
Fourth-quarter revenue increased 4.6 per cent.
CEO Hufnagel highlighted brand momentum and transformation progress.
The company expects 2026 revenue growth with steady margins.
The company strengthened its balance sheet during the year, ending with cash of $206 million, up 35.6 per cent, and net debt reduced 16.2 per cent to $415 million. Inventory increased 10.7 per cent to $274 million, Wolverine Worldwide said in a press release.
The fourth quarter (Q4) revenue rose 4.6 per cent YoY to $517.5 million, supported by strong Active Group growth, particularly Saucony and Merrell. Active Group revenue increased 12.4 per cent to $372.7 million, while Work Group declined 11.3 per cent to $134 million. Gross margin improved to 47 per cent from 43.6 per cent, reflecting product cost savings, favourable mix and price increases, partly offset by higher US tariffs. Diluted earnings per share climbed to $0.38 from $0.28.
“We exceeded our expectations across all key metrics in the fourth quarter, finishing a solid year for the Company. Our biggest brands are growing around the world, direct-to-consumer (DTC) continues to improve, earnings per share increased meaningfully YoY, and I believe we’re finding our footing where we’ve underperformed,” said Chris Hufnagel, president and chief executive officer of Wolverine Worldwide. “I am pleased with our progress in transforming the company and encouraged by the momentum we have carried into 2026. We’re focused squarely on executing our brand-building model with pace and distinction—building awesome products, telling amazing stories, and driving the business each day.”
Looking ahead, Wolverine Worldwide expects fiscal 2026 revenue of $1.96-1.985 billion, representing growth of 4.6-5.9 per cent YoY. The company anticipates gross margin of about 46 per cent, operating margin of roughly 8.8 per cent and diluted earnings per share between $1.31 and $1.46, signalling continued but measured expansion as brand-driven strategy execution progresses, added the release.
Fibre2Fashion News Desk (SG)
The report, ‘Breaking Point: Heat and the Garment Floor’, by Tata Institute of Social Sciences and HeatWatch, documents widespread heat stress and major gaps in workplace protections across factories in Tamil Nadu, Delhi-NCR and Gujarat. Based on surveys of 115 workers and 47 in-depth interviews, along with factory case studies, the study highlights how extreme heat combines with production pressure and gendered workplace dynamics to intensify risks.
Severe heat stress and weak protections plagued India’s garment factories, employing 45 million people, mostly women, a new report found.
It urged legal recognition of heat stress as an occupational risk, stronger labour rights, enforceable safety standards and infrastructure upgrades such as ventilation, cooling and medical access to protect workers’ health, productivity and incomes.
Survey findings reveal limited access to basic protections. Over 36 per cent of workers reported irregular or unclean drinking water, 78 per cent struggled to access toilets, and 80 per cent said their workstations lacked air movement. Nearly 88 per cent felt completely drained during peak summer months, while 87 per cent reported heat-related ailments such as headaches, dizziness and muscle cramps in the past year.
Women workers reported acute impacts, with 96.8 per cent experiencing burning sensations during urination and 92.6 per cent reporting menstrual disruptions linked to heat and production pressure.
Factory assessments across 15 surveyed units across different states showed 60 per cent lacked on-site medical facilities, 73.3 per cent had metal or asbestos roofs, and nearly half did not monitor temperature or humidity. In some cases, monitoring devices were installed only during buyer inspections.
The report warns that extreme heat is not merely seasonal discomfort but a structural labour and public health issue. It calls for legal recognition of heat stress as an occupational disease, expanded social protection, mandatory work-rest cycles, infrastructure upgrades and stronger worker participation in safety decisions.
With India projected to lose 35 million jobs and 4.5 per cent of GDP by 2030 due to heat stress, the study urges urgent structural reforms to protect one of the country’s largest employment sectors.
Fibre2Fashion News Desk (CG)
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