Fashion
US brand Allbirds’ gross margin drops to 43.2% in Q3 FY25
The decline in gross margin primarily reflects a higher mix of digital and international distributor sales, as well as increased duties in the US business, which offset higher average selling price.
Allbirds reported Q3 FY25 net revenue of $33 million, down 23.3 per cent y-o-y, with gross profit of $14.2 million and a 43.2 per cent margin, down 120 bps.
Declines were driven by international distributor transitions, retail closures, and higher duties.
SG&A fell to $21.7 million.
The company focuses on cost reduction, liquidity, and growth initiatives.
In the third quarter of 2025, net revenue decreased 23.3 per cent to $33 million compared to $43 million in the third quarter of 2024. The year-over-year decrease is primarily attributable to structural changes, including impacts from international distributor transitions and planned retail store closures, the company said in a press release.
Selling, general, and administrative expense (SG&A) was $21.7 million, or 65.7 per cent of net revenue, compared to $31 million, or 72 per cent of net revenue in the third quarter of 2024. The decrease is primarily attributable to lower personnel expenses, occupancy costs, stock-based compensation expenses, and depreciation and amortisation expenses.
“We’re pleased to deliver third quarter results in line with our expectations, highlighted by a robust flow of new product introductions – many of which met with strong customer response,” said Joe Vernachio, CEO. “Entering the final months of the year, we will continue to support our product engine with compelling marketing content to capture consumer mindshare and reignite growth. Throughout the holiday season, we will be spotlighting gifting ideas and emphasising Allbirds’ core principles of comfort, style and sustainability.”
Net revenue in the first nine months of 2025 decreased 21.7 per cent to $104.8 million compared to $133.9 million in the first nine months of 2024. The year-over-year (y-o-y) decrease is primarily attributable to structural changes, including impacts from planned retail store closures and international distributor transitions.
Gross profit in the first nine months of 2025 totalled $44.8 million compared to $63.6 million in the first nine months of 2025, while gross margin declined to 42.7 per cent in the first nine months of 2025 versus 47.5 per cent in the same period a year ago. The decline in gross margin is primarily due to channel mix, with a lower percentage of sales coming from the retail business and a higher percentage coming from its digital and distributor channels, as well as increased promotional activity and higher inventory adjustments.
“Our teams are focused on accelerating progress under our turnaround in the quarters ahead,” added Vernachio. “At the same time, we are taking definitive steps to further reduce costs, enhance liquidity, and pursue value-creating opportunities.”
Fibre2Fashion News Desk (RR)
While trends in high frequency indicators for January-February 2026 appear favourable, the heightened uncertainty around the duration of the Middle East conflict casts a shadow on the near-term macroeconomic outlook for India amid high import dependency for items like crude oil, natural gas and fertilisers, it noted.
India’s FY27 GDP growth is likely to slow to 6.5 per cent from the projected 7.5 per cent in FY26 owing to the impact of higher energy prices and concerns around energy availability, ICRA Ratings said.
The heightened uncertainty around the duration of the Iran war casts a shadow on the near-term macroeconomic outlook for India.
If the conflict lasts longer, the adverse effects could widen across sectors.
If the conflict lasts for an extended period, the adverse implications of the same could widen across sectors, amid an uptick in input costs and the consequent impact on profitability of the India corporate sector.
Amid the projected uptrend in the consumer price index-based inflation in FY27 with risks tilted to the upside, ICRA Ratings expects an extended pause on the policy rates by the central bank’s monetary policy committee in the fiscal despite the anticipated softening in the GDP growth. However, it expects the Reserve Bank of India to continue to intervene on the liquidity front during FY27.
The available data for January–February FY2026 indicate a positive trend across most non-agricultural indicators, with the year-on-year performance of 12 out of 18 indicators improving compared to the third quarter of FY26, while the remaining six deteriorated.
Fibre2Fashion News Desk (DS)
Indonesia’s apparel exports rose modestly to $8.705 billion in 2025 from $8.316 billion in 2024, reflecting gradual recovery.
The US remained dominant, accounting for over 56 per cent of shipments, highlighting growing market dependence.
While Japan, South Korea and Europe offered stability, exports stayed concentrated in key products and segments.
Source link
Methanol prices in India have surged nearly 150 per cent from pre-Iran–US tension levels, tracking a sharp rise in crude oil and tightening global energy markets.
Hormuz disruption risks, limited rerouting capacity, rising freight and insurance costs, and constrained imports are fuelling volatility, with prices seen approaching ₹90 per kg.
Source link
Nike shares fall 9% on weak outlook, expected 20% sales decline in China
Prince Harry surprises crowd by calling attendees his source of hope
Wrigley Field to host Big Ten/SEC volleyball doubleheader
-
Politics1 week agoAfghanistan announces release of detained US citizen
-
Sports1 week agoBroadcast industry CEO says consolidation is ‘essential’ to compete for NFL soaring media rights prices
-
Entertainment1 week agoUN warns migratory freshwater fish numbers are spiralling
-
Tech1 week agoCan a Home Appliance Fix the Problem of Soft-Plastic Waste?
-
Business1 week agoProperty Play: Home flippers see smallest profits since the Great Recession, real estate data firm says
-
Business1 week agoGold prices soar in Pakistan – SUCH TV
-
Fashion1 week agoICE cotton slips on weaker crude, profit booking
-
Business1 week agoMore women are entering wealth management, but few are in advisory roles, study finds